If you have filed a lawsuit to claim compensation for injuries and losses related to an accident, you may be looking for the money to pay your expenses until you receive a court award or a settlement payment. A lawsuit can take months to resolve, so you will need adequate financing to cover the medical expenses related to your accident injuries as well as monthly budget expenses if you have lost job wages due to accident injuries. You may be able to find temporary funding until your lawsuit reaches a conclusion.
Dip into Savings
If you have a savings account, borrow from it to keep creditors at bay. Withdraw what you need on a monthly basis rather than a huge lump sum in order to minimize lost interest. Make a commitment to repay your savings, preferably with the lost interest, when your legal case is finally resolved.
Tap Your IRA
An Individual Retirement Account may also provide adequate temporary funding for your legal fees and living expenses. Discuss your withdrawal options with the host institution to find out about early withdrawal penalties and limitations on the amount that can be taken out with a certain time period, like a year. Plan to repay these funds, too, when your settlement check arrives.
Check into Pre-Settlement Funding
You may be eligible for pre-settlement funding for your court case with a lawsuit settlement loan. Structured similar to a pay advance, you will receive the funds you need now, but they must be repaid at the time your lawsuit is settled or concluded in court. An interest charge will apply, but it is not usually exorbitant. This type of loan naturally applies to the lawsuit, so you are less likely to spend the money on other things.
Apply for a Short-Term Loan
If you have a good credit score, you can apply for a short-term loan extending over two or three years from a local bank or credit union. However, you will need to make monthly payments, with interest, for the duration of the loan or until you receive a settlement payout that can be applied to the balance of the loan.
Collectors’ items, expensive jewelry, and other valuable items that you possess can be appraised and possibly pawned temporarily or sold outright. The advantages are that you will have no monthly payments or interest to worry about. The disadvantage is that you are parting with something that at some point held value for you.
These options offer ways of covering your pre-settlement expenses until the case is resolved and you receive a judgment for compensation. Consider relevant factors like interest and monthly payments when choosing the best method for your expenses.