A Brief Guide for Post Settlement Loan Seekers

When you ultimately receive the verdict of your personal injury lawsuit, you will be quite relieved to know that your bad days have come to an end if you win the case. But unfortunately, it is not the end. Getting your settlement check may take time. Sometimes you can have to wait for several months before you get to hold it in your hand. This waiting period can take a toll on your financial condition. In such cases, opting for a post-settlement loan may be the right solution for you.

How long do you have to wait for the post-settlement money to arrive? 

Once you sign a settlement agreement with your defendant, the latter will pay a part of the money. You cannot expect the full money at once as there are no rules that say that the defendant has to pay the agreed amount within a certain time. So, the time is not fixed, and it might take months or even years before you finally receive the whole amount. That’s why a post-settlement loan becomes the only way out for some people who are yet to receive their settlement checks to take care of their financial concerns. After applying for the loan, if you qualify, you can have the money within a brief span (sometimes within 24 hours). Such short term loans can resolve the financial troubles of many.

Will you qualify for the loan?

You have to meet a few requirements to receive the post-settlement loan. You must have a lawyer representing your lawsuit and the papers related to the settlement offer stating the amount. Mostly these two are the basic requisites. The cases that are considered eligible for a post-settlement loan are –

  • Personal injury
  • Auto accidents
  • Defective medical devices
  • Employment-related litigation
  • Product liability
  • Labor accidents
  • Defective drugs

Once you have the documents of the settlement award, you can easily get a post-settlement loan. The interest rate is lower than of a pre-settlement loan as you have won the case and the funding company runs a lower risk in lending the money to you. But interest rates vary from company to company.

Information that you need to provide to get the loan

You will need the following while applying for the loan:

  • The amount of money you need
  • A letter from your lawyer that states the settlement amount
  • A copy of your lawyer’s intimation letter to your defendant’s lawyer or insurance company stating their obligation
  • A proof of the executed general release

The whole process will be taken care of by your lawyer.

Post-settlement loan interest rates

The interest rates vary, and it entirely depends on the funding company you choose to apply for the loan. Your case scenario may also be responsible for the determination of the interest rates by the lender. The interest rate may be as low as 8 to 10%, but it can also go up to 15%.


So, if you find yourself in a situation where controlling your financial condition is rolling out of your hand due to the impending settlement money, applying for a post-settlement loan may be the wisest thing to do.