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 in legal fees, stalling tactics, and a low ball 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.
In This Article
- Why You Likely Need Funding for Your Car Accident Case
- What Are Car Accident Loans?
- 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
- Why High Rise Financial Is Your Ideal Car Accident Lender
Why You Likely Need Funding for Your Car Accident Case
If you’ve 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.
What Are Car Accident Loans?
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.
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 a 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.
Why High Rise Financial Is Your Ideal Car Accident 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.