What are case loans?
Attorney Tyson Mutrux describes in this video case loans and their purpose in your personal injury case.
Hi, Tyson Mutrux here again with the Mutrux Law Firm and today I’m answering the question of, “What is a case loan, and what is it good for?”
A case loan is actually a loan that goes to you as the client. It is an advance on your injury settlement. So they will actually evaluate the case. They have attorneys there at their company that will actually evaluate the case to determine maybe what they think the case is worth. They will then give you a settlement based upon that number that they come up with. Now, it’s not going to be for the full settlement amount. It will be for something substantially lower. So, lets say your case is worth $5,000 in your pocket, maybe they’ll give you a $500, or $1000 loan.
But you have to be very careful with these types of loans. They are good in some cases where let’s say the case is going to be settled in the next few months, but you need the money now to pay some bills. That’s a situations where I may recommend that a client get a case loan. However, if it’s an amount that’s higher than $500- $1000 dollars, I don’t typically recommend that you get a case loan. Especially if the case is not going to settle or go to trial for a year, or 18 months, because that interest is accruing every single month. Even though I have advised against clients to get a case loan, there are times when they are paying back more than double of the loan that they got.