You will likely find that most personal injury lawyers operate on a no-win, no-fee basis. This is called contingency, and means that you won’t need to pay any lawyer fees unless you have a successful outcome.
However, if you are self-employed or even employed by someone else, you may find that taking time off work to recover from your injuries can cause financial difficulties. Waiting for a settlement figure may also leave outstanding medical bills and vehicle repair costs. If you are struggling to come up with ways to cover those costs before reaching a settlement, the following funding options may be worth your consideration.
Lawsuit Loans
Even if you’re unsure how to compare lawsuit loans, find the best lender, or discover the best deal, lawsuit loans may still be worth your while. Such lenders receive information from your lawyer to understand the facts of your case before lending you up to your settlement figure.
When the money comes in, you can repay the loan, and they take a fee. If you were unsuccessful in your claim, you don’t have to refund the money. When you’re stressed about your financial situation and managing your bills, this funding avenue can remove much of that stress from your shoulders.
Savings Account
If you cannot get a lawsuit loan or want to consider other options, your personal funds can be there to fall back on. A savings account you held for your retirement or a rainy day may be put to good use. However, there can be a lot of risks associated with using your own savings, which is why lawsuit loans may be an option you consider first. If you use up all your savings and your case isn’t successful, you won’t have emergency funds to fall back on.
Friends and Family
Friends and family will always do their best to help you out of some tricky situations. A personal injury case that’s making you struggle financially can be that challenging situation that calls for their help.
Asking for financial help is never easy, whether it’s for your business or a legal problem. However, it can sometimes be the only option you see working. To protect all involved, consider seeing a lawyer to make the loan a formal agreement.
However, borrowing from friends and family shouldn’t be your first choice if other options are available. Borrowing from those you love can lead to strained relationships, especially if they need to call in the loan sooner than you had anticipated.
Selling Assets
With growing medical bills and car repairs, and no end in sight with your personal injury claim, selling assets can be something worth considering. Even freeing up a small amount of cash can provide much-needed relief. If you don’t have many assets to sell, consider downgrading the ones you have instead. For example, selling your $20,000 car for a $10,000 model might be how you cover your most urgent bills.
Personal injury cases can drag on for months or even longer. During this time, you may not be able to earn a living or cover your accident-related bills. Lawsuit loans, asset sales, and help from friends and family may be how you bridge the gap before you receive the money you’re owed.
