It can be a difficult situation, financially, when you find yourself in the middle of a lawsuit, particularly if you or your loved one is on the receiving end of a physical injury or trauma in addition to that. Moreover, pursuing and fighting a case has the tendency to take several months or even years to resolve and come to a decision, hence, putting more stress on your financial situation.
In order to get relief from such situations, pre-settlement loans can prove to be a blessing for people stuck in such a difficult circumstance. Pre-settlement loans tend to provide lawsuit funding so that people are able to pay their bills and stay afloat financially until they reach a settlement in the court. This kind of funding tends to give plaintiffs in a civil case access to fast pre-settlement cash before the case is settled.
Despite the term used to describe this financial aid, a pre-settlement loan is not really known to be a traditional loan, such as a cash advance or personal loan. You are not borrowing money from a lender only to repay the loaned amount with interest later. Pre-settlement loans are also called as pre-settlement funding or lawsuit advances. They are not loans, but instead lawsuit funding.
There are various benefits of pre-settlement funding, let’s take a look at some of the significant ones below.
• Take care of personal expenses:
During any civil lawsuit, expenses tend to pile up. This is particularly the case when you or your family member is a victim of some kind of accident, such as an auto accident that caused significant damage to you and your vehicle. A serious injury or even psychological trauma has the tendency to result in missed work or lifelong disability. Lost wages, increasing bills, and expensive medical bills can result in you with a shortage of cash. Fast pre-settlement cash offers you with immediate financial relief in these tough situations when you neither have the time nor the resources to wait for the settlement of your case.
• Pay for a trial:
If the lawyer you hire is not able to come to a settlement with the defendant, your best bet would be to take the case to the court. However, taking your case to the court in front of the jury tends to raise your immediate costs. A pre-settlement loan would help you cover up the cost for the trial as well.
• Low risk:
There is no need for you to worry about not having enough money in order to pay back your settlement loan due to the fact that it comes directly from your lawsuit settlement. So, there is little to no risk involved with this type of funding.
So, by now you must be aware of what is a pre-settlement loan and in what different ways is it beneficial for people in these tough financial situations.