When you’ve been injured due to another person or company’s negligence, a lot of costs can be incurred. The costs of doctor’s appointments, hiring a lawyer, and going to court can all quickly add up. When this is combined with a loss of income, the results can be financially devastating.
The settlement you’ll potentially receive can feel like the light at the end of the tunnel. But what can you do about the funds you need now?
Lawsuit advanced funding could be the answer to your financial problems in the short term. Continue reading to learn what a lawsuit advance is. Also, learn the answers to some frequently asked questions people have about these advances.
What Is Lawsuit Advanced Funding?
Lawsuit advanced funding is where a portion of your potential settlement funds are fronted to you. Since settlements can take a long time, many use these loans to help pay for the things they need in the meantime. Many use advanced funding to help pay for medical bills, lawyer costs, and more.
Frequently Asked Questions
Many people have questions about lawsuit advanced funding. Some FAQs are answered below to help you better understand this loan option.
Is There Interest on Lawsuit Advances?
Most companies charge a small interest on lawsuit advances. A few companies don’t charge interest. It’s essential to read the details of your agreement with the lender.
Who Is Eligible?
Eligibility requirements vary from one provider to the next. The most basic requirements include having a lawsuit settlement pending, being an American citizen, and being over the age of eighteen. In some places, applicants must be over the age of 21.
What Can Lawsuit Advances Be Used for?
Lawsuit advances can be used for anything you want. Generally, it’s recommended you use the funds for essential things until your full settlement comes through. A few examples of “essential” things you may want to use your advance for include:
- Paying bills
- Paying medical bills not covered by insurance
- Gas costs to doctor’s appointments and court dates
- Groceries and other household necessities
What Happens if You Don’t Get a Settlement?
In some cases, you may lose your lawsuit and not receive the settlement you were counting on. If you’ve gotten a lawsuit advance, you’ll want to speak to your provider. The way this situation is handled varies from one provider to the next but is usually detailed in your funding agreement.
Do You Have More Questions About Lawsuit Advanced Funding?
Lawsuit advances may not be the best option for everyone, but they can be helpful for many. You can use the information above to help decide whether an advance on your settlement is the best option for your financial struggles.
Do you have more questions about lawsuit advanced funding? Or want information on other potential funding types?
Browse our other blog posts. You’ll find plenty of other posts on this and closely-related topics to help you learn more on the subject today.