Can I get a loan for my settlement?
While we at CrowFly assist people who have already received a settlement and are in need of funds, we often get contacted by those who do not yet have a settlement but need financial help as they await their recovery award.
If you’re having trouble making ends meet as you pursue litigation or while you’re awaiting settlement, you are not alone. A catastrophic injury or the loss of a family member turns life upside-down, and it can quickly impact somebody’s financial security. It happens often.
One solution is to seek a plaintiff loan, also called a pre-settlement advance, if you need money to continue your lawsuit or to cover your basic living expenses until your lawsuit settles and your recovery award arrives. There are numerous lending companies who will provide pre-settlement loans and post-settlement loans to help plaintiffs make ends meet in the meantime. But it is important to note that CrowFly does not provide loans.
How a lawsuit loan works
If you are pursuing litigation and need financial help, a funding company can provide you with an immediate monetary advance, with the understanding that once your settlement arrives, you will pay the company back (plus interest).
It’s important to know that most of these companies offer “non-recourse” funding arrangements, which means that if you receive funding in the middle of litigation and you do not win your lawsuit, you will not have to pay the company back for the advance you’ve received. In other words, you’re not on the hook if you do not receive a settlement after all.
We would also emphasize how critical it is that you do your research and make sure you understand how much you are borrowing, and what the associated fees and interest rates on your loan may be. It is not unlikely that you could end up paying back more than double what you borrowed against your future lawsuit settlement. It is always a good idea to consult with your attorney before you take out any pre-settlement loans.
A West Point graduate where he served as captain and military aviator, John Bair continues his commitment to our country through his efforts within the settlement planning industry. He has represented families of victims lost in the Flight 3407 crash, offered pro bono services to the families of 9/11 victims and drafted the first consumer protection bill for plaintiffs (H.R. 3699).