What Can You Use Lawsuit Loans to Pay For?
Legal battles can be lengthy, emotionally draining, and financially straining. For many individuals involved in personal injury, wrongful death, or other civil lawsuits, the financial burden of everyday expenses can be overwhelming. In such cases, lawsuit loans, also known as litigation funding or pre-settlement funding, can provide much-needed relief. These loans offer plaintiffs an advance on their potential settlement, helping them cover various expenses during the course of their lawsuit. In this article, we examine how to use lawsuit loans and how their use can make a difference for plaintiffs seeking justice.
While most lawsuit loans are offered to plaintiffs who hire attorneys retained on a contingency fee basis, other legal expenses can also arise. These might include filing fees, court costs, expert witness fees, court reporting and other legal expenses. Lawsuit loans help fray these costs.
Personal injury lawsuit loans are also a common way to use lawsuit loans. If your lawsuit involves a personal injury claim, you may have substantial medical bills to deal with. Personal injury plaintiffs use lawsuit loans to pay for current and future medical expenses, such as surgeries, rehabilitation, physical therapy, and prescription medications. Plaintiffs also use pre-settlement funding for co-payments that may accumulate from treatment. Using lawsuit loans for medical treatment may be the most valuable since it allows plaintiffs to focus on recovery without worrying about mounting medical debts.
During a lawsuit, plaintiffs may find themselves unable to work due to their injuries or other circumstances related to their legal battle. In such cases, lawsuit funding can cover everyday living expenses, including rent or mortgage payments, utilities, groceries, and transportation. These loans can help maintain financial stability while the case progresses.
Use Lawsuit Loans for Housing
Avoiding foreclosure or eviction is a top priority for plaintiffs who have trouble making ends meet. Many use lawsuit loans to keep their mortgage or rent payments current and make future payments prior to settlement. With the security of a roof over their heads, plaintiffs can rest easy, heal, and endure the sometime long and arduous litigation process.
Outstanding debts, such as credit card balances or personal loans, can create significant financial stress. Add this to the inability to earn as much as prior to an injury and you have a recipe for stress. Using lawsuit loans to pay off past debts or at least keep them current is a valid use of the funds. This often avoids accumulating interest and large late fees on past due amounts which can further trouble plaintiffs who are already in financial straits.
Lawsuit Loans for Transportation
If your lawsuit involves a car accident, you can use a lawsuit loan to repair or replace your vehicle. This is crucial for those who rely on their cars for transportation to work or medical appointments. For plaintiffs who do not own a car, many use lawsuit loans to pay for other modes of transportation. These might include:
- Car service
- Uber rides
- Bus passes
- Train passes
For plaintiffs with ongoing educational expenses, such as tuition or student loans, pre-settlement funding can provide the financial resources needed to continue their studies. This is especially important for individuals who are unable to work due to the circumstances surrounding their lawsuits. Using lawsuit funding advances to remain in school ensures students remain on the path toward their goals.
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Use Lawsuit Loans for Other Expenses
Other legitimate pre-settlement funding uses are plentiful and might include:
- Business expenses – entrepreneurs and small business owners may use lawsuit loans to cover business expenses, payroll, or other overhead costs, ensuring their ventures continue to operate smoothly.
- Family needs – Families of plaintiffs are often affected by the financial strain of a lawsuit. Lawsuit loans can provide for the needs of your spouse, children, or other dependents, such as educational expenses, healthcare, and daily living costs.
- Quality of Life – Pre-settlement funding can also maintain or improve your quality of life during the legal process. This may include funding for vacations, home improvements, or other discretionary spending.
Pre-settlement funding serves as a financial lifeline for plaintiffs, enabling them to cover a wide range of expenses while they await a final recovery. They provide financial peace of mind, allowing plaintiffs to focus on their case and maintain their stability during litigation.
Above, we outlined many common ways plaintiffs use pre-settlement funding. Truth be told however, there are no restrictions on their use. Thus, there is no improper way to utilize the power of lawsuit loans. The money is yours to do with as you sit fit. After all, it is your money.
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