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24 Aug

An In-Depth Guide to Loaning on Your Personal Injury Settlement Before Case Resolution


Are you seeking to understand the complexities of securing a loan against your personal injury settlement before your case is concluded? At SELPH LAW, your leading personal injury law firm based in Columbus, Ohio, we understand the intricacies of this process and are committed to guiding you through every step of the way. In this in-depth guide, we provide comprehensive insights and practical solutions to empower you with the knowledge to make informed decisions.

Understanding Personal Injury Loans

Before delving into the specifics, it’s vital to first understand what personal injury loans are. Typically, these are non-recourse cash advances given to plaintiffs (the injured parties) based on the potential outcome of their ongoing personal injury lawsuit. It’s not exactly a loan in the traditional sense, because you only repay the advance if you win your case. This way, it acts more as a form of financial insurance, protecting you from the financial pressures while waiting for your case to resolve.

Reasons for Considering Personal Injury Loans

  1. Delay in settlement: Personal injury cases can be protracted, extending months, even years before a settlement is reached. The length of this process might lead to financial hardships as medical bills and daily expenses pile up.
  2. Inability to work: An accident may render you unable to work, thereby cutting off your regular income. A personal injury loan can act as a buffer, providing you with necessary funds to meet your financial obligations.
  3. Pressure for early settlement: Insurance companies may attempt to pressure you into accepting a less-than-favorable early settlement to close the case quickly. Having a personal injury loan can alleviate financial pressures, giving your lawyer the needed time to negotiate a fair settlement.

Factors to Consider

While a personal injury loan might seem like the perfect solution, it’s essential to consider the following factors before proceeding:

  1. Interest rates: Given the risk involved for lenders, personal injury loans often come with high-interest rates, potentially up to 40-60% annually. This could significantly reduce the eventual settlement you receive.
  2. Case assessment: The approval of your loan application will depend on the evaluation of your case by the lending company. If your case’s prospects of winning are low, it may be challenging to secure a loan.
  3. Legal regulations: Different states have various regulations regarding personal injury loans. Ensure to consult with an experienced personal injury attorney to understand Ohio’s specific laws.

How to Secure a Personal Injury Loan

  1. Hire a personal injury lawyer: Before anything else, securing representation by a competent lawyer like those at SELPH LAW is crucial. This ensures you have someone who can expertly guide you and negotiate with lending companies on your behalf.
  2. Choose a reputable lender: With the rise of personal injury loans, several companies offer such services. It’s crucial to work with a reliable, transparent lender with favorable terms.
  3. Apply for the loan: Your lawyer will assist in the application process, which involves providing detailed information about your case, including the nature of the accident, the injuries sustained, the expected settlement amount, and the estimated timeline for resolution.
  4. Wait for case evaluation: The lender will assess your case, often in collaboration with your lawyer. This can take a few days to a couple of weeks.
  5. Funding: If approved, the funds will be transferred to you, either as a lump sum or in stages.


While a personal injury loan can be a lifeline during challenging times, understanding its intricacies is critical to ensuring it serves as a solution rather than creating a new problem. At SELPH LAW, we’re committed to providing our clients with not just top-tier representation, but also comprehensive information to empower you on your legal journey.

Remember, each personal injury case is unique, and what works for one person might not work for another. The decision to take a personal injury loan must be carefully weighed and discussed with your attorney. If you’re based in Columbus, Ohio, and need advice on personal injury loans, don’t hesitate to reach out to us at SELPH LAW. We’re here to help.

Disclaimer: This article is intended for informational purposes only and does not constitute legal advice. Always consult with a professional attorney for any legal decisions.

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