How Can I Get By While Waiting for My Claim to Settle?
Injuries and illnesses can be expensive. It can be difficult to make ends meet while waiting for a personal injury or workers compensation case to settle. So what should you do in the mean time? Some people choose to secure financing through settlement loan companies, but that may not be the best decision.
What Are Settlement Funding Companies?
"Settlement funding" is a form of cash advance that allows people to obtain money by borrowing against the potential settlement they may receive in a legal claim. Usually, this only occurs in a personal injury claim, but some people may be able to secure a settlement advance for their workers compensation claims.
These loans can help people pay for life's necessities, such as:
- Medical treatment.
The Dangers of Using a Settlement Funding Company During Your Claim...
For the benefits settlement funding companies can provide, there also come risks. Many of these companies charge extremely high interest rates, which can end up costing the client more than they expected. It can lead to debt, which can really hurt a person's credit score and ability to pay off other loans.
Additionally, settlement funding companies present a serious problem for the attorney. Many bar associations strictly forbid attorneys from promising or estimating results. It is unfair to get a client's hopes up that they may receive a certain amount of money when it is not a done deal. Your attorney wants to help you through the difficult process of resolving a legal claim, but they do not want to promise something that they cannot guarantee.
If the attorney agrees to work with a settlement loan company, the high interest rates may take a larger chunk of the settlement than originally thought. There is no guarantee that a claim will settle within weeks, months, or even years, so the interest on a settlement loan may prevent the client from collecting any settlement at all. Communication with a settlement loan company may also violate privacy rights, so your attorney may request a signed letter stating that they can discuss some aspects of your case with the company.
How Social Security Disability Can Help During a Claim
If you are unable to work due to your injury or illness, you may be able to qualify for disability benefits from the Social Security Administration (SSA). Personal injury claimants may not be able to return to work, so if they meet the program's requirements, they can collect these benefits to help offset the cost of recovery. The Coye Law Firm advises clients to apply for Social Security disability benefits as soon as they qualify. The process can take a long time to resolve, so the sooner you apply, the sooner you may get benefits.
While you wait for your case to settle, you may have many questions. Our accident attorneys want to help you understand the case process, because we know that knowledge and guidance can help minimize your stress.