Last Updated on January 24, 2020 by Marie Bautista
An accident, by definition, is an unplanned event, one that can put you in a significant financial mess. If the extent of your personal injury is such that you would not be able to work for quite a long time, it can leave you with no income. You will be forced to take money out of your savings account or ask for a loan from financial institutions or banks or from your friends or family to pay for medical bills, household bills, and to finance your litigation. This is where a personal injury loan, also known as a settlement loan, comes in. You can take one and it will tide you over until your lawsuit is settled or you find an alternative source of income. The best part is that you have to pay the loan back only after your lawsuit is settled, either in the court or outside the court. If the case is lost, then you do not have to pay the loan amount back.
There are many settlement lenders in Canada. However, it is important that you go with a reputable lending company, like Settlement Lenders. Otherwise, you will wind up paying a huge amount in interest rates and other hidden fees. Also, some lenders would still make you pay the loan amount back even if you have lost the case. The best thing about Settlement Lenders is the transparency in the whole process. The company’s loan officers will tell you everything about the interest rates and other fees if any. If you are eligible for the loan, you will get the amount as soon as possible. If the case is lost, you will not have to pay anything back. Also, there are no credit checks. You may even apply for a personal injury loan online, just visit www.settlementlenders.com
Facts about personal injury claims that you may find useful:
- You can apply for a personal injury case as long as you are represented by a lawyer. The lawyer will send your case details to the settlement lending company. The company’s experts in personal injury cases will review the case, and if they find that the case has potential, they will approve the loan. You have to pay the loan back only after the case is settled. Your lawyer will make two cheques, one for the settlement lending company and one for you.
- The amount of loan that you can receive varies; it is dependent on the expected settlement/judgment’s value. Usually, it is 10 to 15% of the expected amount. It is always recommended that you take only as much amount of money as you really need, even if you are offered a lot of money.
- A personal injury loan is considered as a non-recourse loan. That is, if the case is lost, then the plaintiff will not have to pay the loan back. For the settlement funding company, it will be a complete loss. Hence, the interest rates of personal injury loans are typically higher than rates of commercial loans. It is important that you understand about the interest rates, fees, and about any other hidden rates before you opt for the loan. Also keep in mind that a personal injury case can drag on for months or even years accruing interest.
- Even if you have a bad credit score, you can still get a settlement loan. The only thing that matters for a settlement lending company is the potential of your case.
- Prior to litigation funding, many plaintiffs had to settle their cases for an ‘unfair’ amount because of the fact that the defendants were people or corporate with deep pockets, and they dragged the cases as long as possible to put more financial stress on the plaintiffs. Settlement funding actually helped to level the playing field for the plaintiffs.
A personal injury loan can not only help you to get quick cash for your bills but also to get a fair settlement as well.