In the grand scheme of life, car accidents have become a common occurrence. Depending on the severity of the accidents, injured victims of car accidents, including passengers, have to confront many challenges.
For instance, those who have incurred physical injuries have to consult medical practitioners and seek medical treatment. Similarly, car accident victims undergo pain and suffering.
Motor vehicle accident victims such as passengers, or drivers are entitled to initiate legal proceedings against the party at fault. However, it takes a reasonable amount of time for the courts to finally decide a case.
During this duration, injured victims have to pay medical bills and other important expenses.
The good news is if you are a passenger who was injured in a car accident, you can apply for a lawsuit loan. Since most passengers of car accidents have meritorious claims, they have a higher possibility of getting approved for a risk-free lawsuit loan.
Here, we will discuss this viable financial option, the concept of pre-settlement funding, and its significance for car accident plaintiffs.
What are car accident lawsuit loans?
Pre-settlement lawsuit funding or a lawsuit loan is a non-recourse financial agreement between a pre-settlement funding company and a claimant.
Lawsuit loan companies approve funding for meritorious car accident claims only. In general, a passenger in a car accident has a higher probability of qualifying for a lawsuit loan.
Because the non-recourse financial agreement between you and the pre-settlement funding company is not a loan in the traditional sense, you are not legally bound to make any payments until you win your case.
Conversely, a lawsuit loan is a risk-free financing option for car accident victims. That means you will have to pay the amount you received (plus the interest charges in the agreement) after you receive monetary compensation. If you fail in your lawsuit and the court did not award any settlement or award, you are not liable to pay anything back.
However, by approving non-recourse legal funding, the company takes a high risk because the repayment of the loan is conditional on the success of your case.
How does the pre-settlement funding approval work?
Lawsuit loan companies will consider your claim and the probabilities of the success of your lawsuit by closely working with your attorney. If the lender is satisfied that your case has a higher probability of winning, they will approve your pre-settlement funding application.
In order to obtain an advance from your pending car accident claim, it is important that your lawyer is on board and they sign on the terms of the agreement of the funding company. Only then will a lender provide you with a settlement advance.
Why should a car passenger consider a lawsuit loan?
Challenging financial situations can be daunting as they may increase your stress and affect your recovery process. The reason why the pre-settlement funding option is a good idea is to avoid stressful situations such as:
- You are a car accident victim and have incurred physical injuries in the accident that need medical treatment, which can be very expensive.
- You don’t have the financial means to pay your medical bills, and the due dates are getting closer.
- You have to confront harassing phone calls to pay rent or other bills.
- Your injuries do not permit you to continue your employment; you may be worried about your daily costs.
In short, pre-settlement funding (or a lawsuit loan) helps you confront the financial burdens you face during the pendency of your lawsuit. Additionally, a lawsuit loan can help you give your attorney the needed time to fully prepare your case and get the best settlement.
With pre-settlement funding, you can get the weight of bills and deadlines off your mind and focus on your legal case and recovery. Once your legal matter resolves and you receive the settlement or award, you can pay back the funding you received.
Car accident passengers who need a lawsuit loan can take steps to try to get approved for one by applying with Baker Street Funding.
Applicants could also come back for additional funding when needed.
If any other lines of legal funding are open with another company, upon approval, Baker Street Funding will pay those balances down, consolidate the loan for a better rate and buy it out. It’s only a good idea to close those loans if high fees and interest rates that are not worth it are involved.
Get 2.95% to 3.4% non-compounding monthly interest rate on your lawsuit loan and get on with your financial liabilities with Baker Street Funding today.