Can I Get a Cash Advance on My Personal Injury Settlement?
Personal injury lawsuits can take a substantial amount of time, even when a case is strong and backed by solid evidence. If your injuries are severe, you might be facing some hefty medical expenses and are unable to work until you recover, which can put you in a tight financial position.
Many accident victims wonder if it is possible to get a cash advance on their settlement during this time, which they hope to pay back with their settlement award. However, law firms are legally and ethically prohibited from providing cash advances or loans on settlements. No matter who you choose to work with, the law does not allow your attorney to give you a cash advance on your settlement.
In some cases, attorneys might refer you to companies who provide these services, but be cautious about pursuing this type of loan or cash advance. The interest rates are unconventionally high and often unfair to consumers.
The Disadvantages of Lawsuit Loans
As much as you might need the cash, getting a cash advance or a lawsuit loan on your settlement might not be in your best interests. Generally, when you pay back your lender, you will pay back a funding fee or interest payment, in addition to the principal amount you owe. You could potentially pay back triple the amount you borrowed for the lender. Keep in mind that lawsuit loans are not regulated like most loans. With fewer restrictions, lawsuit funding companies have more freedom to charge exorbitant fees for their services.
Additionally, because these services are not heavily regulated, finding a reputable lender will be challenging and you might not find a company that will treat you fairly. Even if you do manage to find a reputable lender, not all lawsuits qualify for loans. Since you will only have to pay the lender back if you win, lenders only provide loans when they are confident you will be able to recover compensation. If you win less than the lender anticipated, you will also not have to pay back the full amount, which is why it is often a difficult task in itself to find a reputable lending company.
Contact an Experienced Personal Injury Attorney at The Fran Haasch Law Group Today!
If you were injured in an accident caused by someone else’s negligence, you need an experienced personal injury attorney on your side to help you obtain the compensation you deserve. At The Fran Haasch Law Group, our team is backed by more than two decades of experience and a history of proven success. We are also aware that this may be a financially difficult time for you, which is why we provide our services on a contingency fee basis, so you can focus on recovering from your injuries while we handle the rest. If we cannot win your case, you will not owe us any legal fees.
Call our law office today at (727) 784-8191 to learn more about your legal options. We offer free case evaluations. We are available 24/7 to take your call.