Accidents are unpredictable and often leave huge damages and inconveniences, whether on people or vehicles. You may suffer serious injuries inhibiting your ability to work, causing you to be unable to pay the accumulated bills.
In cases where you file for a lawsuit, it can take months or even years for the legal processes to conclude. The legal process of a lawsuit is also quite expensive. During these times, it may become challenging for you to stay afloat financially.
Pre-settlement loans are an excellent solution to such problems. Pre-settlement loans, also known as legal financing, help ease your financial burden as you wait for the legal processes to end.
Here are the main benefits of pre-settlement funding:
1. Keep up with Your Financial Obligations
A pre-settlement loan is a great way to keep up with your bills. Having this money in advance can help with the hospital bills, and have a way to sustain your life before you’re able to go back to work.
The lawsuit processes are usually time-consuming and draining, both mentally and financially. Therefore, you will need money while waiting for a lawsuit. Having a backup plan in such a situation is a smart business move, both at a professional and personal level.
2.Does Not Require a Good Credit Score
Anyone of legal age can apply for pre-settlement funding regardless of their credit score. Unlike other loans where you need collateral and a great credit score, pre-settlement loans tend to be easier.
The only consideration for getting this loan is the details of your lawsuit. The stronger your lawsuit case is, the easier it is for you to gain access to the pre-settlement loan.
3. You Can Hire a Qualified Lawyer
Many people involved in an accident often fail to pursue any legal lawsuits because of the process it usually takes to lead to a settlement. Cases are generally expensive because of the amount of money you will need to pay lawyers.
Having a pre-settlement loan will allow you to hire a lawyer, making it less tedious for you and increasing your chances of winning and getting your settlement.
4. Timely Access to Funding
Pre-settlement loans reflect in your bank account after a short time. The process is quite simple. Your lawyer presents the facts of your case, and if they are convincing enough, you get the money.
This is important because the point of this money is to help you stay afloat. If it takes too long to reflect in your account, your bills will be piling up, and so will the frustration of trying to stay afloat.
5. No Repayment if You Lose
In the unfortunate chance that you lose your case, you will not have to repay the loan. Some firms have a no recourse clause. This is why the interest rates are relatively high.
The law firm that you are dealing with will receive their money from the settlement. In some cases, the client does not pay back the funding after they lose the case.
You Should Apply for a Pre-Settlement Loan
If an accident has left you in a poor financial situation, you can apply for a pre-settlement loan. Its positive impact as you wait for the settlement is immeasurable. People deal with so much emotionally after a traumatic experience like a car accident.
Having a solution to the financial baggage will help you manage and adapt to the new situation. In addition, the application process is not as hectic as using other types of loans. Apply for a pre-settlement loan to help ease your financial burden.
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