Should You Get a Cash Advance on Your Personal Injury Case?

personal injury lawyer

Not many people know, but it's actually possible to get a cash advance in a personal injury case. Basically, this is a loan that is taken out against the settlement amount that is expected. Keep in mind, there are some things that you want to think about and you should discuss your thoughts with your personal injury attorney. With that being said, keep reading to see some of the advantages and disadvantages for these types of loan.

Advantages

The first thing we need to look at are the advantages of getting a case advance on your personal injury case. These are some of the reasons why it could be a good idea. Keep in mind, these are only a few advantages and your attorney can discuss more with you.

Possible Larger Amount

For starters, since the loan amount is being taken against the amount that the settlement is expected to be, there's a chance that you can get a higher loan amount. This is especially true and very helpful if you need a higher amount that most traditional loan providers don't usually offer.

Easily Accessible

Another advantage is that the funds are easily accessible. Depending on what type of personal injury case you have, you should have pretty high chances of getting approved. This is because the loan is being taken against the possible settlement amount. Make sure you find a company that specializes in these types of loans and isn't going to try and pull one over on you.

Supplement Income

Being able to get a decent loan can help supplement your income while your case is still going on. This is especially true if the injury made it so you couldn't work. You'll have enough to worry about, so you don't have to also worry about how the bills are getting paid or how your getting fed.

More Negotiation Time

One final advantage is that having the money to help hold you over can make it so you won't be rushing into an agreement just because you need money. This means that there's more time to come to an agreement and there's a chance that the settlement amount could end up higher than what was originally expected.

Disadvantages

Now we need to look at the disadvantages. There are always going to be some negative things that happen in any situation and this is no different. These are just a few disadvantages and many more could come up, which your attorney should discuss with you.

Hidden Costs

The first disadvantage is that these types of loans can end up having a lot of hidden fees that you might not be aware of at first. Before signing any papers, make sure you thoroughly read everything and, if possible, let your lawyer read it over.

Bad Regulations

Another disadvantage is that these loans tend to have bad regulations. Since they don't work like other loans, the regulations aren't the same. They can have things like higher APR and higher interest rates. Make sure you know what you're signing up for before actually doing it.

Some Cases Don't Qualify

There's also the fact that some cases don't qualify for these types of loans. It will differ from company to company, but you want to make sure that your case qualifies and that there aren't any special rules that would affect it.

Different Settlement Amount

Finally, there's always a chance that you end up getting a lower settlement or not one at all. This will throw everything off because you borrowed based on how much you were expected to get. If the loan you took wasn't a non-recourse loan, then you'll still have to pay it back regardless of what the outcome of your case is.

Even though you know about some of the advantages and disadvantages, you want to make sure you discuss it with your personal injury attorney. They can help make sure that you don't get into a situation that isn't good and they'll be able to help you figure everything out.

Author Bio: Douglass Pitassi is a freelance writer and small business blogger.



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