The time taken for an award or settlement can prove to be a serious issue in case of personal injury claims as, often the claimant may have lost his employment and primary income due to the injury. Simultaneously, he may be battling with the additional medical care required. It can prove to be very difficult for an individual to sustain his personal injury litigation under huge financial pressure without risking bankruptcy and losing all his assets, including his home and car.
Why Lawsuit Loans May Not Be a Great Idea
Claimants, in need of money, are often lured by high-decibel advertising by lawsuit financing firms who are ready to make cash advances in return for a part of the award. Of course, there’s no escaping the biggest advantage of claim loans that in case the claim is not successful, then the claimant does not have to pay back the loan firm anything. But, it is worthwhile to look at other forms of financing that may be available. Get to know more about lawsuit funding firms and their services by visiting http://www.topconsumerreviews.com/lawsuit-funding/.
Rely On Your Own Assets and Savings
Your personal savings and funds from liquidation of your assets represent the best way of getting together a war chest to fight a claim and sustain you during that period. If you need to liquidate any asset, you should carefully consider as to which asset is the least important to you. If you have a second vehicle or home, it is alright to sell these off as you would still have somewhere to live and the means to get around. However, if you have only one home and car, these are the last assets you should liquidate. Taking a loan from retirement accounts should also be done with abundant caution as this could leave you vulnerable if the case drags on for a very long time. Availing of a lawsuit loan does not jeopardize your future as the payment is done out of the proceeds.
Generating Extra Income
If the nature of the personal injury permits and are self-employed to generate additional income that will help you out during the pendency of the case, you could think about getting a second job or working a few hours more. If you are unable to continue with your normal employment, a part-time job can reduce your financial distress substantially and you can turn to other means, including lawsuit settlement financing for the balance.
Asking Family and Friends
If you are convinced that the case has serious merits and will be settled or awarded soon, you may examine the possibility of getting enough funds to tide you over from family and close friends who may even be considerate enough not to charge you any interest. However, be prepared to face surprising reactions from people that you would have thought completely dependable. Also, if the case drags on unexpectedly, you may have problems meeting your commitments regarding returning the money and this may put your relationships under severe duress.
Seeking Conventional Commercial Loans
You can always approach your bank to extend a personal loan that would typically carry a lesser rate of interest than litigation funding. However, you must be prepared to make ready a fair amount of documentation and even undergoing a credit check, the results of which would dictate the amount of loan. You may have to also put on physical assets and provide guarantees from third parties. Be prepared to deal with a strict repayment schedule, irrespective of the fate of your court case. You will still need to pay off the loan even if you lose the case, unlike a lawsuit loan that does not entail you to return anything under such circumstances.
Author: Charlie Brown is a lawyer specializing in personal injury litigation. He has written a number of articles in the online media regarding personal injury case histories and the sources of personal financing that a claimant can consider. He is also a regular contributor to http://www.topconsumerreviews.com/lawsuit-funding/.