When most people think of a financial loan, they assume the money will need to be paid back at some point. However, as more financial services are now available to individuals, one of the most attractive and popular options for those awaiting settlements from personal injury lawsuits is pre-settlement funding. While often referred to as lawsuit loans, there are many differences in how these financial arrangements are handled. If you are involved in a lawsuit and needing money to cover medical expenses, lost wages, and other expenses, here are some important details regarding pre-settlement funding.

Once you decide pre-settlement funding is a viable option for you, speak to your attorney. If they are in agreement with you, they can put you in touch with various companies specializing in these arrangements. After contacting a company and providing information about yourself and your case, the company will then contact your attorney to gain additional details about your lawsuit. After this conversation, the company will then decide if your case is eligible for pre-settlement funding. If so, they will send a copy of a financing agreement to your attorney.

When it comes to lawsuit loans, you are not expected to pay back any money, even if you lose your case. Instead, the company agrees to purchase a certain percentage of the anticipated total settlement amount. In most cases, this can range from 20-30 percent. Thus, when your case settles, the company receives the portion of the settlement it purchased.

Once you and your attorney have reviewed the agreement and you decide to choose this option, you simply sign the agreement and have your attorney forward it to the company. After it is received and all information on the document is verified to be correct and truthful, the company will then send you the money, often within 24 hours.

By having money in hand while waiting for your case to reach a settlement, you and your family can once again live a life free from financial worries. Rather than sit back and continue to let unpaid medical bills and other expenses ruin your quality of life and your family’s financial future, consider the possibility of pre-funding settlements. By doing so, you and your attorney can discuss the option in great detail, review the key aspects of your case, and then move forward with a plan that will help secure you and your family financially.