Facts You Should Be Aware of When Taking Out a Pre-Settlement Loan
For those who have been injured in an accident which was caused through no fault of their own, financial struggles are often not far away. As a case proceeds, even one in which the victim looks set to win, they can easily struggle financially until they receive their compensation. This is because of lost earnings and rising medical bills as a result of the injury which has been sustained. There are some options for those in this kind of situation however, and we spoke to a Washington DC catastrophic injury lawyer to find out which is the best.
A pre-settlement loan is the best option for someone who is going through the process of making a claim, and the smartest way to secure funding during this challenging time. These loans are quite literally designed to help people in this kind of situation. These are similar to a traditional loan in that they charge interest which is compounded on monthly basis. Where this kind of funding does differ from a traditional loan however, is that if you do not win the case, you will not have to pay back the money.
Why This Loan Makes Sense
This point which we have just made regarding not paying back the loan if you don’t win, is critical to ensuring the financial safety of the claimant. If they were to take out a personal loan in order to cover costs, and then they were to lose the case, it could easily plunge them into great debt and financially turmoil. A pre-settlement loan therefore is a far smarter option regarding funding options.
Details of The Case
When a company is assessing whether or not a person qualifies for a pre-settlement loan, they will look at the details of the case beyond anything else. This of course is because they are aiming to only lend to those who have a good chance of winning their case.
No Credit Checks Required
If this is an option that you would like to consider but you are worried about the fact that you have poor credit, the reality is that there isn’t anything to worry about here. Ultimately this is a loan which is either not repaid if you lose, and which is repaid directly by the courts if you win. There is almost zero risk to the financial services company no matter what your credit score is, which is why they don’t bother to check it when they are processing your application.
Speaking With Lawyers
Law firms have no connection with financial services companies who offer these loans, but they are experienced enough to know who they should be working with and who they shouldn’t. This is why it is a good idea to have a chat with your lawyer in order to find out which are the best companies to speak to in order to secure a pre-settlement loan.
Any more questions which you have, feel free to ask in the comments section below.