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Personal injury cases can be costly. The medical bills, lost wages, and legal expenses can add up quickly, leaving many accident victims in dire financial straits. This is where personal injury cash advances come in.
Personal injury cash advances, also known as lawsuit cash advances or settlement funding, provide accident victims with the money they need to cover their expenses while they wait for their lawsuit to be resolved. In this article, we will explore the ins and outs of personal injury cash advances, how they work, and their benefits and drawbacks.
A personal injury cash advance is a non-recourse loan given to a plaintiff in a personal injury case against an expected settlement or judgment.
Non-recourse means that if the plaintiff loses the case, they are not responsible for repaying the cash advance. The only collateral necessary for the advance is the future settlement or judgment. This means that the advance company takes a risk by giving money to the plaintiff, and they may not get their money back if the plaintiff loses the case.
The process starts with the plaintiff finding a cash advance company that specializes in personal injury cases. Once the plaintiff's attorney has filed the lawsuit, the cash advance company will review the case to determine the likelihood of a favorable outcome.
If the cash advance company decides to proceed, they will offer the plaintiff a lump sum of money based on the estimated value of their case. The amount offered may be a percentage of the expected settlement or judgment, but it varies based on the case's specifics. web cash manager popular.
The plaintiff then signs a contract agreeing to repay the advance with a certain percentage of the future settlement or judgment if they win the case. This percentage is generally between 10% to 50% of the settlement, depending on the case's specifics. web cash manager popular.
Once the plaintiff accepts the advance, the cash advance company will wire the money to the plaintiff's account within 24 to 48 hours. The plaintiff can use this money to cover their expenses while they wait for their case to be resolved.
Personal injury cash advances have several benefits for the plaintiff:
If you are injured in an accident and cannot work, you will likely face mounting medical bills, lost wages, and other expenses. A cash advance can help cover these expenses until you receive your settlement or judgment.
Because personal injury cash advances are based on the future settlement or judgment and not on the plaintiff's creditworthiness or employment, there is no credit check or employment verification required.
Personal injury cash advances are non-recourse loans, meaning that if you lose your case, you are not responsible for repaying the advance.
Personal injury cash advances do not require any upfront costs. quality loan services. The cash advance company will only collect their fee if you win your case.
Personal injury cash advances have several drawbacks:
Cash advance companies charge high fees for their services, usually between 10% and 50% of the settlement or judgment. This can be a significant expense, especially if the case takes a long time to resolve.
Some types of personal injury cases, such as workers' compensation cases, may not qualify for personal injury cash advances.
If your case takes longer than expected to resolve, you may end up owing more in fees than you received in the advance.
If you have other sources of funding, such as insurance or savings, you may not need a personal injury cash advance.
Personal injury cash advances can be a useful tool for accident victims who need help covering their expenses while waiting for their case to be resolved. However, they also come with risks and high fees. Before deciding to take out a personal injury cash advance, it is essential to consider all your options and consult with an experienced personal injury attorney.