You may be in an accident due to another party’s negligence. Let’s say you are driving to work. Another driver decides to ignore the red light and rams into your vehicle.
From the accident, you suffer some serious injuries. Several things immediately come to mind. You can be sure of significant medical expenses. You will not be able to work, meaning lost wages. Yet daily expenses will continue to pile up as usual.
What you may not know at the time of the accident is that you can file for a personal injury claim. And you also have the option of applying for a personal injury loan to help you during the litigation process. We will provide clarification as we explore the topic above in detail.
In this article
Personal Injury Lawsuits: What Are They?
Any harm to the person’s body, emotions, or reputation can be considered a personal injury. As the injured party, you can seek monetary compensation from whoever caused the damage. But, there are three critical considerations your legal team may need to prove.
- Negligence is the inability to behave with the level of care that an ordinary person would. The other driver’s inability to observe traffic rules is an example of negligence.
- Strict liability holds a defendant liable without regard for his mental state or intent at the time of committing the accident. A good example would be product liability, which places the manufacturer at fault in case of an accident. Let’s say the defendant in the car accident says the brakes did not work, resulting in running the red light. The personal injury lawyer can go after a car manufacturer. In this case, the defendant did not have the intent to act negligently. But they are still liable under the strict liability clause.
- Intentional wrong includes assault and battery, false imprisonment, trespassing, and intentional infliction of emotional distress.
Personal Injury Loans
Any litigation will cost some good money. Paying the legal team and court expenses can take a considerable bite out of your income and cash reserves. Yet, as we stated in the introduction, there are other expenses that you need to take care of. It is common for individuals facing litigation to need some financial help.
You can get those in the form of personal injury or pre-settlement loans. A car accident lawsuit loan can help take care of expenses during the trial. The lending company will give you a cash advance on a contingency basis. That means you pay back the principal plus interest from what you receive as settlement.
Another reason why pre-settlement or personal injury loans are such relief is that they are non-recourse. That means you only pay back the lending company if the case settles in your favor. If your team loses, no one gets anything.
You must go through some steps when applying for a pre-settlement loan. The most critical is to hire a personal injury attorney. You must have one before the lending company can give you the cash advance.
To understand how it works, allow us to describe the application process. With online lending platforms, all you need to do is to fill in the application form.
The lending company will go through the details and ask you relevant questions. They will also contact your attorney for additional information. Please remember the collateral in personal injury loans is the case’s outcome.
The company will not give a cash advance if you do not have a good case or the chances of winning are low. They will get all this information from your lawyer.
Police Involvement in Personal Injury Loans
One of the first things you do at an accident scene is to call the police. They will assess and document their findings in a report.
The report will eventually go to your lawyer because it provides critical information on liability. The police findings will determine whether the other party was at fault or not. If greater liability is on you as the plaintiff, the chances of winning the case reduce. So, the lending company will want to see the police report as they determine whether to give you the loan.
But, beyond that, there will be no need for police involvement in your pre-settlement loan application. Indeed, your personal injury attorney has the most significant role in helping you get the funding. That is why you should advise your attorney before applying for any pre-settlement cash advances.
What You Should Know About Personal Injury Loans
Once you qualify for a personal injury loan, you can use the money as you wish. Your attorney and the lending company do not have the right to tell you what to do with it. Most people who apply for such funding are usually in financial trouble because of the litigation process. Such money can take care of daily living expenses. You can keep up with monthly obligations like credit card payments or mortgages.
Please note the following about personal injury loans.
- It is a cash advance that you will pay back once you get the settlement.
- The lending company bases the amount they give you on the case value. Different companies have different rates. It can range anywhere from 10% or more of the final settlement.
- Be wary of the interest rates the lenders apply. Compound interest is very expensive, so always opt for simple interest lenders.
- The lending company should be upfront about any other fees you will be liable for. If they’re unwilling to give you a transparent quote, consider moving on.
- Your personal injury lawyer cannot give you a pre-settlement loan. Giving a client a cash advance would be a conflict of interest and a legal and ethical violation. But, the firm can pay for litigation on court costs and recoup its cash from the settlement.
Do not go through financial stress during your personal injury claim process. Applying for a pre-settlement loan can provide financial relief. It allows you to keep up with payments that would be beyond your capacity to handle at such a time. Your attorney will play an instrumental role in helping you get the financing.
The police involvement will not go beyond the reports they took at the accident scene. The lending company uses such information to determine liability and the extent of damages. They also use this information to confirm if they have a winning case in hand.