Suffering critical injuries in a car accident is never easy. The aftermath can be just as troubling as the collision itself. You may be able to hold the liable party accountable, but recovering the compensation you deserve could be more difficult than you thought.
While you wait for your car accident settlement to come in, you may be able to get the financial assistance you need to stay afloat. Explore your Texas car accident loan options further when you reach out to our team of loan specialists at High Rise Financial for help.
- What Makes Lawsuit Loans Different from Bank Loans or Lines of Credit?
- Why You Likely Need Funding for Your Car Accident Case
- How Texas Car Accident Insurance Settlements Work
- What Are Car Accident Loans in Texas?
- How Much Is Your Car Accident Claim Worth?
- What Expenses Can You Pay with Legal Funding in Texas?
- Is Texas Legal Funding Safe?
- Are You Eligible for Car Accident Loans?
- How You Can Apply for a Texas Car Accident Loan
- Car Accident Lawsuit Loan Costs
- How to Spend Your Texas Car Accident Loans
- Paying Back Your Car Accident Legal Funding
- Why High Rise Financial Is Your Ideal Car Accident Loan Lender
What Makes Lawsuit Loans Different from Bank Loans or Lines of Credit?
Lawsuit loans are quite different from traditional lines of credit or loans you would receive from another type of financial institution. Some of the primary differences between lawsuit loans and bank loans include:
- Bank loans need to be paid back with interest.
- Car accident lawsuit loans never anchor compound interest.
- Approval for lines of credit or bank loans is contingent upon having a good credit score.
- Your credit score is irrelevant when high-rise financial loan specialists review your application.
- Bank loans and lines of credit require the applicant to have a steady source of income and proof of income through pay stubs or work verification.
- Car accident lawsuit loans in Texas never require an applicant to have a source of income— as your injuries may have made it impossible for you to continue working while you recuperate.
These are only a few of the primary differences between traditional bank loans and lawsuit loans. When you have been involved in a car accident, accessing the compensation you need when you may need it most could be more challenging than you thought.
By seeking a car accident loan in Texas, you could be approved for up to 20% of the compensation you will be awarded in your insurance and several claims. Find out how much we could approve your lawsuit loan for today when you contact High Rise Financial to discuss the circumstances of your case.
Why You Likely Need Funding for Your Car Accident Case
If you have suffered severe or catastrophic injuries, you may be facing extensive financial hardship. You may not be able to work, or the time you spent out of work may have landed you in extensive debt. Unfortunately, your health insurance may cover just a fraction of your costs.
Meanwhile, it may be years before your case even goes to trial, and with every passing day, your case may grow weaker. Witnesses forget what they saw or move away, and evidence may get inadvertently misplaced. In a few years, your estimated award may go down significantly.
In the meantime, you have a mounting pile of bills to pay today, and your earning ability may have been severely compromised. It’s tempting to take the first settlement offer an insurer throws at you. Keep in mind that nine times out of ten, they have the financial resources to pay more – much more.
How Texas Car Accident Insurance Settlements Work
Are you currently pursuing a personal injury case due to a car accident in Texas? Despite the merits of your case, civil litigation can take a long way to wind its way through the judicial system. In fact, some corporate defense attorneys use an array of stalling tactics to prolong these types of cases.
Why do they do this? Well, the longer the case lasts, the more it will cost you in legal fees and your law firm in expenses. And as you and your law firm rack up more and more debt, you’re more likely to take a lowball settlement offer.
Insurance agencies have calculated just how much they have to spend on legal fees, stalling tactics, and a lowball settlement to get away with paying you less than you deserve. They may drag a court case out for years simply because cutting you a five-figure or six-figure check may mean they can avoid a seven or eight-figure award at trial. They’ll put you under financial pressure to encourage you to settle unless you have the financial resources to stay afloat while you wait for a case to be resolved.
What Are Car Accident Loans in Texas?
Not all car accident cases result in the large corporation squashing the little guy. Sometimes the little guy has the resources to fight back. Car accident loans are one reliable source of financing that can help car accident victims get the money they need without having to bow to the financial pressure the defense is exerting.
When you get Texas legal funding, you’re receiving funding for a percentage of the eventual award or settlement. If your lawyer doesn’t win the case, you don’t owe any money. But if you do, then the lender is entitled to a portion of the award or settlement amount you obtain.
For example, a lender might provide you with a $100,000 car accident loan for 20 percent of your award. If you are awarded $1,000,000, you’ll owe the lender $200,000 of your award. However, if your lawyer loses the case, you’ll owe nothing.
How Much Is Your Car Accident Claim Worth?
You could be awarded up to 20% of your car accident settlement. However, the exact amount you will be awarded can be based upon several factors, including the value of your claim, whether you are filing a claim with the insurance company or a civil lawsuit, and other circumstances.
To get a better idea of what your car accident loan could be worth, you may consider going over the ways your life has been affected by your car accident injuries and the collision itself. Some of the different types of damages you could be awarded in your car accident insurance claim and civil lawsuit include:
Economic damages describe financial losses. After a car accident, you may have substantial vehicle repairs and astronomical medical expenses. Additionally, you could suffer from a loss of income due to your inability to work.
You have a right to recover compensation for your future medical care, your inability to earn a living in the future, your loss of retirement savings contributions and bonuses, and the costs of hiring childcare providers or individuals to maintain your household while you recuperate.
Non-economic damages describe the ways your life has been impacted by your car accident in Texas. These losses do not have verifiable monetary values. Instead, to ensure you are compensated for your suffering, your attorney will need to quantify them accordingly.
