Are Pre-Settlement Loans Safe?
Safety and financial risk are among the chief concerns of people who need to take out a pre-settlement loan. This kind of funding is useful for injured people waiting on their case to settle or for a jury to award them compensation at trial, but a loan that must be paid back is often a cause for worry. However, pre-settlement funding is safe and low-risk. It is a form of non-recourse lending that does not hold the borrower personally liable for the full amount of the loan, according to the categorization used by the Internal Revenue Service (IRS).
In other words, you pay back your loan, but if you default, the lender can only take whatever is used as collateral against the loan. They cannot pursue additional wage garnishments or levies against you, even if the collateral does not cover the total value of what is owed.
Silver Dollar Financial takes matters a step further. Our goal is to remain transparent, straightforward, and understandable so that you are always aware of your loan status and are never caught off guard.
When You Have to Pay Back Your Pre-Settlement Loan
At Silver Dollar Financial, we want to help all injured people seek justice and appropriate compensation, rather than capitulating lowball offers from the opposing insurance company. While some injured people may worry about taking out a pre-settlement loan because of the prospect of having to pay the loan back, our lending process is designed to assuage those fears.
You Pay Us Back Out of Your Settlement
The goal of pre-settlement funding is to “borrow forward” from yourself in the future. You are taking out a loan based on the amount of money you anticipate getting in your settlement or compensation award so that you can use that cash in the here-and-now. Since you can file a personal injury claim as far away as two years from the date of your injury in Georgia (known as the statute of limitations), your case can take several years to resolve, all while your bills pile up. Use a pre-settlement loan to cover your expenses until then, and pay back the loan from your eventual settlement amount, keeping whatever is left over.
When You Do Not Recover
Despite your attorney’s best efforts, sometimes cases do not go the way you want. In some situations, you may not make a recovery, and you may worry about being on the hook for your pre-settlement loan of up to $100,000. Let’s go ahead and put that fear to rest. If you do not recover compensation, you do not have to pay back your pre-settlement loan!
The Silver Dollar Financial Process
In maintaining our goal of keeping everything transparent and straightforward, there are only three steps in our pre-settlement loan application process. We also have an attorney portal where your lawyer can access information about your loan, update us on your case, submit necessary documents, verify your claim, and more.
Step One: You Apply
This step is the only one that requires significant action on your part. Input your information on our Apply Now page, and we will take the matter from there.
Step Two: We Approve
Our financial experts will look into the details of your case, assessing both the likelihood of your recovery and your financial need, and decide your eligibility for a pre-settlement loan. Though some situations may require additional input from your attorney, you may be approved in as little as 24 hours.
Step Three: You Get Your Money
After approval of pre-settlement funding, up to $100,000 will be deposited into your bank account. This money can be spent as you see fit to tide you over until your claim is resolved. For example, you can use a pre-settlement loan to pay for:
- Outstanding medical bills
- Installation of medical equipment in your home
- Lost income from missed work
- Rent or mortgage
- Car repairs or replacement related to your accident
- Therapy sessions or rehabilitation
The point of a pre-settlement loan is to ease the burden you experience as insurance companies try to make you desperate to settle for low compensation. Use the money as you need, for whatever you need, and let your attorney work out the best possible resolution to your claim.
Your money is waiting, but the bills are not. Take control of your finances and take power away from the opposing, at-fault party in your personal injury claim by getting your pre-settlement loan today. Fill in your information on our Apply Now page to get the ball rolling, and we will be in touch shortly with our decision.