What Are Slip and Fall Lawsuit Loans?
A slip and fall lawsuit can last anywhere from a few months to several years. As the case progresses, you will likely face accumulating medical bills and unpaid mortgages and bills due to lost income. Some plaintiffs in this situation decide to take out a loan on their expected settlement. These amounts are called slip and fall lawsuit loans.
A lawsuit loan isn’t a traditional loan. It is a cash advance on your settlement, which you are required to pay back when your case is resolved.
Are you considering taking out a loan on your slip and fall settlement? A Jersey City Personal Injury Lawyer can advise you on the pros and cons of lawsuit funding.
Slip and Fall Lawsuit Funding
Slip and fall lawsuit funding is a type of lawsuit loan. It is a cash advance offered to plaintiffs who were hurt in a slip and fall accident and are awaiting a settlement. With a lawsuit loan, the lender buys your right to a portion of your settlement. Simply put, you receive money that you are expected to pay back once you receive your claim amount.
Lawsuit funding is a relatively new concept. A good number of personal injury plaintiffs have not heard of it. However, it is slowly gaining popularity.
What Are the Benefits of a Lawsuit Loan?
The reason lawsuit loans are catching on is because they offer a way out of a difficult situation. If you have been injured in a slip and fall, you will likely need to deal with medical expenses. You might also spend time away from work, which could temporarily lower or eliminate your income. This could leave you with a pile of unpaid bills and no money to settle them.
With a slip and fall lawsuit loan, you can cover these expenses as you await your settlement. This relief could even allow you to let your case go on for longer as you negotiate a fair settlement.
Potential Pitfalls of Lawsuit Funding
While it has its benefits, lawsuit funding is not for everyone. It could have potential demerits that could make it more trouble than it is worth. Some disadvantages of taking a cash advance on your settlement include:
- Slip and fall loans are expensive – When you receive a lawsuit loan, you are required to pay it back plus an interest payment or funding fee. This could significantly reduce your take-home settlement amount.
- They are not as regulated as other loans – As mentioned, lawsuit loans are relatively new. They are not yet subject to the same level of regulation applied to traditional loans.
- Reputable lenders are hard to find – This can be attributed to the minimal regulation.
Consult with a Jersey City Personal Injury Lawyer
Slip and fall lawsuit loans can seem like a good idea, especially if you are in debt. However, they are a relatively new concept and not as regulated as traditional loans. It is advisable to explore other funding options before taking up money on your settlement.
If you decide to take up a lawsuit loan, discuss the decision with a Jersey City Personal Injury Lawyer. Attorney Anthony Carbone can help ensure your rights are protected at all times. You can contact him online or call the Law Offices of Anthony Carbone to schedule a consultation.