When you are financially strapped after a terrible personal injury, you may obtain a loan to help make life easier. However, you need to research the lender. You should be certain that it is a good option for you and won’t hurt you in the long term. As you find out more information on how the personal injury loan process works, you can make an educated decision.
How the Personal Injury Loan Process Works
Personal injury loans are great for when you’re in a difficult spot and trying to juggle bills caused by your injury.
What is a Personal Injury Loan?
Commonly known as pre-settlement personal injury loans, these loans help to provide finances for those who have mounting bills they are unable to pay due to a personal injury. You would need a loan in the event that your case hasn’t settled yet, where you did not yet receive an award for your damages. When you win, you pay back the settlement. However, if you lose, you do not have to pay back the case. The lender takes on the risk of an unsuccessful claim. Most personal injury loans require compound interest. This can be between 20% to 60% of the principal.
What Types of Personal Injuries Might Qualify?
Most personal injury cases would allow you to get a personal injury lawsuit loan. This can include car and other automobile accidents, medical malpractice, workers’ compensation claims, dog bite injuries, defective product liability, wrongful death claims, and slip and fall accidents. You can speak with a personal injury attorney to figure out which cases can qualify.
How Do I Become Eligible?
If you have a strong settlement case where the estimated compensation is high, you are more likely to be favored by personal injury lenders. Depending on the company, they may or may not look at employment, credit checks, or expect upfront fees. If you have a weaker case and are unsure if you will win, you may not be eligible. Personal injury lenders provide loans that are non-repayable if you lose. Additionally, if you receive less than the settlement amount you expected, you may not have to pay off the entire loan. These are risks the lender considers before allowing you to obtain one.
How Do I Apply?
Application for the loan is typically fast and will require the help of an attorney and a lender. You can compile the list of expenses that you have, such as medical bills, wage loss, and additional bills. Once you have a good idea of your financial status, your attorney will help you select from different personal injury lenders and review their reputation. You might have to choose between five to six different lenders before accepting one of their loans. They are very selective despite how simple their application process is. One of their representatives can walk you through the application and help you fill in the necessary information.
Learn More About the Personal Injury Loan Process
You can ask additional questions when speaking with a personal injury lawyer. They understand what you are going through and will work hard to get your life back to normal.