For personal injury plaintiffs, it is common to have a pile of bills that need to be paid. From living expenses to house rents to medical bills to previous loans, there are a number of payments that need to be paid. Chances are due to the injury; you are not gainfully employed. This equates to less money and more bills. In times like this, an injury loan is a good cover option. A lawsuit loan or lawsuit funding is cash advance given to the plaintiff by a lawsuit loan company.
The companies advance the money to the personal injury victim against the settlement they expect from the lawsuit. The borrowed money is returned from the financial compensation the plaintiff receives. A simple search on www.hg.org will show you a number of pre-settlement loan companies. But because there are many settlement funding companies, the choice can be hard to make. Personal injury victims tend to get many loan offers via email. Choosing the first one is not the correct answer. One needs to find a reputable injury loan company. To do so, one has to follow these steps.
1. The first step is to talk to your lawyer. There is a high probability that your attorney will have had dealt with lawsuit loan companies in the past. He or she will be able to tell you which lenders to avoid and which funding firms are the best. Make use of this resource to your utmost. Also, use your lawyer to negotiate the terms of the loan to your advantage.
2. After getting a list of probable lawsuit funding firms, look for companies that are members of a trade association like ALFA. Such loan firms need to follow the rules, regulations and best practices set by the organization. This will give you a brief idea of the lending amounts, disclosure requirements and any conflicts of interests that may arise.
3. Now, that the list is further shortened ask each of the lawsuit loan company a few questions. Is there an application fee? If yes, then how much is it? Many companies evaluate for free, keep this in mind. Also, ask the rate of compound interest and how often it is done. Many companies do it more frequently than a month. This would mean that you pay more at the end of the period.
4. Compare the rates of all the loan companies that have been left at this point. Since the funding fee is high; you can only do this step after the case has been evaluated. Few litigation funding companies give access to their rate beforehand.
5. Before choosing the final option, always confirm the amount you need to pay back to the lender. It should not be more than the amount you would receive in the settlement. Also, ensure that clause that you need not pay anything if the personal injury case is lost.
The last tip before you leave; if the lending company does not answer any question to your satisfaction, then look for another lawsuit lender.