By: K.H. Koehler
A devastating truck accident can completely overturn your life, just as it did your vehicle, hitting you both physically and financially. If you’ve ever filed a personal injury lawsuit, then you know a fair settlement can stretch on for months or even years. At the same time, medical bills don’t stop magically pouring in. Such an intense financial strain can often lead to accident victims accepting a lowball settlement just to keep the lights on. But you can apply now for truck accident loans to keep things rolling.
What Is Truck Accident Lawsuit Funding?
The Federal Motor Carrier Safety Administration estimates that, based on recent data, the average cost of police-reported truck crashes exceeds $90,000 per crash, which is both staggering and life-changing. Truck accident loans are cash advances, often called “legal funding,” given to plaintiffs based on the money they expect to receive from future settlements to ease their financial burden.
Accidents that involve commercial trucks can often lead to complicated legal battles against huge corporations and their insurance companies, and that can cause long, drawn-out timelines that truck drivers can’t afford to endure. Legal funding aims to level the playing field in the trucker’s favor.
The Truck Accident Lawsuit Funding Application and Approval Process
Getting the legal funding you need is a relatively simple process. You first must have an ongoing personal injury lawsuit and be represented by a lawyer. Your case must also be related to road freight. Once you apply, the funding company works with your attorney to review your case and look at how strong your claim is, the estimated value of a potential settlement, and the chance of a successful outcome. If approved, the company will then advance a portion of the expected settlement. Importantly, if you lose your case and don’t receive a settlement, you owe the funding company nothing, as they shoulder the risk.
The Good and Bad of Accident Lawsuit Funding
Accident lawsuit funding can help you in several ways, including giving you the financial breathing room you need, since you can cover your living expenses. It also gives your attorney the time to fight for a maximum settlement without you needing to rush the process due to financial need, and it’s zero risk, so you never need to pay the money back, even if you don’t win your suit.
Unfortunately, there are some downsides to the process. The funding includes fees and interest rates that are typically higher than those of a standard loan. And the amount you receive, plus all fees and interest, is deducted directly from your final settlement, which can greatly reduce the money you get to keep.
So, as an example, the money is advanced to you, along with the agreed-upon fees and interest, and it’s only paid back if and when your case is settled. Your attorney handles the repayment, deducting it from the settlement money before you receive your portion. This kind of funding can be a smart strategy when you have a strong case, but the defense is intentionally using delays to take advantage of your financial struggles. It’s one way to get back onto the road of life.
FAQ
Can this loan affect my credit score?
No, legal funding is based on the merits of your lawsuits, not your personal credit history. Since it’s not a traditional debt, it’s not reported to credit agencies.
How much of my settlement can I get in a cash advance?
Usually, it’s a small portion of the expected settlement, averaging 10-20 percent.
How quickly can I get my money?
The initial approval and funding process can be very quick, sometimes occurring within 24 to 48 hours once all necessary documents have been filed.
Disclaimer: The information provided in this article is for general informational purposes only and does not constitute financial or legal advice. The approval and terms of lawsuit funding vary by case and provider. For specific advice regarding truck accident lawsuit funding or personal injury claims, it is recommended to consult a qualified attorney or financial advisor.
