If you’ve been injured in an accident or by someone’s negligence, you may have decided to consult an attorney to get legal relief. This could include compensation to cover expenses stemming from your injuries, such as lost wages, medical services and treatments, hospital costs, physical or occupational rehabilitation, repairs to your vehicle if impacted, and other possible monetary considerations.
Personal injury attorneys will file a lawsuit to protect your rights and secure a court judgment. However, even if the attorney agrees to wait on getting paid until the case is resolved there will be costs along the way for witnesses, documentation and other things. Unfortunately, you may have to pay for these out-of-pocket expenses. Here are some ways for you to cover the expenses you may be expected to pay.
Take Out a Personal Loan
You may be eligible to be approved for a personal loan, or signature loan, that will finance your legal expenses. This type of loan does not require collateral like a car title or a second mortgage. Typically, the prevailing interest rate will apply as you make payments until the lawsuit is concluded.
Use Home Equity Credit
Homeowners can sometimes use the cumulative home equity credit in their property to apply toward legal costs. The property will probably need to be appraised, and the application process can take several weeks. However, the interest rate may be slightly lower than the conventional loan rate, and you may be able to deduct the interest on your tax return.
Borrow from a Family Member
Asking a relative or a friend for money can be tricky. If you have a mutually respectful relationship, and the loan amount is not too great, you may be able to borrow from someone you know as long as you agree to repayment terms and honor those when the time comes. You should only borrow from someone who can afford to make the loan, as settlement of your case could take longer than expected.
It’s also a good idea to write down the terms of the loan, even if this is someone you’re close to. You may think that you won’t forget the terms but as time goes by memories get confused. A written contract can help prevent future problems from upsetting your relationship.
Apply for a Settlement Loan
A settlement loan offers lawsuit funding for plaintiff costs until the case goes to court or is settled out of court. The interest rate can be competitive with other types of lending (be sure to check on this), and collateral might not be required. They can be risk-free, non-recourse loans that are repaid only if you win a settlement (be sure to check on this, too). Ask your attorney about the prospect of a settlement loan to see if this option could work for you.
Funding your personal injury lawsuit is an important step toward receiving fair compensation for your claim. Consider options like these to green-light your progress through the litigation process.
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