When you are in an accident that is not your fault, you are entitled to be compensated for your damages, including an injuries sustained. Every case is different, so the time it takes to resolve your matter will not be the same as any other case. It can be hard to sit back and wait for the funds you need though, and for some people the thought of taking out a settlement loan is appealing. When money is tight it is tempting to look at alternative ways to put money in your pocket quickly, to cover every day expenses. If you are considering this option, there are some things you need to know before you make a final decision.
The decision to take out a loan in anticipation of a settlement or jury award is personal, and should only be made after careful consideration. The most important things you need to know about a settlement loan involve your personal injury attorney. For instance:
- Your attorney cannot make you a loan, if you are thinking about taking out a settlement loan, it will come from a company other than your lawyer’s office.
- The role your attorney does play is to cooperate with the loan company, by doing things such as providing details of your case and updates on its progress. This can only be done with your consent, since your attorney works for you and not the loan company.
- The “collateral” for the loan is provided by giving the loan company an interest in your settlement, or any jury award.
It is generally not advisable to take out a loan in anticipation of settling an injury claim. The settlement process, and certainly the jury trail process, is uncertain. If you receive less than what you are awarded, you will remain liable for the balance of the loan. If you are experiencing financial difficulty while waiting for your personal injury case to finalize, explore other options before resorting to a loan company. Often times sympathetic family members are willing to lend a hand, even if the assistance is not financial in nature. To learn more about what to expect during your case, including your financial outlook, call our office.
If you have been in a car wreck, call our office to schedule an appointment today. Let an experienced attorney help you figure what is best for you. Call a Bloomington, Minnesota personal injury attorney today.