Suing is rarely anyone’s first option, but sometimes you have no choice when you have expenses you need to pay.
Yet the legal system rarely moves at a practical pace. You have bills due now, not months or years from now.
The pressure of your expenses might leave you asking, Can I borrow money from my lawsuit? In many cases you can, in the form of a lawsuit loan.
So you know you can apply for a lawsuit loan, but now you’re wondering, What can I spend my lawsuit loan on?
The short answer is you can spend your lawsuit loan on almost anything. However, how you spend your money is usually limited by those same practical concerns that led you to apply for the loan in the first place.
Lawsuit Loan Basics
Lawsuit loans, also called pre-settlement funding, are advances on the amount you expect to receive from your lawsuit.
Pre-settlement funding is non-recourse, meaning you have no obligation to repay if you don’t win or settle your suit.
How Do Lawsuit Payments Work?
After you’re approved, the lender sends you the money within a short time.
Once you settle or are awarded damages, the amount you borrowed plus the lender’s charges are taken out of the payment you receive.
How You Can Spend Your Lawsuit Loan
When you sue, you typically request compensation for expenses like medical bills or lost wages.
Sometimes, you also request punitive damages meant to punish the other party, but those are rarer and frequently capped.
When you get your settlement, you can use the money how you want, but what can you spend your lawsuit loan on? Is the loan money different?
As a money advance, a lawsuit loan works the same way as a settlement.
Most people will spend their loan money on medical bills and other necessities they can’t pay for due to their injury. However, you can spend your loan on just about anything.
Considerations When Spending Lawsuit Loan Money
How you spend your money is up to you, but most damages are intended to compensate you for harm the defendant caused. If you spend your money on just anything, you may find yourself in debt or unable to pay future bills.
Many people use pre-settlement funding to cover expenses like:
- Medical bills,
- Rent or mortgage payments,
- Vehicle payments,
- Utility bills,
- Groceries and household essentials,
- Childcare costs, and
- Other loan payments.
Apart from the day-to-day expenses tied directly or indirectly to your legal case, what else should you think about when deciding how to spend your loan?
Carefully consider how much you’re asking for now compared to how much you’ll actually get later. Look at how much of your final award will go toward:
- Attorney fees,
- Taxes,
- Liens, and
- Lawsuit loan interest.
Lenders consider these factors, but they don’t tell you how to spend your money. They won’t micromanage how much money you have after everything is divided up, even if you end up with little or none at all.
Injury Wallet Helps You Find the Best Rate
At Injury Wallet, our one-stop shop compares rates on your behalf to help you get the best deal on your lawsuit loan.
With the best rate out there, you won’t have to worry so much about the interest taken out of your final payment when you’re deciding how to spend your pre-settlement funding.
You start with our short lawsuit loan questionnaire. With the information you provide, we shop around for the lawsuit loan company with the best interest rate. Then you decide whether the rate and terms work for you.
Get started online today.
