When pursuing a wrongful death claim in California, many discussions take place regarding how much survivors might receive to cover medical bills, lost income and caring for dependents. However, cases take some time to settle, so what should families do in the interim to make ends meet?
One option many families now turn to is a settlement loan. Essentially, individuals get the opportunity to take out loans backed by the settlement amount the lenders think they might receive. They then pay that money back with interest and fees when they receive the settlement.
How to qualify for a loan
Credit Karma explains that to become eligible, an individual first needs to file a legal claim. Not all lawsuits qualify for a settlement loan and some lenders might prefer to work with specific types of cases. Even so, these tend to qualify:
- Car crashes
- Workplace accidents
- Medical malpractice
- Product liability
- Premises liability
- Wrongful death
When to get one
Families in a desperate financial situation might have no choice but to consider a settlement loan. Even when individuals have options, a settlement loan might still become the best choice they have. It all depends on the situation and the lender’s terms.
USA Today explains that most lenders do not have an application fee, which might help to make the process more affordable. It also explains that people can ask the lender to waive the fee. Lenders that refuse to do this might prove untrustworthy. Borrowers should also pay close attention to the interest rates and the payback figure.
Taking out debt during a financial crisis prompted by a wrongful death case can feel terrifying. It is important not to rush into this decision. Always exercise caution and consider the loan terms carefully before making a choice.