Pre-Settlement Loans: Can You Get More Than One?

by | Dec 7, 2020 | Financial Featured

Pre-settlement loans help you pay for your expenses, including medical bills and other financial needs, when waiting for compensation against an injury claim. Pre-settlement loans help injured individuals regain the upper hand in negotiations for their settlement. At the same time, they can ease the pressure that comes with medical bills and other expenses due to loss of income. Can a person get more than one loan? It is possible. Read this article to find out more.

In most cases, a pre-settlement loan gets offered once, but it is possible to get another one if your case takes longer. To get a second loan, you have to provide your case details and financial data to receive an amount that will help you through until compensation.

Why Would You Need a Pre-Settlement Loan?

A pre-settlement loan, commonly known as lawsuit funding, helps you cover your needs and expenses when you have filed for an injury claim case and are awaiting compensation. Injury claims can take a long time, and with no wages, you will be financially get stranded. You can claim at least two years of the initial injury at the beginning of the claim applicable to some states.

Why Do Compensation Cases Take Longer?

After you file a claim, the attorney and the defendant’s attorney require time to collect evidence and other information needed for the claim. Collecting all the necessary information requires time, especially if there are unending negotiations and discrepancies. The longer the negotiations last, the more you will stay without compensation and wages.

At times, insurance companies and defendants’ lawyers use these tactics to make you accept the little amount offered to compensate your claim. A pre-settlement loan enables you to stay afloat and negotiate the case until you receive full compensation.

What if I Have Costly Damages?

When you file for an injury case, you aren’t only looking for justice, but for compensation for the damages caused. In this scenario, it means the more the injuries, the higher the payout will be. Various factors determine a claim’s value. These include accruing medical bills, current and future lost wages, property damages, loss of consortium if married, and physical and mental pain and suffering.

The main reason for getting a pre-settlement is to avoid rushing into an unfair agreement for compensation.

What Is the Process of Getting a Pre-Settlement Loan?

Getting a pre-settlement loan is very simple. You can learn how pre-settlement funding works in four easy steps. You only need to fill out a few forms, provide your claim and financial data, and include your contact information and that of your attorney. The data then gets reviewed before funds are approved and deposited in your preferred account. There are no restrictions on spending the pre-settlement loans.

How Is Repayment Made?

Repaying a pre-settlement loan is done when the lawsuit is over, and compensation gets approved under the law. It is done directly from the settlement. It’s like replenishing the source that covered your expenses and does not act in the same manner as a bank loan.

What Happens if You Don’t Get Compensated?

Sometimes, things don’t go as planned. The case might prolong, stall, or get dismissed without compensation. When this happens, most lenders don’t ask for recovery. They will wait until the case has concluded, then dismiss the loan according to their terms.

If you are involved in an accident and suffer injuries, it’s advisable to consult with an attorney. A competent lawyer will discuss all of your options with you and advise you regarding filing a personal injury claim. While the compensation takes long, a pre-settlement loan is available to cover your medical expenses and other needs until you have been fully compensated. This loan will protect you from getting a raw deal or suffering while waiting for compensation.

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