How to Determine If You Need a Lawsuit Loan After a Car Accident

After a car accident has left you with injuries thanks to the other driver’s negligent actions, you may have contacted an attorney about filing a personal injury lawsuit. It is the logical step accident victims take when they want to recover compensation for the financial losses they’ve incurred from their injuries.

Once you consult an attorney they will let you know if you have a valid personal injury case. However, it may be a while before you get to see that money. This is precisely why many people get car accident settlement loans to help them stay afloat until the case is either settled or won at trial.

What Factors Make Your Car Accident Case Valid?

Most attorneys won’t take a case if they think that it’s weak. During the initial consultation, they will consider if the accident was caused by someone else, if the other party was careless, and if you sustained injuries.

If they take your case, they will start the lawsuit process. It may end with a settlement or go to a trial. No matter the outcome, it is going to take some time before you receive your compensation.

While most car accident cases will be settled out of court, it may take months of negotiations before both parties agree on the settlement amount. In the meantime, you will be racking up more bills. Serious injuries will also mean you’re unable to work for a while or ever again, further straining your financial situation.

Even though you may have a valid case, you might wonder if using a lawsuit loan is the right move while you navigate the legal process.

When to Consider Getting a Car Accident Lawsuit Loan

While car accident lawsuit loans can be extremely helpful, they aren’t necessary for every situation. The best way to determine if you need a loan is to consider a few key factors.

Your Injuries Are Serious

Perhaps the last thing you remembered was driving down the road and you woke up in the hospital. You may have spent days or weeks recovering after enduring multiple surgeries. When you have severe injuries that will take a long time to heal or that will permanently change your life, a lawsuit loan can be extremely helpful by providing you and your family with the money you need to prevent you from drowning in debt.

You Can’t Go Back to Work

Some car accident victims will be able to return to work at some point, but if it’s going to be a while or you can never return to your job in your former capacity, this loan is for you. Your serious injuries mean you have major medical expenses and without any income coming in until you receive your compensation, you will need to find a way to get the money you need now.

The Insurance Company Is Taking Its Time

Your lawyer may feel good about getting a proper settlement from the insurance company. However, the company may take its time processing paperwork or going back and forth with your attorney about the settlement amount. As the process drags out, you’re still accumulating bills and not bringing in any income.

Your Injury Expenses and Regular Expenses Are Adding Up

One of the biggest indications that you need a lawsuit loan after a car accident is when you have extra medical expenses and your regular household bills. You will still need to pay your mortgage or rent and other bills such as electricity, phone, car payment, internet, and more. Your family also needs food on the table as you wait for the lawsuit to finalize.

If any of these factors apply to your situation, you may need a lawsuit loan after your accident.

How Can You Use This Accident Settlement Loan Money?

When you’re injured and unable to work, getting an accident settlement loan is a great way to mitigate your costs. You can use these funds in any way you choose. That means you can take care of any day-to-day expenses along with your accident-related costs.

Many car accident victims use pre-settlement funds to pay for their medical treatments and prescriptions. They also use them to cover the cost of their rent or mortgage payments, utility bills, car payments, insurance premiums, and buying groceries. Another expense that you can cover using this loan is the replacement or repair of your vehicle.

What to Know About Repaying Your Auto Accident Settlement Loan

Lawsuit loans for car accidents are different from a loan you’d take out with your bank because it’s a financial advance known as a non-recourse loan. Basically, you’re getting some of the money you’re expected to recover from your car accident settlement in advance.

In other words, it’s not the same as lending you money that will need to be paid back. This differs from recourse loans, which require you to pay the entire sum back to the bank. With a recourse loan, you’d be stuck paying back twice the original amount borrowed, or more, even if you did not get the compensation you expected.

Lawsuit loans don’t require you to repay them. Your attorney will take over when you receive your payment for the settlement claim and then send an agreed-upon sum to the funding company. It’s a risk-free way to start using the money you’re owed from the liable party when you need it most.

If you need money while awaiting the settlement of your car accident case, a lawsuit settlement loan is a risk-free way to get out of your financial woes. You won’t be subjected to the same lending laws as traditional loans and are not required to pay it back if your case isn’t successful.

It is required to have an attorney to secure your pre-settlement loan but your attorney does not need to approve your decision. Instead, it may be wise to discuss this option with them to make sure it is right for you.