When Personal Injuries Are Considered Catastrophic
When it comes to the laws regarding catastrophic injuries, there are often many questions about what makes an injury catastrophic over a simple personal injury. This is reasonable to ask considering the term “catastrophic injuries” can mean different things in a variety of different contexts.
In the legal world, there is no single universally accepted definition on what makes an injury considered catastrophic. However, there are many working definitions that can satisfy most of the legal and medical scenarios appropriately. This allows legal teams the ability to assess and then categorize serious and extreme injuries.
Obtaining A Catastrophic Personal Injury Loan
If you have been hurt and sustained a catastrophic injury as a result of someone else’s negligence, you may find yourself having to file a lawsuit for compensation. These types of lawsuits can take months or even years to get through. While waiting for your case and lawsuit to be settled in court, you may begin having financial hardships.
Applying for catastrophic injury loans while waiting for your lawsuit settlement funds is a way to pay for your bills and other financial needs while waiting for your case to be done. The loans are available by borrowing against your pending lawsuit settlement. Borrowers are able to use the funds they receive however they want. Even though they are referred to as catastrophic personal injury loans, they are not actual loans. Because of this, the funds are not subject to usury laws. The funds may be used for bills, medical treatment costs or any other purpose the borrower deems appropriate.
Catastrophic Injury Loans Are Similar To Cash Advance Loans
When a catastrophic injury lawsuit plaintiff applies for a personal injury loan, they are really just selling a portion of their future lawsuit funds. For these types of loans, the borrower is not going to be personally liable to repay the cash advance in the event the lawsuit results in no settlement agreement. If a catastrophic injury lawsuit proved to be successful in the end, the finance company will then be entitled to receiving the percentage of your settlement you signed away to them when you initially applied for the cash advance funding.
Catastrophic Injury Lawsuit Loans Are Equity Transactions
Personal injury lawsuit loans are repayable without any specific conditions attached to them. These types of loans only need to be repaid if the lawsuit the borrower is filing has a successful outcome resulting in a settlement. The reason these loans are not required to be repaid in the event a lawsuit does not end successfully is because it is considered an equity transaction.
When a borrower applies for a lawsuit loan, they are formally taken over by the pre-settlement financing company. They will be assigned a small portion of the catastrophic injury settlement. This will be in exchange for a cash payment to the borrower. In most cases, the funds will be given to the plaintiff immediately once the application has been completed and accepted.
The Role Of Catastrophic Injury Cash Advance Loans
Throughout the years, many catastrophic injury plaintiffs found it very hard to bring claims against big insurance carriers for a successful settlement. Most insurance carriers have the ability to use their many financial sources to negotiate less-than-desirable settlement offers to the plaintiff.
It should be noted that catastrophic injury loans are not free. Borrowers should weigh the pros and cons before determining if they want to take on this loan option. Be sure the funding company you work with offers full disclosure about what charges and fees you can expect to pay on your loan. All fees and charges will only have to be paid back if there is a successful outcome on the plaintiff’s lawsuit. Additionally, make certain a lawsuit finance company caps their charges and fees for their customers.