Filing a lawsuit is often a complicated and prolonged process. When waiting for a settlement, everyday financial obligations can become significant challenges. Options such as a lawsuit loan help bridge the financial gap.
However, consider these things before applying for pre-settlement funding: interest rates, loan companies, your case value, and borrowing amount.
You want to ensure your decisions align with your actual needs.
What Is Pre-Settlement Funding?
First, it’s essential to understand what pre-settlement funding is. It’s often called a lawsuit loan, but it’s not a conventional loan.
Essentially, it’s an advance against your potential lawsuit settlement designed to ease your financial burden while your case is pending.
This tool isn’t suitable for everyone or every case, so it’s important to assess your situation carefully and consider several factors before deciding to proceed.
Factors to Consider When Considering a Lawsuit Loan
Before applying for a lawsuit loan, doing a little research is essential. Please consider these factors before applying for pre-settlement funding.
Evaluate Lawsuit Loan Rates
When investigating pre-settlement funding options, one of the first things you should consider is the lawsuit loan rates.
Some lenders may be vague about their rates, making it vital for you to inquire upfront. It could indicate high rates if they evade your questions or are unclear about their charges.
Finding the Right Lawsuit Loan Company
Finding the right pre-settlement funding company is crucial. Fortunately, Injury Wallet can help you identify the best lawsuit loan companies.
Avoid lawsuit loan brokers who might complicate your case, charge additional fees, and take more time. Working with a reputable direct lender will streamline the process and save you money.
Ensure Your Attorney Is Involved
Always let your attorney know you’re considering pre-settlement funding. Their involvement is necessary for the qualification process.
This step will prepare them to respond promptly to your funding company’s inquiries and document requests.
Know Your Case
Before applying for pre-settlement funding, know your case well.
The more questions you can answer about your case, the fewer queries your legal funding company will direct to your attorney, freeing them up to focus on fighting for your compensation.
Understand Your Potential Claim Value
Get a realistic understanding of your claim’s value before you apply for pre-settlement funding. This estimate, best determined in consultation with your attorney, will help you gauge a realistic funding amount to request.
Don’t Overextend Yourself
While it might be tempting to secure a larger cash advance, only apply for the amount you genuinely need for essential expenses.
Pre-settlement funding can be expensive, and it’s necessary to manage it wisely.
Contact Injury Wallet
As your one-stop shop for finding the most suitable pre-settlement funding options, Injury Wallet takes the hassle out of your search.
Our mission is to help you find a solution that buys your attorney extra time to fight for your maximum compensation, relieves your financial stress, and provides a quicker economic turnaround.
However, remember that pre-settlement funding should be an option only if you face financial hardship and can’t wait for your case to settle. It’s a tool, not a requirement.
By carefully considering these points before applying for pre-settlement funding, you can make an informed decision that truly serves your best interests.