Lawsuit Settlement Funding
If you suffered a personal injury, you may be able to obtain a loan against the expected recovery in your personal injury case. Assuming of course, the defendant in the case is legally responsible for your injuries and there is sufficient insurance to cover the economic and general damages your lawyer is claiming.
The Loan Is Secured By Your Recovery
These type of lenders describe themselves as lawsuit lenders, legal lenders and case lenders. In essence, the loan is secured by the anticipated settlement in your personal injury case. The lender will secure a lien against your recovery which will require your your to agree to the arrangement in writing.
Advantages Of Case Lending
People who are seriously injured can be out of work for many months and consequently need of money to cover their living expenses. By borrowing against the future proceeds of their recovery, by way of settlement or judgment, the borrower can obtain immediate access to cash. This is particularly attractive with people who would not otherwise qualify for a loan because of credit problems.
You Can Apply On Line
You can apply online to any number of legal lenders. On the application, you provide the details of your case along with your attorney’s contact information. The loan company then verifies your information. Sometimes they will ask to review your medical records. After speaking with your attorney, examining the case on the basis of both liability and damages, the loan company will determine the risk value of your loan which will dictate the interest rate you will be charged.
How Much Can I Borrow? The Ten Percent Rule
Legal lenders will usually loan you a maximum of 10 percent of the amount they think your case will settle for. For example, if a lender calculates the full settlement or verdict value of your case is approximatley $100,000, they will lend you ten percent of that amount, or $10,000.
No Recourse To You Or Your Lawyer
These types of loans are normally non-recourse loans, which mean that if you lose the case, the lender will not be allowed to come after you or your lawyer for the amount you borrowed from them.
So What’s The Down Side?
The lending rate can be quite high which is why you will want to pay-off the loan immediately upon receiving your settlement. So shop around for the best interest rate before making your decision.
Here are some Case Advance Lenders you may wish to consider: