Sustaining an injury in an accident is frustrating, especially if you did not cause the accident. However, the repercussions of an accident can be wide-ranging. In reality, an accident can change the course of your life, especially if it was severe. In addition to causing potential trauma and stress, an accident can put you out of work, possibly for a long time. It can also create an endless stream of medical bills in addition to the existing bills you may no longer be able to pay.
Dwindling savings and unpaid leave are often the reality many accident victims face, whether they experienced a car accident, slipped and fell, or endured any other type of personal injury. As a result, many people give up on their compensation due to a lack of funding to pay for lawsuits. After all, not everyone has cash for lawsuits lying around. But legal finance loans might be just the right thing to secure financial freedom, even in a time of distress.
What are legal settlement loans?
Hiring a personal injury attorney might sound like the quickest and simplest solution for your cash flow issues. Filing a lawsuit against the person or establishment whose negligence caused the accident can bring a much-needed sense of relief.
Keep in mind that reaching a settlement might take longer than you think. This is especially true if your case goes to court because litigation can take longer than the negotiation process. If your lawyer is working on a contingency basis, you are still likely to run out of cash if you are out of work for a long time.
Legal funding has many names, from personal injury funding to certified funding. But it all refers to the same thing: a non-recourse cash advance.
A crucial distinction must be made between legal funding and bank loans. While bank loans require collateral and you need to pay them back, legal funding is a no-risk advance. In fact, you must repay the advance only if and when you win your case and get compensated.
Is legal funding better than a bank loan?
Certified funding can appear like the more expensive solution at first sight. However, if you dig a little deeper, you will uncover a plethora of benefits that bank loans simply don’t provide.
Pre-settlement funding does not depend on your credit score. This levels the playing field even if you don’t have a perfect score. Another reason that legal funding has an edge over bank loans is no monthly payments. Unlike personal loans, settlement advances require no monthly payments and fees. In other words, legal funding is a fast and easy cash lifeline in a time of crisis.
Legal funding can also be financially empowering. Remember: insurance companies will try to get you to accept the smallest compensation possible. If you are struggling to make ends meet, you are more likely to accept an unjust settlement offer. But a legal settlement loan can allow you to take enough time to negotiate a better settlement or prepare your case for trial.
Every personal injury case is unique, and it is normal if you have questions. If you need legal funding now or want to discuss your lawsuit loan with a professional, contact Certified Legal Funding today. Our friendly representatives will answer all your questions about applying for a personal injury loan.