If you have been involved in an accident which was not your fault that has left you injured, making a claim against the negligible party is always recommended. The goal here will be to seek compensation which will cover the costs involved with medical bills, and to replace any lost wages. A problem which many find is that whilst they are waiting for the outcome of their case, they struggle financially, as a result of the injury. In such an event you may look to get a pre-settlement loan, which is designed to tide you over until the case is concluded. In order to provide you with more information, we spoke to a Washington 18 wheeler accident attorney about these kind of loans, and exactly what you can expect.
Basics of the Loan
The basics of this kind of loan is that you will be offered a cash amount which you can borrow whilst the case is ongoing. Much like a traditional loan you will have to pay interest on the amount which you have borrowed, which will be compounded each and every month. Unlike a traditional loan however, pre-settlement funding is classed as ‘non-recourse’ which means that if you do not win the case, you won’t have to pay back the money.
Qualifying For The Loan
In terms of qualifying for the loan, much of this will be decided by the strength of the case which you have. This stands to reason of course, given that you won’t be repaying if you do not win. No company which offers funding wants to run a big risk of not getting their money back, which is why they have a specialist team which will take a look at your case and then make the decision as to whether loaning the cash is a smart option. Contrary to what many think, credit checks are not part of the qualification process, because the company will be paid directly by the courts upon victory.
What You Can Use The Cash For
It makes the best sense here that the money which you borrow is used for the cost of living requirements which you have but there aren’t any actual restrictions on how this money can be spent. There are no penalties which you will face if you spend this money on something else, but it makes little sense to do so when the money is required to make up the short fall of your monthly income.
Speaking With Your Legal Team
The legal team which is taking on your case is going to be the best place to get advice about how to get a pre-settlement loan. There are many companies which offer this service and over time a legal team learns exactly which are the best to use. Law firms are not lending services of course, but they will be able to put you in touch with the best place to secure your loan.
Any other questions about a pre-settlement loan, feel free to let us know in the comments.