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Pre-Settlement Loans: All You Need to Know

After an accident, life does not stop; the bills continue to pile up, and you have to pay them. Some accidents cause severe injuries that may force you to quit your job. With no income, you may have to use your savings to pay for your medical bills and household needs. However, this does not need to be the case. A pre-settlement loan could be the solution you need.

A lawsuit loan could be of great help to you and your family. If you are injured in Nevada and need money urgently, you can get a lawsuit loan in Nevada from Money First Lending, one of the best lawsuit lending companies in Nevada.

However, before you apply for that pre-settlement loan, there are a few things you should know.

What Is a Pre-Settlement Loan?

A pre-settlement loan is a cash advance given to a plaintiff of a personal injury suit or a wrongful injury suit paid off by the settlement given at the end of the suit. The legal timeline of a suit is unpredictable; you cannot be sure when the suit will end. In the meantime, you will have to pay for your expenses such as rent, mortgage, utility bills, tuition fees, among others. A pre-settlement loan will help you pay for this as you wait for your settlement.

Types of Pre-Settlement Loans

A pre-settlement loan is available to almost all types of lawsuits, depending on the lending company you choose to work with. The most common lawsuits that are involved in pre-settlement claims are personal injury claims and wrongful death.

Before you make the call, you should consult your attorney. They can advise you if your suit is strong enough to win the case and if you qualify for a pre-settlement loan. If you do not have an attorney, do extensive research on your own and ask questions at the first meeting with a lending company representative.

Who Can Apply for a Pre-Settlement Loan?

You need to have an active lawsuit to qualify for a lawsuit loan. You also need to be the beneficiary of the settlement before you can apply for the loan. The lawsuit lending company will research the case to establish that you are the plaintiff and the sole beneficiary of the settlement.

In case of a wrongful death suit with multiple beneficiaries, you should at least get permission or confirmation from the other beneficiaries before you apply for the loan.

Restrictions on Pre-Settlement Loans

In Nevada, the laws governing lawsuit lending aim to protect the consumers from lending companies with predatory lending practices. Some of the restrictions include the requirement that the interest charged should not exceed 40% per year. A lending company should not lend more than 500,000 US dollars per lawsuit. The lending company should not try to influence the borrower’s decision regarding the settlement, among other restrictions.

Use of Pre-Settlement Loans

There is no specific requirement on how to use the money from the pre-settlement loan. The money is yours to use as you wish, but you also have to be careful about how you spend it. Getting a large sum of money can cause excitement, and you might end up using the money on unnecessary expenses; you should borrow the exact amount you need to avoid wasting it on other things.

Reach Out to a Nevada Lawsuit Lending Company

If you have filed a personal injury suit in Nevada and need some cash to pay for your basic needs, Money First Lending is there for you. You do not have to continue suffering financially. A pre-settlement loan will help you survive the difficult financial times as you wait for the settlement.