If you’ve ever been involved with a legal case, you know how expensive they can potentially get. So what happens when you’re in a lawsuit and don’t have the money to keep pursuing it, but know that you should stick with it for justice’s sake? You’ve come so far, but your living expenses, bills, and perhaps even medical costs are racking up, and you simply can’t afford to keep pursuing the case and paying your attorney. It seems like a shame to give up and walk away from what you’ve worked so hard to attain. Luckily, there’s another alternative you can explore with your lawyer. Applying for a pre settlement loan from a pre settlement loan company can help you get through the last stages of your civil case with peace of mind. These are mostly used with personal injury cases, where the defendant knows that he or she will probably be awarded a large sum of money as reparations for the accident.
What Are Pre Settlement Loans?
Your lawyer may even suggest that you contact a pre settlement loan company as a solution to your current financial woes. Essentially, a pre settlement loan company will go over your case and reach out to your attorney with a contract to purchase a portion of your predicted settlement. You and your lawyer will review the contract and if everything looks acceptable, will send it back to the pre settlement loan company. On receipt of the contract, they’ll send the necessary money to your lawyer’s office.
If you win your case, the company will recoup some of its money back from the percentage of the settlement that you had previously agreed upon. You won’t owe them any money until after the case is wrapped up. Even better, if you end up not receiving a settlement from your case, you don’t owe the company any money! It’s a win-win situation for you.
If I Win My Settlement, Should I Opt for a Lump Sum Payment or a Structured Settlement Annuity?
For more personal control over your finances, going for the lump sum can be the best option, especially if you still have lots of debt to pay down. Even if the pre settlement funding company has helped you manage your cost of living up until now, it’s likely you still have some outstanding debt that you could get rid of. Who doesn’t want to start their finances over with a clean slate, especially considering that the average household in America has $15,000 or more in credit card debt and almost $130,000 in total debt. With the cost of living higher than the household income rate, you want to be ahead of the curve. If you come into some money, clearing your debt out can be a great way to do that.
Getting a lump sum will allow you to get rid of your debt, invest and save some of the money, and still have some left over to have a little fun with. Retaining a financial advisor can also help you manage your newfound money better, if you’re worried about splurging and spending it all. If your injuries are bad enough that you can’t go back to work, a financial advisor can help you make smart decisions about your money now that will impact your financial future later.
How Do I Decide What’s the Best Financial Plan for my Situation?
Your first resource should be that of your lawyer, who has worked with you through the entire legal process. He or she is probably acutely aware of any financial stress or problems you have and may have a clearer view on what your next steps should be. He or she can also probably refer you to reputable and trustworthy companies for extra help and may even be able to recommend a financial advisor.
There’s no need to be worried about your finances on top of everything else you’re already dealing with. Seek out the services of a pre settlement loan company for a little more peace of mind as you move forward with your case.