Victims of an accident can sometimes face a seemingly endless amount of debt. In the blink of an eye, someone’s careless act leaves them with injuries, lost income, and a mountain of medical bills.
Although they have the legal right to file a personal injury lawsuit and attempt to recover damages, the wheels of justice can move at a snail’s pace. Even if they have a slam dunk case, settlement money could remain out of reach.
Evergreen State accident victims can get help from a Herschensohn lawyer, a personal injury expert who will fight tooth and nail to recover all their damages and help them seek justice. Reach out today and schedule a free consultation.
Lawsuit Funding Options in Washington State
Many accident victims injured by a negligent act will file personal injury lawsuits to recover damages. Settlements from insurance companies will help pay for things like medical bills, lost wages, and sometimes even non-economic damages such as pain and suffering or emotional trauma. Unfortunately, settlements aren’t quickly doled out, and even if the insurance company is willing to pay, their first offer is usually nowhere near fair.
Your personal injury attorney’s job is to negotiate with them so that you receive the maximum compensation possible. However, this is a time-consuming task that begins with the gathering of evidence and then pretrial negotiations, all of which can take several months or longer. Victims who can’t work due to injuries face mounting bills while waiting for their settlement.
Lawsuit Funding
Fortunately, there is a way for struggling personal injury victims to get the cash they so desperately need while their lawyers battle with insurance companies to ensure that they’re properly compensated. Many accident victims pursue lawsuit loans to cover their bills before a settlement is reached.
Although commonly referred to as a lawsuit loan, they also go by other names. Also known as litigation or pre-settlement funding, a lawsuit loan will provide the victim with up to the estimated settlement amount. That money can be used immediately, and there are no limitations on what it can be used for. Mortgage or rent payments, medical bills, or anything else are all fair game.
How Do Lawsuit Loans Work?
Lawsuit loans give victims the cash they need while their law team fights for maximum compensation. Some plaintiffs would drown financially while the months of negotiations drag by, and lawsuit loans are an excellent option for some. However, they’re not free.
Each lending institution works differently. However, the basic principle is the same for each of them. After careful consideration of what your settlement is most likely worth, the lending institution will give you a portion of what the anticipated settlement amount will be. Once you receive your settlement, you’ll be obligated to pay back the loan plus a previously agreed-upon amount of interest.
Some lawsuit loan institutions only require loan repayment if you receive a settlement. Although this is the norm, not all lenders follow this practice, so it’s important to understand their terms when requesting a loan.
Why Should I Apply for a Lawsuit Loan?
Although unfair, victims of a careless act that’s left them with life-altering injuries that don’t allow them to continue to earn a living can’t immediately demand a settlement. Personal injury negotiations can take months or sometimes years to be settled. And while the victim patiently waits for compensation, their bills can quickly pile up.
Victims who don’t have endless amounts of available cash can ease their minds and get their bills paid by applying for a lawsuit loan. Once they receive their settlement, they’ll be responsible for paying back the money plus interest. Still, this option is much better than having monstrous debts and perhaps even losing their homes or rental residences.
Most lawsuit loans are approved within a few days, granting less-than-fortunate victims the cash they need to live. A lawsuit loan is an obvious choice when deciding between bankruptcy or homelessness. Victims who have a case that could offer a large settlement but don’t have time can benefit from a lawsuit loan. It gives them the time for their legal team to negotiate a better settlement, and they can still pay their bills.
Washington Lawsuit Funding Options: The Bottom Line
Victims of a road accident that was of no fault of their own and who’ve sustained injuries that prevent them from working are posed with a difficult choice. Do they wait out the lengthy litigation process while they quickly go broke, or do they simply take the first and most likely worse settlement offer? For those victims struggling to pay the bills while waiting for their settlement, a lawsuit loan can be their salvation.