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car accident loans commercial motor vehicle accidents
Car accidents take place in this country every single day of the year. The best that any of us can hope for is that we are not the unfortunate victim of one on any given day. Those who do find themselves on the short end of this stick need to know about pre-settlement lawsuit loans.
Filing A Lawsuit After An Accident
Medical bills that one collects as a result of injuries sustained in an accident that was not their fault should not be their responsibility. Everyone generally agrees with this principle. That is why people bring lawsuits into the picture when they are involved in an accident. It is fairly easy to get an attorney for this kind of case as most who handle these cases work in such a way that they only get paid once you get paid.
The typical case will be a lawsuit against the insurance company of the other driver. This is because lawyers know that insurance companies have large sums of money set aside for these kinds of things. The average person out there driving around does not have a lot of money that you can get out of them. Don’t forget this when you are looking into a pre-settlement loan.
Settlement Of The Case
There is not nearly as much drama in real life legal proceedings as there is on television. Court dramas would lead us to believe that nearly all cases go to trial and that nearly all of the decisions made about the case are made in front of a judge and jury. That is not even close to the way that things work in real life. Courts are already extremely backlogged as it is, and they simply cannot handle the burden of taking every case through a trial. The vast majority of cases are settled long before a judge and jury get involved.
Insurance companies are often eager to settle a case because they want to get it taken care of and off their books. They will frequently come in with a low offer to try to get the opposite party to accept as little money for the situation as possible. A competent attorney will refuse this and make a counter offer, and the two parties tend to meet somewhere in the middle. While all of this is happening the person bringing the lawsuit may find themselves very hard up for money and in need of that settlement just as quickly as it can come. That is where the lending comes into play.
Borrowing On A Projected Settlement
Clients in need of cash faster than the court can dole it out to them may consider a pre-settlement lawsuit loan. These loans are made frequently as a regular course of business. The point of such a loan is to take the burden off the person bringing the lawsuit and give them the funds that the need.
The lender benefits in this scenario because they only lend out a portion of the anticipated settlement while receiving legal documents that give them the right to receive the full settlement for themselves when the case has run its course. In other words, they are paying out only a portion of the total settlement in exchange for the legal right to that settlement at a later date.
Courts throughout the country have ruled this practice to be legal, and there are plenty of people who use this system themselves. No one likes to be that hard up for money, but it does happen. A person who ends up in this place can at least take comfort in the fact that they always have some form of available resource to turn to for funds.
Borrowing does mean giving up your right to future claims in your case, so make sure you are fully committed to it before taking this kind of action. It is a long-term decision that you should discuss with anybody and everybody that it might impact.