A pre-settlement advance is not a loan. An advance on a personal injury claim is only repaid by case proceeds if the plaintiff wins. If the case does not succeed, the advance does not need to be repaid.
The terms “settlement funding” and “loans” are often used interchangeably but they are not the same. Settlement funding (or a settlement advance) is much different from a bank loan, credit card cash advance or line of credit. With a loan, borrowers must pay the loan amount back with interest, usually in monthly installments. With a settlement advance, there are no […]
A father of three is driving home from work when he is rear-ended by a drunk driver. He incurs injuries to his neck and back—serious enough to keep him off work for six months. He retains an attorney who begins the process of suing the drunk driver’s insurance company. The injured plaintiff does not have adequate health insurance so medical […]