Understanding Lawsuit settlement cash advances
The advertisements that you often get to see on lawsuit settlement cash advances may be pretty enticing. But, before you determine that this is the best option available to find some much needed cash, you should get a firm grip on how a settlement cash advance works and what you can expect out of it. Nevertheless, there is no denying the fact that for some individuals, the settlement cash advance could indeed turn out to be a lifeline.
Typically, settlement cash advances focus on personal injury lawsuits. You have either filed a suit or are contemplating to do so. Your attorney makes an assessment of the lawsuit and provides a summary to the lender. You follow up with an application for a settlement cash advance and the lender approves the cash advance in a maximum of 2 working days. Remember though that in most personal injury lawsuits, once a settlement is reached, your attorney takes away a third of the settlement and your medical lien is pegged at another one third. That leaves you with just one third of your total claim. The lender offering settlement cash advances may give you some 60% of the share that is ultimately due to you. Assuming that you are good with the numbers, you can now see that a settlement cash advance may not necessarily translate to a windfall. On the other hand, it helps you tide over a difficult financial situation without the bother of credit scores or income verification. Pre-settlement cash advances help you resist the offers from insurance carriers/assessors and buy time till a final settlement is arrived at. Often times, your attorney can convince the jury to award a compensation better than what the insurance company or the assessor offers.
The first step to seek a settlement cash advance is to position yourself as an informed borrower. The internet brings you a wide range of resources to come to terms with the nitty gritty of settlement cash advances. You should find quality time to do a focused research and frame a set of questions to ask the lender. Obviously, this will include the cost of the cash advance, the repayment tenure and the amount of the cash advance that can be expected taking into consideration, the circumstances of your lawsuit. The next step is to contact your attorney and get his assessment of your lawsuit. You can also seek his guidance on settlement cash advances and companies to work with. The settlement cash advance company then takes a day or two at best to approve your cash advance.
Law suit settlement cash advances work in your best interests when you are looking to buy time awaiting the settlement. On the other hand, should you still be gravitating towards settlement cash advances to meet contingent expenses like school fees or utility bills, you are better off pegging the cash advance amount low just to tide over the crisis. This way, when the settlement amount finally arrives, you can still see some cash in your wallet, after paying off the attorney fees, medical bills and the cash advance amount with interest and other charges.
.:About the author:.
Max Alperovich is a Partner and co-founder of Pegasus Legal Funding, LLC. Max was an early adopter and identified third-party litigation funding as a mutually beneficial endeavor for both client and funder relationships.