You never leave your house thinking that you will get into an accident. But sometimes, it may happen, and the fault could be someone else’s. Research shows that over 3,287 deaths are due to auto accidents every day. That translates to over three million global fatalities every single year. Now factor in another 20 to 50 million car crash injuries to understand how bad the situation is.
What happens if you find yourself in the unfortunate situation of being in a road accident? There are some critical first steps you need to take care of. These include calling the police and seeking medical treatment. Indeed even without any physical signs of harm, you should still see a doctor. Some underlying injuries can take time before they start to show.
If the accident was the other party’s fault, you can sue for personal injury. The aim is to get financial compensation for the injuries you sustain. It is crucial that you engage the services of a personal injury attorney.
Look for an attorney with litigation experience. If you cannot settle the case out of court, you want someone who can defend you in front of a judge and jury. Please note some lawyers may not have the relevant litigation experience.
The other worry you may have in the post-accident time is finances. We will share a fantastic solution in the form of pre-settlement loans.
What Are Pre-Settlement Loans?
Managing the day-to-day financial obligations during litigation can be difficult. Due to the injuries, you may be out of work, thus loss of income. The expenses of a trial can also run on the higher side.
You can find financial relief by applying for an accident loan. The lending company will give you a cash advance that you can use as you wish. If bailing you out of a tough financial situation is not good enough, there is more to the car accident loans.
You see, the advance is a non-recourse loan. So, if you don’t win the case by a stroke of bad luck, the lending company gets nothing in repayment. You don’t have to worry about the stress of the principal amount plus interest.
But, please, take note of how they charge interest. Compound interest can drive up the principal amount quite a bit. And since you don’t know how long the case will take, you could end up with a very high loan amount to repay. It will take a big chunk out of your settlement, leaving you with little to show for your efforts.
What You Need To Do To Qualify For a Pre-Settlement Loan
Your attorney has advised on the need to take the auto accident case to trial. The other party was not open to an out-of-court settlement. But, your cash reserves have run out, and the pre-settlement loan looks like a pretty good option.
Before starting the application process, you must meet some specific conditions to qualify.
- Pending litigation: You must have a valid car accident claim to qualify for a loan. This is because the money you get from the settlement will go towards clearing the loan.
- Age: you must be 18 years and above to apply for the injury loan.
- Attorney: You must have an attorney for loan application to get approval.
- Cash limit you can get: The lender looks at several factors when determining the amount you can qualify for. One of the critical factors is the value of the case. The company will take a percentage of what you will get in the settlement. Other factors also contribute, including liability, damages and insurance cover.
How to Apply For an Auto Accident Pre-Settlement Loan
Now that you know the qualifying criteria let us look at the process of applying for a car accident loan. Different lenders have their unique application processes. Most times, it is pretty easy and does not need too much time on your end. All you need to do is log onto their online portal and fill in the relevant details.
The lending company will go through the application form. Be ready to answer some questions and provide supporting documentation where necessary. The company will also reach out to your attorney. That is why we said one qualifying criterion is to have an attorney.
The lawyer will furnish the company with further information. This part of the process is critical for one reason. It will let the lending company know whether you have a strong case or not. Sometimes, the company may determine that the claim does not have merit. That means that the likelihood of winning is quite slim. In that case, they may deny you the cash advance.
Your lawyer can also refuse to cooperate with them. One reason could be the fear of breaking the lawyer-client confidentiality. It is essential that you advise your lawyer if you plan to apply for a pre-settlement loan first.
A good lawyer will look at the lending company’s terms. Some of them will have very high-interest rates. They may also have other accompanying fees that they do not disclose upfront.
Please consider it of utmost importance to do proper due diligence on the lawyer you want to hire. They should have your best interest at heart and not be in a hurry to settle the case because it is convenient for them.
Once the company approves your application, they will send the money to your account. In the best-case scenario, within 24 hours, you can have the cash advance.
If you are using for an auto accident, you can qualify for a pre-settlement loan. But, other factors come into play, as we have shared above. You must be 18 years, have a lawyer, and have filed an auto accident claim.
The cash advance can help you keep afloat during stressful litigation times. Yet it doesn’t add any financial burden to you because repayment depends on the case’s outcome. Do proper due diligence on the lending company. Finally, go through the accident loan terms and conditions with a fine-tooth comb.