Car accident pre-settlement loans are financial funding made available to injury victims to receive a monetary payment while they wait for their settlement from a car accident lawsuit. A pre-settlement loan is legal funding, not a traditional loan, meaning there is no debt acquired, no monthly payments, and no risk of wage garnishment or collection calls.
Any money a legal funding company receives comes directly out of the settlement proceeds and never from the client. If you have been the victim of a car accident and have a legal car accident lawsuit in process but are in need of funding before you reach a settlement, contact Silver Dollar Financial to learn more about our Indiana car accident loans.
How Car Accident Pre-Settlement Loans Work
Car accident pre-settlement loans are a cash advance on an in-progress legal car accident lawsuit. It is a no-risk loan given to injured victims while they wait for their settlement.
Silver Dollar Financial typically loans 10-20% of the projected settlement loan amount. Our lawsuit loan providers will work with your attorney when determining what your settlement amount is likely to be.
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Costs and Benefits of Car Accident Loans
The costs and benefits of car accident legal funding make lawsuit loans an ideal option for those struggling while waiting for their settlement to come in.
Car Accident Loan Costs
Car accident pre-settlement loans in Indiana can be helpful to many personal injury plaintiffs. However, there are often expensive costs involved in taking out a lawsuit.
These loans are called non-recourse, which means the funder has no guarantee that the loan will be paid back because the borrower is not required to give any personal payback guarantee. Due to the high risk of not receiving payment if your injury case does not settle, the funder will often charge high rates.
All this to say, you should only take out a cash advance for the amount you need from your settlement.
Car Accident Loan Benefits
Pre-settlement car accident loans have many benefits. Oftentimes, crash victims are left in bad financial shape after being injured in a car accident. Silver Dollar Financial can help you receive higher settlement amounts from the insurance company by not having to settle early. In addition, it helps to ease the worries of financial hardship.
With car accident pre-settlement loans, your credit is never checked, and your employment history and income do not need to be proven, as there is no monthly payment requirement for car accident loans. For pre-settlement funding, the only thing that matters is your car accident case.
How to Spend Your Car Accident Loan Money
Car crash accident loans are non-recourse. This means the lawsuit cash advance you receive is risk-free when taking equity from your car accident settlement. You receive cash upfront, and if, for any reason, your personal injury case loses, you are required to pay nothing back.
The majority of the process is handled by your car accident lawyer. The only thing you have to do is apply, and your lawyer has to agree and sign the funding contract after reviewing it thoroughly with you. Our clients will often use their funding for the following reasons:
- Basic living expenses
- Additional medical expenses
- Mortgage or rent payments
- School or college payments
- Child support
- Past due bills
- Heat and electric payments
- Child care
Prior to agreeing and signing for any car accident loan, be sure you fully understand the pre-settlement agreement. If the funds are used responsibly, a car accident loan can be incredibly helpful to an injured client.
Common Types of Motor Vehicle Accidents
Silver Dollar Financial offers car accident pre-settlement loans on several types of automobile accidents, from minor fender benders to massive commercial truck crashes.
One requirement of car accident loans is to have a legal claim against an insured driver or party with a valid policy with an insurance company. The following is a list of the more common types of automobile accidents we provide funding for:
- Head-on crashes
- Parking lot fender benders
- Intersection crashes
- Speeding collisions
- Unsafe highway conditions accidents
- Rear-end collisions
- Drowsy driver car crashes
- Drunk driving collisions
- Brake failure accident
- Defective tire crashes
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Frequently Asked Questions
Some of the most frequently asked questions we get include:
How Long Will It Take to Process My Car Accident Loan?
Typically after applying for a car accident loan, we can approve you within 24 hours of speaking to your attorney.
Can My Lawyer Give Me the Loan Instead?
The majority of states do not allow lawyers to offer loans to their clients. However, in a few states, attorneys are ethically and legally allowed to provide advances to their clients. Many of those states, however, forbid attorneys to charge compound interest on those advances, so this could be a cheaper way to cover living expenses if it is an option for you.
Even when it is an option, most attorneys do not participate in this because it can complicate the client-attorney relationship.
Do I Need to Use a Funding Company that Is Near Me?
You are not required to use a funding company that is local to you. Silver Dollar Financial provides car accident funding nationwide, and the process can be done entirely paperless.
Will I Ever Have to Pay a Non-Recourse Loan Back?
Loans can be either non-recourse or recourse. To better explain the difference, you must understand collateral.
A collateral is something given to the lender to secure your loan. It could be homes, cars, credit cards, or other objects you have. With pre-settlement loans, the collateral would be your pending car accident settlement.
According to the IRS, the following is how non-recourse and recourse loans are different:
- The borrower is personally liable for repaying a recourse loan.
- The borrower is not personally liable for repaying a non-recourse loan.
Non-recourse loans are safer for a borrower. However, a non-recourse loan can become a recourse loan when the contract wording is unexplained or is very vague.
Why Choose Silver Dollar Financial for Your Car Accident Loan
Silver Dollar Financial understands the difficulties that come with car accidents, and we want to help our clients by easing their financial stress.
If you have found yourself injured and out of work, we can provide you with the funds you need while you wait for your settlement. Contact us today by phone or complete our online contact form.