One of the most common forms of personal injury lawsuits is a car accident claim. While most settle long before seeing the inside of a courtroom, that doesn’t mean the case resolves quickly. You might end up waiting months or even years before you receive the money you are owed from the driver, government entity, trucking company, or other at-fault party from your accident. A car accident loan is a way to dip into your future compensation package to pay for your present expenses. A legal funding company can take a look at the facts of your case and estimate the size of your settlement. They can then lend you a portion of this amount, to be repaid later, but only if you win your case.

Every car accident case is different and imposes its own set of costs on plaintiffs. As a result, we’re unable to provide a specific estimate as to how much your car accident loan will cost. However, there are a few rules of thumb that reputable legal funding companies tend to follow when offering car accident loans. For one, there shouldn’t be any added fees associated with your auto accident loan. Any and all costs of your lawsuit loan should be disclosed to you upfront. These will be in your contract that you sign once you take on the loan.

Your contract should also be easy to understand and written so you know exactly what you are agreeing to. Additionally, car accident loans should come with a low, simple interest rate. High, compounding interest rates can quickly add up over the course of a lengthy lawsuit, even if they don’t seem much more expensive right now. As many claims can take a year or more to settle, a low interest rate is critical to protecting as much of your settlement as possible.

Since lawsuit loans are non-recourse, you are never held personally liable for the debt. Your personal assets are never at risk and the only potential source of repayment for the car crash loan will be your settlement. If you lose your case, you don’t repay your car accident loans. You also won’t ever have to pay more back than the amount of accident loans that you borrowed. This also means that applying even for multiple car accident loans won’t impact your credit score. In fact, your credit score and employment history aren’t even taken into consideration in your application. The only factors that can impact your ability to obtain a lawsuit loan is your case itself and how likely it seems you are to win it.

 We will need your lawyer’s approval in order to offer you a car accident loan. Most lawyers who work on a contingency basis, which are the types of lawyers we can work with, are open to accepting legal funding. However, some don’t want to involve a third part in the payment process for a number of reasons, which is where we would interact with them. If your lawyer doesn’t want to accept legal funding, we won’t be able to work with you. However, we may still be able to offer you lawsuit funding if you decide to work with another lawyer who is open to accepting legal funding. If you’re unable to find a new attorney, you may need to turn to other forms of funding, such as recourse debt, to pay for your expenses. This also means that applying even for multiple car accident loans won’t impact your credit score. In fact, your credit score and employment history aren’t even taken into consideration in your application. The only factors that can impact your ability to obtain a lawsuit loan is your case itself and how likely it seems you are to win it.