Borrowing Money On My PI Case? Be Careful, But It Is Done.
If you are in the midst of a personal injury claim, there are loan companies that provide pre-settlement funding for you because they are aware that the process takes time. Advanced loans for legal personal injury cases work as an investment for the loan company. They are relying on a settlement to get their money back, which is why most companies will not approve a plaintiff unless an attorney represents them to ensure that they are going to be reimbursed.
When an attorney represents you, especially Andrew G. Rosenberg, he will advise you as to whether or not taking out a loan is the best idea for your case because every circumstance is different. If you choose to go about applying for a loan, it is done through the funding company, not the attorney. The company will evaluate your case and assess how much money they think you may receive from your settlement. If approved, you will be immediately offered a sum of money.
In order to receive the funds, you must sign an agreement to pay back the initial amount given to you plus interest (funding fee). Every company and case is different when it comes to the percentage of the funding fees, which is why it is important to understand your different options. The money to pay back the loan comes from the settlement, but not until the other expenses are paid from the settlement first (medical bills, attorney fees, etc.).
Since a personal injury incident can take a couple years to resolve, the interest fees on the loan add up quickly and the rest of the money you were expecting to receive from the insurance company after medical expenses and fees often goes to paying off the amount owed to the funding company (due to interest charges). Because of that, it is important to be cautious and thorough when considering funding during your claim process. So, be sure to read our blog that breaks down the Pros and Cons to consider when it comes to taking out a loan.
At the law office of Andrew G. Rosenberg, we are dedicated to providing you with the best advising and assistance in deciding whether to take out a loan. We understand that it is sometimes necessary, so we will ensure that you are well informed about the process.
Have You Been Injured Due To The Negligence Of Others?
If you’ve been injured in Florida due to negligence you need to speak to an experienced personal injury lawyer as soon as possible. Please contact us online or call our Coral Springs
office directly at 954.755.7803 to schedule your free consultation. We proudly serve Florida residents including all of Fort Lauderdale,
Boca Raton Miami-Dade County, Broward County, Palm Beach County and all points in between.