Personal injury actions are usually extremely costly. It is also not uncommon for them to take several years to be resolved. The problem with this is that while your personal injury lawsuit is taking its time weaving its way through the phases of the judicial process, you still need to pay routine bills such as your rent or mortgage, utilities, car insurance, and food. If you are not physically capable of working because of your injuries then you are also missing out on paychecks while your claim is going to court. A personal injury loan could help you alleviate your financial overload and make it possible for you to keep up with your monthly bills while you wait (and wait) for your personal injury suit to finally settle.
Listed below is some basic information regarding personal injury loans.
An attorney’s legal ethics and professional responsibility prevent a personal injury attorney, or any other type of attorney, from lending money to a client against their expected financial award. Additionally, most attorneys have numerous clients rendering it a virtual impossibility for an attorney to loan each of his or her clients enough money to ease their basic living expenses while they wait for their case to settle.
How Does My Attorney Factor into My Personal Injury Loan?
Your personal injury attorney must be willing to cooperate with the business that will be lending you money. Due to the fact that the company issuing the loan has a vested economic stake in the results of your claim, they will most likely ask to evaluate your case and go over various elements with your attorney. Most of the time, your attorney will try to deter you from getting a personal injury loan because reviewing your claim with the loan company technically violates attorney-client privilege.
How Do Personal Injury Loans Work?
Settlement-based personal injury loans are similar to a payday loan in the sense that you are borrowing against your anticipated settlement, comparable to the way you might borrow against a future paycheck when you apply for a payday loan.
A credit check is usually not part of the process since the company financing your loan really only takes into account if your settlement is going to be substantial enough to pay back the money you borrow. A lot of finance companies make it possible for you to fill out your loan application online as well as give them specific details concerning your claim. Their next step will be to get in touch with your attorney and, if the information you provided, the loan company’s assessment, and what your attorney says are all in agreement, your file will then be assigned to a loan underwriter who will have the final say in whether or not your claim merits the loan amount you applied for.
There are many different factors to take into consideration, such as interest rates and the true cost of the loan, before you enter into any kind of personal injury loan agreement. If you have been injured and are unsure whether or not you should apply for a personal injury loan, speaking with an experienced Connecticut personal injury attorney is the best way to make sure that you understand what is involved in doing so and any potential risks you may be vulnerable to.
If you are filing a lawsuit because you have been injured due to another person’s carelessness, negligence, or maliciousness, and think you may need a personal injury loan or would simply like to learn more about them, we urge you to reach out to an attorney with over 30 years of experience in handling these types of Connecticut personal injury cases as soon as you can.
If you would like a free evaluation of your Connecticut pedestrian accident claim by a member of our legal team, then please call our offices at (203) 597-6364 and make an appointment today. Our attorneys are prepared to respond aggressively to your accident claim and ensure that you receive the full amount of financial compensation you are entitled to under Connecticut law.