Most people, even those who are injured because of negligence, really don’t understand what personal injury loans are or how they work.  If you have been injured in a car accident or in any way that was due to negligence, you may either be involved in a lawsuit or waiting for the insurance company to come to a fair settlement.  Either way, your financial situation is becoming a bit stressful, and you find it’s getting difficult to pay the bills.  Personal injury loans are ideal in this situation, as you can get the money you need to pay household bills, medical expenses and other obligations right away.

Unless your injuries are not serious (strains, sprains or only minor soft tissue injuries), chances are you will qualify for a loan.  Personal injury loans are actually a cash advance given against a pending settlement or jury award to those who sustain bone fractures, spinal injuries, facial lacerations, broken bones and other serious injuries in an accident caused by another party.  This money can be used to meet your financial obligations while you are waiting on your money, which could be weeks, months or even longer.  Many injured victims face foreclosure or bankruptcy because they simply run out of money due to medical expenses and no income if they cannot work due to their injuries.

The application process for litigation funding is a simple one that requires only information regarding your accident and resulting injuries. You will not be asked about employment status or other background information.  It makes no difference if you have perfect credit, or no credit at all.  In order to be approved for personal injury loans, the funding company wants to make sure you have a solid claim which will likely win.

Do you have to make monthly payments to repay the loan?  No.  You repay the advance, along with small fees and interest, when you receive your settlement or jury award.  This way, you are never out any expense out of your own pockets.  When you receive your settlement or jury aware, you simply repay the loan, fees and interest at that time, and keep the remaining money for yourself.  Because settlement funding is non-recourse, you will not repay the money advanced to you if for any reason you do not win your lawsuit or insurance settlement.  You are essentially at no financial risk of going further into debt.

How much money can you expect with personal injury loans?  In most cases, litigation funding companies will advance approximately 10% of your expected settlement, so if you expect to receive $70,000 your advance will be about $7,000 if approved.  Now that you understand how the process works, talk to your attorney about whether an advance would be beneficial in your situation.

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