Getting injured at work is bad enough, but waiting for a workers’ comp settlement while medical bills and expenses are mounting all around you salts the wound.
In the majority of cases, a lawsuit battle ensues between your attorney and the insurance provider.
Sometimes, employers might outright deny responsibility for the injury, or perhaps claim that your injuries originated outside the workplace.
This litigation can easily drag on for months, or even years, even if you have a solid case.
This is where a settlement loan can help, acting as a cash advance against your pending workers’ comp settlement. You will only repay what you borrow if you win your case.
What Is a Settlement Loan & What Is Pre-Settlement Funding?
Dedicated legal funding institutions can provide settlement loans to ease the financial stress of medical bills, rent, car payments, utility bills, and other pressing expenses while your workers’ comp case is under review.
Since workers’ comp settlement loans serve as an advance against your settlement, this type of loan offers the following benefits:
- Negligible interest rates often as low as 1%
- No upfront costs
- Credit check not required
- No collateral needed
- Not repayable if your case fails to settle
When Is a Settlement Loan for Workers’ Comp Beneficial?
Due to the non-recourse nature of settlement loans for workers’ comp, you will never be required to repay your loan if you do not receive settlement. This is perhaps the primary advantage of this form of financing: the ability to borrow to defray your expenses without stressing over the outcome of your personal injury case.
With up to 90% of workers’ compensation claims – even strong claims – end up in a lengthy litigation process. Typically taking months to resolve, extreme circumstances can trigger delays of two or three years before settlement is reached.
You may be protected by law against injuries incurred in the workplace, but you also need access to cash when faced with medical bills or other expenses.
Many compensation insurance companies take an initial position of denying responsibility for the injuries or suggesting that the claimant’s injuries were sustained outside the workplace. Resultantly, litigation can be involved.
In some cases, insurance companies will behave almost obstructively with a view to dispute the claim at all costs.
Rather than plunging into credit card debt or considering high-interest alternatives like private bank loans, a workers’ comp settlement loan removes the anxiety from the aftermath of a workplace injury without any risk.
Getting a Settlement Loan for Your Workers’ Comp Case
The settlement process for your personal injury claim may drag on for months or even years, but the process for obtaining a settlement loan is quick and easy.
Here is all you need to do:
1. Engage the services of a workers’ compensation attorney
2. Approach a reputable lender for a workers’ compensation settlement loan
3. Review then sign your proposed funding agreement
4. Wait for your settlement loan to arrive
1) Engage the services of a workers’ compensation attorney
It is inadvisable to navigate the process of a workers’ compensation alone. Hiring an experienced workers’ compensation attorney will maximize your chances of a successful claim.
Beyond this, it is mandatory in many states to have legal representation to qualify for the legal funding involved with workers’ compensation loans.
Don’t leave things to chance and don’t try to achieve settlement without the right representation. Hiring a robust attorney puts you one step closer to receiving the funding you need when you need it most.
2) Approach a reputable lender for a workers’ compensation settlement loan
With an attorney retained, you can start the pre-application process required for a settlement loan.
Often, your attorney will recommend legal funding institutions who can assist with the application process. Unlike private bank loans, this form of financing requires no bank account and no credit check. Workers’ compensation settlement loans do not attract any out-of-pocket costs either.
Typically, the application process is straightforward, calling for only a brief consultation with a funding specialist. The legal funding specialist will assess the strength of your claim as well as the expected settlement amount.
If they decide to proceed, the finding specialist will issue a proposed funding agreement outlining the size of the advance and the rate of interest payable in the event of settlement.
Discuss the specifics of the proposed agreement with your attorney before you proceed.
3) Review then sign your proposed funding agreement
If you receive a proposed funding agreement from a legal funding institution, this serves as an offer letter outlining the following:
- Advance amount
- Interest
- Associated fees
Review this agreement closely with your attorney as it is a key component of the application process.
4) Wait for your settlement loan to arrive
Assuming all of the terms of proposed funding are acceptable to you, you enter into a pre-settlement loan agreement.
After this, you should receive your workers’ comp settlement loan in as little as 24 hours.
Workers’ Compensation Lawsuit Loans From Uplift Legal Funding
Unlike most personal injury cases, Uplift Legal Funding can only provide funding for workers’ compensation claims in specific states. Uplift Legal Funding can only provide funding for workers’ comp claims in:
- Connecticut
- Florida
- Louisiana
- Mississippi
- Montana
- North Dakota
- Washington
If you have a third-party negligence case in addition to your workers’ compensation claim, we can assist in nearly all states. See our states page for more information.
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