Five Reasons Why You Need a Pre-settlement Loan | After suffering injuries in an accident, there are several costs you might need to cover before you get a settlement from the liable parties. A personal injury case may take a significant amount of time before it is settled. You may require funds in the meantime to cater to your ongoing treatment and other costs that you are not able to meet since you might be unable to continue working. In this case, you will need to take out a pre-settlement loan.
A pre-settlement loan helps you manage the financial stress that comes after you have been injured, and you can repay it after your personal injury claim has been settled. Let’s take a look at the advantages that may come out of taking up a pre-settlement loan.
Why Do You Need a Pre-settlement Loan?
1. Cover Medical Expenses
If you have ongoing medical treatments for injuries pertaining to the accident, you might need funds to take care of the medical bills that may be piling up. If your case is taking even longer to settle, you can request multiple pre-settlement loans. However, this depends on the information and issues you list on your loan application request. Such loans can be very helpful, especially for those who did not have any emergency savings.
2. For Your Auto Repairs
Before your settlement is finalized, you may want to repair your vehicle so you can continue using it. A pre-settlement loan allows you to fix your vehicle in a more timely manner. When your claim is settled, and you are compensated, you can use it to pay back the loan.
While injured, you may not be able to go back to work or work the same hours you used to before the accident; this means you will not be able to cover your rent or other bills. Getting a pre-settlement loan can ensure your bills are paid while you wait to be compensated. Lifting some financial burden can be a positive influence on your recovery.
4. Pre-Settlement Funds Can Increase Your Claim’s Value
Being under a lot of financial stress may push you to accept a lower settlement than you deserve. Getting a pre-settlement loan will allow you to be patient with your claim and push for the best settlement offer possible. You will be in a better financial position; hence you will be comfortable waiting for a settlement offer that matches your claim’s true value.
5. Enables You to Retain a Legal Representative
Some lawyers may be reluctant to work only on contingency, especially if they know your case will take longer to get settled. You can eliminate this concern by using a pre-settlement loan to cater to your attorney’s costs. Aside from paying your lawyer’s fees, you can also use it to pay for litigation charges, which may include medical reports, disposition, and expert witness payments.
Pre-settlement Funding Can Be Of Great Assistance
Personal injury lawsuits may take a while before they settle, which may leave you with various financial burdens that are difficult to cover due to your injuries. A pre-settlement loan aims to keep you afloat in the meantime as you wait to be compensated. If you have filed a claim and are wondering how you might cover litigation costs, you can discuss the issue with your lawyer and determine whether you should pursue pre-settlement funding.