Advance payment

Can I get an Advance on My Injury Claim?

            People see ads on TV by companies which want to pay injured victims while the case is still pending and before any settlement of the case is possible or advisable.  Naturally this stirs a lot of interest in someone who is nursing an injury and is facing the prospect of trying to pay bills while out of work.

            Unfortunately it is the rare case where using one of these advance-pay companies will make any sense, for several reasons.

·         Although the loan company will not ask for any repayment until the case settles, it will insist on getting paid in full when the settlement occurs, and the amount to be paid back will usually be very large in comparison to normal interest rates.

·         Another enticement which these loan companies often offer is that you will not have to pay anything back if you don’t get any recovery on your case.  The kicker here is that the loan company will take a very careful look at the case before making any advance payments, and unless the case is solid and very unlikely to wash out, they will not get involved.

·         For the smaller case, say one worth less than six figures, there is little chance that the loan company will have any interest.

            If a client decides to get hooked up with a loan company for an advance on a personal injury claim, we as lawyers, are prohibited by the Bar Rules from being involved in any way, but you can call us at 1-800-999-LEGAL(5342) for the best advice.