After a car accident in Maryland, the process of seeking compensation for your injuries can be long and unpredictable. During this period, expenses continue to pile up—medical bills, mortgage or rent payments, and everyday costs. While you’re waiting for your personal injury case to settle, how do you manage financially?
Maryland car accident loans, also known as pre-settlement funding, provide an immediate cash advance against your future settlement. These funds allow you to cover essential expenses while your case is ongoing, and they can be a critical financial lifeline during a challenging time.
In this guide, we’ll explain what Maryland car accident loans are, how they work, the benefits they offer, and how to choose the right legal funding provider.
A Maryland car accident loan is a type of pre-settlement funding designed for personal injury plaintiffs waiting for their cases to settle. It is an advance on your expected settlement.
Unlike traditional loans, pre-settlement funding is not based on your credit score or income. Instead, funding is based on the strength of your case and the likelihood of a successful outcome. If you lose your case, you typically do not have to repay the advance—this makes pre-settlement funding non-recourse, meaning you only repay if you win or settle your case.
This process allows you to focus on your recovery and case while the financial stress is relieved.
Unlike traditional loans that require monthly payments, pre-settlement funding does not require you to make any payments while your case is pending. Repayment is tied directly to the settlement or judgment, so you’re not required to make any monthly payments out of pocket.
Additionally, no credit checks are required. Your eligibility for funding is determined based on the merits of your case, not your financial background or credit score.
One of the key advantages of pre-settlement funding is that it’s typically non-recourse. This means that if your case does not result in a settlement or favorable judgment, you don’t have to repay the loan. This offers plaintiffs peace of mind knowing that their finances are protected, regardless of the outcome of the case.
Many funding providers can approve your application and disburse funds within a few days of receiving your case information. This can be a crucial advantage for those who need immediate financial relief to cover medical expenses, rent, or other necessary payments.
The funds you receive from a pre-settlement loan can be used for any purpose. Some common uses include:
There are no restrictions on how you spend the funds, giving you the flexibility to handle your most urgent financial needs.
The amount of funding you can receive will depend on several factors:
Generally, the amounts provided will range from a few thousand dollars up to tens of thousands of dollars, depending on the case’s value.
Pre-settlement funding is not free. Funding companies typically charge fees and interest on the amount you advance. These fees are typically deducted from your final settlement.
It’s essential to understand the following before agreeing to a loan:
Always compare terms from different providers to ensure you get the best deal.
Yes, most pre-settlement funding providers require that you have an attorney handling your case. This is because they rely on the attorney’s evaluation of the case and its likelihood of success to determine whether to approve funding.
If you lose your case, you don’t have to repay the loan. This is the primary benefit of non-recourse funding—there is no risk to you if your case is unsuccessful.
Once your application is approved, many funding providers can transfer funds to you in 24 to 72 hours, depending on the complexity of your case and how quickly your attorney provides the necessary documentation.
When selecting a pre-settlement funding provider, it’s important to compare the following:
Maryland car accident loans (pre-settlement funding) can offer essential financial relief for individuals waiting for their personal injury cases to settle. They provide quick access to cash without the burden of monthly payments or credit checks, and they typically feature non-recourse terms, ensuring you don’t have to repay if you lose your case.
If you are facing financial difficulty while waiting for your Maryland car accident case to resolve, pre-settlement funding could provide the help you need. Before making any decision, carefully review your options and consult with your attorney to ensure that pre-settlement funding is the right choice for you.
If you’re ready to learn more about pre-settlement funding options or would like to get started with your application, Neo Legal Funding is here to help. Contact us today for a free, no-obligation consultation.
