Everywhere you go where land transportation is a primary need, road safety comes paramount. There are always measures, laws, systems, and methods in place in order for travelers or car owners to travel safely on land. However, no matter how strict and proactive these measures are, accidents still happen.
In the United States alone, more than 4 million people get injured from road accidents that require medical attention, while some 38, 000 end up in tragic death.
Accidents like these set grounds for messy lawsuits to be filed which may take a long time to be settled. This of course will take into consideration the circumstances of the accident including the injuries sustained, whether it be serious or just scratches. Thus, plaintiffs might need extra help like in the form of car accident lawsuit loans.
What is a Car Accident Lawsuit Loan?
Settlement loan is a very common type of loan that is usually involved in most legal proceedings. Since car accidents are very common in the United States, lawsuit loans for car accident settlement have become one of the most in demand settlement loans in most loan companies.
However, although it is called a loan, the car accident loan can be differentiated from how an actual loan works. Generally, a regular loan requires some type of repayment depending on the agreed upon terms of the parties involved. But in this car accident loan, it is quite different.
In this case, loan companies will give you the amount of money you need in whatever reason you need it for. Taking for consideration that you were involved in an accident, you are probably in need of financial help for the incurred medical bills. Plus, you might not even have the capacity to work because of your injuries so the source of money will be a problem for you.
But you may wonder that since repayment is already out of the equation, how does the loan company get paid from the money they loaned to you as a plaintiff? Well, the only way they can be paid is if you win or get your future settlement from the legal proceedings. The way this works is the loan company gets a portion of your future settlement.
At the onset, some plaintiffs may think that this loan is too good to be true, that it may be a type of scam. A loan company not requiring any type of repayment may sound absurd to some people. But this should not be the notion because this is a real existing loan that is trusted and widely taken.
Just think of it in a way where the loan company is pretty confident on the result of the legal proceedings that they are willing to do a pre-settlement loan to you. You may even say that it is some type of financial assistance after the car accident you were involved in. Plus, there are really no hidden fees that you have to worry about.
How Does it Work?
Requirements for this loan are actually pretty easy to accomplish. Paperwork will not be a daunting task.
In most funding companies, the important things you just need include being in the legal age of at least 18 years old, having an attorney on a contingency basis, and a valid legal car or auto accident claim. Most of the time, credit and employment history are also not a requirement in the application and assessment.
In contrast with other types of loans out there, processing for this is actually very quick. This is one of the few loans that can be processed and awarded to you within just 24 hours.
But what if you lose the case in the future, do you still have to pay the funding company? The answer is no. As mentioned earlier, there is no repayment needed other than a portion of the supposed settlement from the case. So if ever you as the plaintiff loses the case, there is no need for any payment. At the onset, the funding company already assesses your legal claim against an individual or insurance company. They are pretty sure on your legal victory that they are very willing to loan you a non-recourse funding.