If you become a victim of an automobile accident, auto settlement loans are cash advances that provide you with the funds you need to help pay for medical bills as well as other expenses that are associated with the accident as you wait until your lawsuit is resolved and settled. Also known as a lawsuit advance or as a pre-settlement funding, auto settlement loans need not to be repaid in the event you don’t win your case.
Considering Auto Settlement Loans
When you get into an automobile accident, auto settlement loans provide you with the funds you need in order to pay for living expenses, especially when the accident has rendered you unable to work, as you wait for the outcome of your lawsuit settlement. While you are allowed to make use of the cash advance for just about anything, individuals usually use the funding for their most basic needs up until their case is all sorted out.
As mentioned, auto settlement loans aren’t exactly loans but rather are cash advances. If you do not win your settlement case, then you don’t receive any compensation. Good thing is that the auto settlement loan you have applied for from a legal funding company, which most likely you have already received and used, need not to be repaid. On there hand, if you win your case, you will have to repay the auto settlement loan which will be taken from the compensation you will be receiving.
Since there isn’t any assurance the funder or legal funding company will get back its money, they do their research on your case as well to check if it has a strong and chance of winning. Also, regulations and policies that are true to a standard loan may not be applicable to an auto settlement loan.
Easing Financial Burdens With Auto Settlement Loans
When you apply for an auto settlement loan for a legal funding company, this will greatly help in lessening the financial burden brought about by the accident by providing you with immediate funds to pay for immediate costs. While this is something to consider, do note that there are certain fees as well as interest rates that apply, which can be drive up cost. Hence, this type of loan is usually a last resort when all other options aren’t possible or available.
A car accident can be very costly. If you don’t have the financial means to manage some or all of the costs due to the accident, auto settlement loans can help you pay for your legal costs, medical bills as well as your usual daily and/or monthly expenditures, such as groceries, rent and other household bills, while you wait for the payout of your settlement and recovery from your car accident injuries. All these costs and expenses can indeed be overwhelming and devastating, where 90% of costs on medical bills due to automobile accidents are approximated to occur and add up in the first 18 months (1.5 years) of the accident. As such, an auto settlement loan is designed to ease this financial burden.