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Pre-settlement loan: understanding the basics

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The pre settlement loan period is the time after which a plaintiff has brought a claim, but it has not yet been executed or a judgement has not been issued. At this time, the legal claim is normally still pending. Legal researchers have found that claims normally remain at this stage for an average of about 297 days. The “pre-settlement loans” is actually a cash advance against the future claims settlement. It is a payment that helps the person in need during some of the most troubling financial times they could ever face. They can help take care of daily expenses like bills and mortgages and provide financial help during such times.

These loans are not the same as traditional debt financing, and do not require monthly payments. Further, one does not have to pay if they lose their claim in court. Given these terms, there is always the allure to borrow more money than one actually needs. This might end up being a poor decision. Here are some important tips that will help you borrow the right amount;

Interest rates and fees

Before committing oneself, ask clearly about the interest rates and the fees involved. The best pre-settlement loan provider always make the process transparent. Still, it pays to find out whether there are any hidden costs or mandatory insurance fees before formally signing the agreement.

Pre-Settlement Loan: Case details

Being able to provide all the relevant details of the case at the time of application saves everyone a lot of time. The loan company will likely find it more difficult to approve the loans without all the details provided anyway. They will demand information like hard evidence, police reports and medical reports before the actual approval. Collect all this information from your lawyer and have them handy.

The lawyer

Your lawyer remains a good resource even when looking for a settlement company. Ask them for recommendations or talk to him about the company you finally choose.

The “pre-settlement loan” period is perhaps the most difficult time after a case has been lodged. With a good lawyer and pre-settlement loan company, you will be in the right hands legally and financially.