A cash advance on a settlement means you’re gaining access to money you expect to receive when your personal injury case resolves.
A pre-settlement cash advance offers a strategic financial buffer, assisting plaintiffs through the monetary difficulties that lawsuits invariably entail.
There’s no standard for when a case in litigation will be resolved. Some cases settle in months, while others take years to get to trial—leaving plaintiffs in a financial lurch.
Lawsuit loans, or lawsuit cash advances, can help you pay rent and other monthly expenses, allowing your attorney to pursue your case in court.
Definition of a Lawsuit Cash Advance
A cash advance on lawsuit settlement is money extended to plaintiffs entwined in an ongoing lawsuit.
Not to be confused with a traditional loan, this is non-recourse financial assistance that only necessitates repayment if your attorney recovers compensation in your case.
Since the lawsuit loan company shoulders all the risk, such a loan safeguards your economic interests because it is risk-free for the plaintiff.
Advantages of a Cash Advance on Lawsuit Settlement
One of the prime advantages of such cash advances is the non-reciprocal risk involved for the plaintiffs.
The funds are made available based on the estimated merit of your ongoing legal case without delving into your credit history or personal financial condition.
There’s no credit check, background check, or call to your employer. What’s important is the strength and value of your personal injury lawsuit.
Moreover, a cash advance on your settlement helps maintain your financial stability, allowing you to manage your living and legal expenses while your case is still pending.
How Many Cash Advances Can You Get?
There’s no universal standard that limits the amount of cash advances you can get. Every lawsuit loan company considers applications independently.
Companies want to ensure their risk remains manageable and may not grant you more than one advance. What could happen, though, is a company buys out your original settlement advance, rolling it into your new one.
How a Cash Advance on Lawsuit Settlement Differs from a Traditional Loan
With a traditional loan, your credit history, employment status, and overall financial health dictate your eligibility and the loan amount.
A lawsuit cash advance operates differently because your case’s merit is the sole criterion for eligibility.
Another important difference between a traditional loan and a pre-settlement cash advance is how repayment works. When you take a conventional loan, you must repay it no matter what.
With lawsuit cash advances, you are only responsible for repayment if your attorney wins your case. You do not owe any money if you do not receive a settlement or the court finds for the defendant in a trial.
How Injury Wallet Can Help
Finding the right lawsuit loan company is crucial. Numerous funding companies are out there, but not all their terms are favorable.
Researching on your own to find the right company can feel like a daunting task. Fortunately, you don’t have to go at it alone—let Injury Wallet help!
We are not a lawsuit lending company, but we work with the best lenders in the industry.
We can help by reviewing your case and matching you with the lenders who will provide the most favorable terms. Apply now!
