Car accidents are the primary cause of injury in Louisiana. The most common factors for crashes in 2019 were alcohol and a low percentage of use of safety belts.
If you’ve been hurt in a road accident, you may want to consider lawsuit settlement loans. How do they work? Who is eligible? This post will answer these questions to make you understand better.
1) What Are Pre-Settlement Loans?
Pre-settlement loans are legal funding provided to plaintiffs in personal injury lawsuits before settling their case. This funding is also known as a pre-trial settlement or lawsuit loan.
A pre-settlement loan can give one the financial resources to stay afloat during a long and drawn-out legal battle.
This type of non-recourse funding means you don’t have to repay the money if you lose your case. It makes pre-settlement loans a desirable option for plaintiffs who may be struggling financially.
2) How Do These Work?
Pre-settlement or lawsuit loans are essentially cash advances against a future settlement. The borrower pays back the money with interest and fees out of their eventual settlement award. If they lose their case, they don’t have to repay the loan at all.
These loans can give plaintiffs the financial resources they need to stay afloat while waiting for their case to settle.
The ‘fault’ system is used in Louisiana for insurance claims. For example, before you recoup financial damages for any injuries you sustained in an accident, under the fault system, you must first show that another motorist was to blame.
It can be done by filing a personal injury claim or lawsuit against the at-fault driver. Once it’s proved that the other driver was responsible for causing a person’s injuries, their insurance company should financially compensate the victim for their damages.
However, this procedure can take months or even years to resolve. And during this time, many plaintiffs find themselves in dire financial straits.
It is where the pre-settlement funding comes in. With this, one can get the money they need to cover their expenses and wait to repay the loan until after their case settles.
3) Who Is Eligible for This Loan?
Here are the factors that will determine whether a person is eligible for lawsuit settlement loans in Louisiana:
* The strength of the case
* The time that has passed since the accident occurred
* The victim’s current financial situation
A pre-settlement loan can be a good option if the victim has a strong case and needs money to cover expenses while waiting for the settlement.
Eligibility for this loan also depends on the affected person’s current financial situation. If they cannot pay bills or don’t have enough money to cover their living expenses, pre-settlement funding can provide the needed financial relief.
Some common causes include:
* Personal injury
* Medical malpractice
* Workplace discrimination
* Sexual harassment
If a person has been hurt in a road accident or been the victim of discrimination or harassment, they will be eligible for this specific loan.
Conclusion
When you are considering a lawsuit loan in Louisiana, be sure to do your research. Different reputable companies are out there to help you get the funding you need. Be sure to read reviews and talk to others who have used the company’s services before deciding.
Leave a Reply