A Pre-Settlement Loan Helps You Get Your Life in Order
If you're involved in a personal injury lawsuit of any kind, it could be years before you see any money from your settlement. In the meantime, your medical bills keep piling up, your living expenses keep right on mounting and your creditors are knocking on your door. A pre-settlement loan can help you deal with everyday expenses and medical bills while you wait for your settlement to wind its way through the complicated legal system. Here's what you should know about the benefits and pitfalls of taking out a pre-settlement loan to deal with daily and medical expenses.
What Is a Pre-settlement Loan?
A pre-settlement loan is a loan extended to someone in anticipation of them receiving a cash settlement of some sort, usually as the result of a personal injury lawsuit.
What Are the Conditions of a Pre-settlement Loan?
The specific conditions of the loan are worked out between the loan provider and the borrower, but there are some general conditions common to lenders in Advance NC. The lender will determine an amount they are willing to lend based on the projected amount of the settlement. The borrower agrees to repay the loan out of the settlement money when he or she receives it. It is not unusual for the lender and borrower to execute an agreement that payments for the pre-settlement loan will be made directly from the settlement.
Can I Take a Pre-settlement Loan for Part of the Anticipated Settlement?
Yes. It's not unusual for people to take relatively small loans against their anticipated settlement in order to pay off medical bills and have living expenses while they wait for any appeals and negotiations to run their course.
For more information about how to get a pre-settlement loan in Advance NC, contact a North Carolina lender with your questions.