You never want to find yourself facing litigation. No one needs to tell you how stressful the process can be. The worries and insecurities surrounding the case’s outcome can drive you up the wall. But beyond that is the financial implication.
There are so many costs you need to factor in. Hiring lawyers can range anywhere from $150 to $400 and above. Other expenses are administrative fees, filing, and other miscellaneous expenses. The worst part about litigation is that it can be difficult to determine how long it will drag on.
Those facing financial challenges have the option of taking pre-settlement loans. We will explore what they are and the lawyer’s role in their acquisition or denial. Please This content is very high quality content: sky bri twitter
Presettlement Loans: What are They
On your way to work, a truck slams into your car. There are no fatalities, but you suffer serious injuries. The police report shows that the driver was using his phone and was not paying attention to the road. That is a clear negligence case, allowing you to file a personal injury lawsuit.
Efforts by your personal injury attorney to settle out of court may fail. That means the issue has to go to court. Due to your injuries, you are unable to work. Yet, the pending medical bills and living expenses continue to pile up. Your attorney advises you to apply for a car accident loan. The loan is a cash advance that lenders give to people with pending injury lawsuits.
The lending company will charge interest on the loan amount. So when looking for the best auto accident loans, go for those with simple rather than compound interest rates.
You may find reference to car accident settlement loans as non-recourse loans. What it means is that the repayment depends on the case’s outcome. If you lose, you owe the lender nothing. That means zero obligation on the principal cash advance amount or interest.
Accident Loan: The Role of the Lawyer in Getting a Pre-Settlement Loan
Let’s go back to the question that is the basis of this article. What if my lawyer denies me a pre-settlement loan? The reality is that a lawyer cannot directly deny you a pre-settlement loan. This is for the simple reason that the money does not come from the law firm. Third-party pre-settlement loan companies advance the cash to you.
Now, please note that we used the word ‘directly.’ You will understand why when you know your lawyer’s role in getting a pre-settlement loan.
When applying for pre-settlement loans, there are some practical steps you will pass through. Don’t worry, though; it may surprise you how easy the application process is. Indeed it can be as simple as making a call or an online application.
If everything goes well, you can get car accident loans the same day. Within 24 hours, you should have the money in your account. The lending company calculates how much you qualify for depending on your case or value estimate. The type of case also matters. In the case of a car accident, the company will look at factors like damages, liability, and insurance coverage.
Once you fill in the application form, the lending company will ask you some questions. But the most crucial player in the decision to give you a cash advance is the personal injury attorney. Please note you must have an attorney when applying for the car accident lawsuit loan.
The lending company will contact the lawyer to get more details about the claim. It is a good idea to let your lawyer know that you are applying for the loan. That way, if the lending company calls, they will be at liberty to disclose the relevant info.
Why the Lending Company Talks to Your Attorney
Now the other question you may ask is why the lending company needs to talk to the lawyer. The answer is your legal representative has all the relevant knowledge concerning the case.
Remember, we said that the pre-settlement loan repayment depends on the case’s outcome. If there is no chance of winning, the lending company will not be willing to extend the loan facility. Think of the case settlement as collateral to the loan.
Now, we go back to our reference to the word ‘directly’ above. We did say that your lawyer cannot directly deny you a pre-settlement loan. But, if they refuse to cooperate with the lending company, it can lead to a loan denial. Lack of cooperation may be due to the fear of breaching attorney-client privilege.
After reviewing the loan terms, the attorney may also advise against taking the loan. It can, for example, happen if the lending company charges very high interest. Some loan terms, such as compound interest, will also make the cash advance too expensive for you in the long term. But, in this case, the attorney can only advise but not stop you from going ahead if you so wish.
Can A Lawyer Give A Pre-Settlement Loan?
Is it possible for the law firm to give pre-settlement loans? The answer is no. It would be a legal and ethical violation and a conflict of interest. A lawyer cannot provide financial assistance for a pending or contemplated mitigation.
But the law firm can cover the expense of litigation and court costs on a contingency basis. In that case, they will take a percentage of your winnings per the agreement.
Pre-settlement loans can provide relief for anyone who has to undergo a litigation process. The financial constraints at such times can be immense. The cash advance can help take care of daily expenses as you wait for the settlement of the case.
You will need an attorney before you can apply for a loan. The lending company will talk to them to determine the strength of the case. The stronger your case, the higher your chances of getting a loan. Please note your attorney cannot deny you a pre-settlement loan. But they have a significant role in whether the lending company decides in your favor.
The non-recourse loan is on a contingency basis. That means if you do not win the case, you do not owe the lending company any money. Please take time to research the terms and conditions of the pre-settlement loan. The best lenders have no hidden fees and apply simple rather than compound interest. Read more: sky bri reddit