Borrowing Money From Companies That Specialize in Litigation Financing While a Lawsuit is Pending
I have a personal injury case and I am broke. There are companies that advertise on TV that say they will loan me money and let me pay them back out of the settlement I will get in my personal injury case. Should I take their money?
No. The interest rate these companies charge is obscene. You should do everything you can to stay away from these companies.
How do you keep body and soul together as your case proceeds? First, if you suffer an injury that results in loss of income or significant medical expenses you should immediately start cutting back on non-essential expenses in your lifestyle. You need to do what you can to limit expenditures to essentials – shelter, utilities, food, clothing and medical care.
Second, tell your lawyer if you are having trouble making your monthly bills. He or she may be able to talk to some of your creditors, explain the situation, and get them to stop collection efforts until your case is resolved.
Third, depending on the seriousness of your injury, you may qualify for governmental benefits. Your lawyer can assist you with this issue.
Finally, you may need to seek the help of family and friends to get you through this difficult time in your life. No one likes to ask another for help, but you find that many people will provide some measure of help if they can.
I know this answer does not provide much comfort. And, indeed, some people are forced to borrow money from these TV lenders despite the obscene interest rates. My only point is that such loans should be obtained only as a last resort.
