When you’ve been wronged in some way and you take legal action to remedy your situation, few things are more satisfying than getting a substantial settlement. Even though the money may not put you completely back together again, it can go a long way toward helping your situation. Although you and your lawyer may feel really good about your chances of getting a settlement, the legal process can take a long time. The other party can sometimes drag out the case for years with motions and legal maneuvers. Even if you’re destined to get a large settlement at some point, you need money now. In this situation, a pre-settlement loan might be exactly what you’re looking for.
What is a Pre-Settlement Loan?
A pre-settlement loan is essentially a type of advance that you can obtain on a future settlement that you will receive. Instead of waiting on the other party involved in your legal matter to pay up, you can instead obtain this loan from a lending company. Then, as the settlement is paid out, you repay the loan with those proceeds. It gives you a way to access your money long before it would otherwise make it to you.
Things to Consider
Should you obtain a pre-settlement loan? The truth about cash advances on pending lawsuits is that there is not a one-size-fits-all answer for everyone. In some cases, it makes great sense, and in others it doesn’t. Most of the time, only a smaller percentage of the total settlement amount would be available in a loan. For example, you might be able to borrow 15 to 20 percent of the total settlement amount.
When you’re looking at this option, you also have to be aware of how much it will cost you. There will be some kind of fee involved in borrowing money. If you need the money now, the cost may be well worth it. Just pay attention to the terms and conditions of the deal.
Overall, using a pre-settlement loan might be exactly what you need to get money quickly. If you’ve got bills coming in and no way to cover them, this can be an extremely valuable tool to use. If the settlement is big enough, you’ll still get a sizable amount when the other party finally pays. This can just give you a little bit of cash to deal with things in the meantime. Just make sure you understand all of the terms of the deal before you sign on the dotted line.
Overall, using a pre-settlement loan might be exactly what you need to get money quickly. If you’ve got bills coming in and no way to cover them, this can be an extremely valuable tool to use. If the settlement is big enough, you’ll still get a sizable amount when the other party finally pays. This can just give you a little bit of cash to deal with things in the meantime. Just make sure you understand all of the terms of the deal before you sign on the dotted line.
