Case Loans for Personal Injury Victims
Attorney Tyson Mutrux describes in this video case loans for personal injury victims.
Hi, Tyson Mutrux here again with the Mutrux Law Firm and today I’m talking about case loans for clients. Now, this is different than case funding and that’s more for attorneys, whenever they can’t afford to take on a bigger case, they get some case funding. For attorneys, if you want information about that go to www.lawincubator.com or feel free to shoot me an email though the website either there or through www.mutruxlaw.com and I can kind of walk you through the case funding process. Or maybe even possible referring it to another attorney, that may actual be in the best interest of the client.
Back to case loans, a lot of people don’t realize you can actually get a case loan if you need the money now. So, let’s say you feel you have a very good case and your attorney feels you have a very good case, you can actually borrow money on that case. It’s by a third party, it’s not from the attorneys. We’re not allowed to do that. The Missouri Bar, the Illinois Bar don’t allow us to give case loans. And honestly, I wouldn’t want to. I don’t want to get into that business, I’m an attorney, I’m not a bank. So, what happens is you will talk to one of the lending companies. They will evaluate your case, just like we would. They put it through a stringent process. They ask us for information and if you allow us to release it, we will release it to them. They’ll evaluate the actual case and give you a loan based upon what they think your case is worth. So let’s say your case is worth $10,000, maybe they’ll give you $500 or $1,000. That’s how it works.
Now, I caution you. Usually my first inclination is to advise my clients not to get a case loan. Because usually when they’re asking for the money it’s very early in the case. And when it’s very early in the case we’re not really sure how long the case is going to take, and the interest rates are extremely high. So don’t be surprised that if you get a case loan that you’re paying back double what you borrowed. So if you borrowed $500, or $1,000 or $3,000 you paying back whatever double that amount is. Don’t be surprised, especially if your case goes to litigation that you are going to be paying a lot of interest on that. So I caution you. If you really really need the money, go ahead and do it but if it’s just a matter of you’re going to have to eat ramen noodles for a couple of months, do that because it’s going to cost you dearly if you do get a case loan.