After an accident in Nevada, you may have to wait months or more before getting a settlement from the at-fault party’s insurance company. In these situations, you may consider taking out a “pre-settlement loan” to help cover your bills that are piling up in the meantime.
In short, pre-settlement loans are cash advances against your future lawsuit settlement. You are encouraged to borrow only from businesses fully licensed by the Nevada Department of Business and Industry Division of Financial Institutions.
Am I eligible for a pre-settlement loan in Nevada?
Every loan company is different, but in general, you are qualified for a pre-settlement loan if you:
- have a personal injury claim, and
- have hired an attorney
Some pre-settlement loan companies limit their clientele to victims in Nevada car accident lawsuits. Others are more general, extending loans to victims of all types of accidents, such as:
- slip and falls,
- dog bites, or
- work injuries
Many loan companies do not require
- credit checks,
- employment verification, or
- even social security numbers.
Loan companies may consult with your personal injury attorneys to obtain relevant documents. If everything goes smoothly, you can receive cash within a few days.
What is the amount of pre-settlement loans?
In most cases, Nevada loan companies advance you 10% to 15% of the expected settlement amount.
So if you expect to receive $100,000 from the insurance company after a car accident, the pre-settlement loan company will probably advance you $10,000 to $15,000.
What are the costs of pre-settlement loans?
Most reputable loan companies do not have
- upfront costs or
- application fees.
They just expect you to repay the loan plus interest once you receive your settlement.
Furthermore, most loan companies do not require you to repay the loan if you go to trial and lose.
In Nevada, a licensed lawsuit loan lender may not charge more than 40% annual interest rate (APR) on a loan.
Are there restrictions on pre-settlement loans?
There are actually no restrictions on how you may spend the money you are advanced in a pre-settlement loan in Nevada. You are advised to spend it on necessities such as:
- medical bills
- rent or mortgage
- car repairs
- credit card debt
Though you may spend the money on anything you wish.
Learn more about our Las Vegas personal injury attorneys.