There are times when life treats you very badly. You get injured in an auto accident and find yourself in all sorts of trouble. However, the best way to combat this situation is by obtaining a lawsuit loan. Not only for car accidents, will people who have been misled by large corporations because of their negligence be able to file for a lawsuit loan. In fact, there are so many reasons for which this lawsuit loan can be filed. But, you should know those reasons when you can file for the loan. The amount of this loan can start from $500 and can go up to $250,000. So, you can understand how vital the settlement is going to be and you have every right to file for the settlement if you are not at fault. Here are few reasons given below for which your Pre-settlement lawsuit loans will be applicable.
Essentials for Pre-Settlement Funds
Starting from medical malpractice, negligence of nursing homes, wrongful death and even for dog bites, you can file for a pre settlement funding as soon you gain your senses. In fact, the sooner you file the settlement, the better. You need to understand that the pre-settlement funding is just an initial amount of money that is given to you so that you can cope with the cost of treatment and other things that are related to the accident or the misdeeds done to you. The reason why the pre-settlement loan is also known as lawsuit loan is because the amount that is given to you will be adjusted in the final settlement of your claim. It is not that you will get additional money from the amount of money that has already been decided as a compensation for the injury.
Eligibility for Pre-Settlement Loans
There are incidents when a person has a construction accident where he accidentally slips and falls. These cases are also eligible for such funding. However, the place where the accident takes place should not have any warning or danger banners. If it is not there, then you can file for the settlement fund. But, if there is a cautionary message, then it will be considered as your fault and you may not get any money at all.
The concept of structured funding has existed for years and the settlement can be done with the help of a plaintiff. Although it takes a bit of time, but you can be rest assured that the money will be paid off in time. The time taken to pay off the settlement will depend on the type of settlement. Normally, the minimum time is two years and the maximum is up to lifetime. However, you should not confuse structured settlement with pre-settlement funding. They are totally different and most importantly, the structured settlement will be guaranteed by a government bond. The basic reason for structured settlement is compensating for the mistake that the other person has done and as a result of which you are suffering either physically or financially.
Funding for Settlements
One of the basic differences between a structured settlement and lawsuit settlement is the funding for these settlements. For structured settlement, you can get in touch with the best structured settlement funding company and they would arrange for an insurance company from where the money will be funded. However, for lawsuit settlements, the funding is done entirely by the person who is at fault. You will not have to think about how he is arranging the money. For a structured settlement, the person who is compensated will not be able to get his settlement from the lawyer. Lawsuit settlements can be availed by anyone and everyone. This is nothing, but a part of the total compensation that will be paid to the victim.
A big reason why structured settlements are preferred over lawsuit settlements is because the latter involves a high rate of interest. The lawsuit settlement is like a loan that is given and the rate of interest is very high. So, when the day of final settlement arrives, you will see that after the deduction of interest, the amount of money that you are getting is quite less compared to the amount that a structured settlement would have given. So, before you file a claim, be sure about the terms and conditions because a small mistake in your decision may well prove to be costly.