Damages can be calculated on a per diem basis or through the multiplier method. Examples of non-economic damages you could recover include:
- Loss of consortium
- Skin scarring
- Damage to your personal and professional reputations
- Pain and suffering
- Emotional trauma
Punitive damages could also be awarded in your Texas car accident claim. However, punitive damages are rarely awarded in car accident cases. They may be awarded if the courts find the defendant’s actions grossly negligent or abhorrent.
The court system may want to punish the defendant beyond your compensable damages to ensure they are held accountable to the fullest extent of the law. For example, if the person who struck you was intending to do so, the court may impose punitive damages as a way to punish them and let the community know that similar actions will not be tolerated in the future.
What Expenses Can You Pay with Legal Funding in Texas?
You can use your Texas lawsuit loan money to cover various expenses. The most common types of expenses car accident loans are used for include:
- Debt incurred as a result of, or before, the accident.
- Housing expenses, such as rent or mortgage payments.
- Living expenses, such as groceries, utilities, and recreation.
- Medical expenses.
- Tuition and educational expenses.
- Vehicle repair or replacement costs.
Lawsuit loans in Texas are meant to keep you solvent while waiting for your case to make its way through the legal system. However, there generally aren’t restrictions on how the funds can be used. A few states have prohibitions on using these funds on certain legal costs, so you’ll want to check with your lender before spending your money on court costs or legal fees.
Is Texas Legal Funding Safe?
If you’re already in debt due to your car accident or for unrelated reasons, you may automatically think that legal funding in Texas is a bad idea. However, the great news about car accident loans is that there’s no risk to you.
If you lose the case, you owe nothing. So you don’t need to worry about going deeper into debt, hits to your credit score, or possible judgments and liens resulting from your Texas car accident loan. You only owe money when you win the case, and that money comes directly out of your award or settlement.
Are You Eligible for Car Accident Loans?
Not everyone is eligible for a Texas car accident loan. To be eligible:
- The plaintiff in a car accident case in Texas with a strong likelihood of winning a substantial award or obtaining a high settlement.
- The defendant was clearly negligent, or you have an otherwise strong legal case based on the facts.
- You have to be dealing with substantial damages, including economic losses that can be calculated in dollars and/or non-economic losses, such as pain and suffering.
- You need to be working with a lawyer who is taking your case on contingency and is willing to participate in the financing process.
The application and underwriting process doesn’t require you to have substantial income, high credit scores, or assets tucked away. Instead, lenders will assess the risk and potential rewards of funding the case. The amount you can receive varies based on the quality of the case and your lender’s internal rules.
How You Can Apply for a Texas Car Accident Loan
The first step to pursuing a Texas car accident loan involves you talking with your attorney. Because a lender must evaluate the case, they must speak with your lawyer at length and be able to review certain legal documents. Lenders typically sign nondisclosure agreements so that the details of your case will be kept confidential.
But once you and your attorney have agreed to participate in the process, a lender’s attorneys and underwriters will start reviewing your case. Most lenders will lend between 10 and 20 percent of your case’s value. So, if you expect a $500,000 award, you could qualify for as much as $100,000 in legal financing.
Car Accident Lawsuit Loan Costs
It does not cost anything to apply for a car accident lawsuit loan. And working with your car accident lawyer, you are likely working on a contingency fee.
This means your lawyer has taken on the risk of pursuing your case. They have covered all of your court costs, the costs of hiring witnesses and others to review your case, and the other related expenses that come with pursuing maximum compensation. They likely have not asked you to cover any out-of-pocket expenses or pay any attorneys fees. And they will not – until they win your case.
You do not have to worry about paying back interest on your car accident loan, as our loans never carry compound interest. In this way, there is little to no risk in reaching out to your attorney to find out whether a car accident lawsuit loan is in your best interests.
How to Spend Your Texas Car Accident Loans
After receiving your Texas car accident loans, the money is yours to spend however you need to. People who are struggling after a car accident often find themselves dealing with exorbitant expenses that need to be covered, or face severe financial distress. Examples of some of the costs covered by car accident loans in Texas include:
- Housing payments, such as your rent or mortgage
- Electric bills, utility bills, gas bills, and Internet expenses
- Costs of groceries, gas, and other everyday household items
- Costs of replacing or repairing your vehicle
- Costs of medical expenses, ongoing medical treatment, and outstanding medical debt
- Auto insurance, health insurance, and life insurance premiums
- Monthly car payments
Paying Back Your Car Accident Legal Funding
One of the top questions car accident victims have after lawsuit loan approval is how they will pay back their loan. The good news is that you do not need to worry about paying back your loan. If your lawyer wins your case, when your settlement funds come in, your lawyer will pay back your legal funding using your settlement.
However, if your lawyer does not win your case, you will not have to worry about debt collection attempts or other adverse activity from High Rise Financial. You are only required to pay back your lawsuit loan if your lawyer when’s your case. If not, High Rise Financial will never attempt to hold you accountable.
Why High Rise Financial Is Your Ideal Car Accident Loan Lender
If the prospect of a car accident loan is attractive to you, then you should talk with your attorney about High Rise Financial. We’ve provided car accident loans to many plaintiffs throughout Texas. In fact, we formed High Rise Financial to help people just like you receive the money they need for living expenses when their personal injury case has them facing economic hardship.
When you work with High Rise Financial, you’ll receive the funding you need to live and resist the pressure to take a lowball settlement offer. If you lose the case, you won’t owe us a dime. Contact us today so we can start reviewing your case.