Are you pursuing a lawsuit for the injuries or damages you sustained? If yes, then the chances are that you are drowning financially. This is mainly because you will have to pay for your medical bills, household expenses, and legal fees while your case is in court. Since lawsuits can take years to complete, these challenges can be quite overwhelming.
Whenever you are in such a situation, going for pre-settlement funding might be your only option of getting funds quickly as you wait for your compensation package. A pre-settlement loan comes with numerous benefits. However, it also comes with different challenges if you don’t settle for the right lender. Therefore, it is of paramount importance to ensure that you only go for pre-settlement funding if you have no other option.
While the option of getting some money upfront might be tempting, you should first find out whether your situation calls for a lawsuit loan. Remember that what happens to a settlement loan afterward depends on the nature of your agreement. Here are situations where you will be justified to get a pre-settlement loan:
Loss of Wages
The vast majority of lawsuits are as a result of severe physical injuries due to an accident. In many cases, mild injuries might get you out of work for days or even weeks. However, severe injuries can last for months or years, meaning that you will not go to work or go in a reduced capacity. Whenever you don’t have a source of income due to the injuries sustained in an accident, it will be a good idea to go for a lawsuit loan.
Depleted Savings
The savings account culture has become the norm in today’s society. Many people think that if they save enough money, they can overcome any challenge that comes their way. This is not to say that saving money for future unplanned events is a bad idea. However, all it takes is waiting for a prolonged lawsuit settlement without any source of income to deplete your savings account. Regardless of the amount of money you’ve saved in your account, the chances are that you will use it all before your case settles, and with no other source of funds, you will have to source funding from somewhere.
If you find yourself in this situation, you will be justified to look for a pre-settlement loan. It doesn’t mean that you should allow yourself to suffer just because your savings are depleted. In fact, it’s essential to apply for a pre-settlement loan whenever you have enough savings to last you for a month.
To Pay Hospital Bills
As mentioned before, a lawsuit is typically filed whenever you have suffered severe injuries to your body. Depending on the nature of your injuries, you may have to be hospitalized for months or years. At the same time, you may be discharged, but you will need regular medication and therapy, which can be utterly expensive.
You may argue that your health insurance will cover all your medical costs. Although this might be the case, you should remember that health insurance covers specific treatments and medications. Due to your injury’s nature, your health insurance might not be able to cover your treatment. For instance, most health insurance covers don’t cover different outpatient treatments, such as physical therapy. You will have to dig deeper into your pocket to fund your hospital bills in such a situation. This doesn’t have to be the case, though. You can always apply for a pre-settlement loan whenever you have mounting hospital bills.
The Bottomline
Just like any other loan, getting lawsuit funding is relatively easy. However, depending on your contract terms, you will have to pay for the loan through your compensation, with interest. Therefore, you should always avoid going for a pre-settlement loan if you don’t need one.
