advance on settlements

Can I get an advance on my settlement to pay bills?

February 28, 2023 10:34 pm Published by Leave your thoughts

Nobody likes having to pay bills, but if you were one of the thousands of people who find yourself in a pinch because of unexpected medical bills due to an accident that was not your fault, then the responsibility can feel all the more daunting. In addition to having to meet your standard bills and responsibilities you now have the added pressure of taking care of bills that are likely sky high and of course unexpected. One of the most common questions personal injury clients ask us is if they can get an advancement on payment to cover bills. Often times clients cannot work as they are suffering from injuries yet their responsibilities are still there. We  recommend doing everything possible avoid taking an advanced settlement loan. The interest rates are extremely high and often the final amount to be repaid makes a sizeable dent in the settlement. Nevertheless, because many clients ask,  in this article we will talk about the pros and cons of taking an advance on your settlement.

New Hampshire Statute of Limitations For Personal Injury Cases

New Hampshire’s statute of limitations for personal injury cases is 3 years. This is according to RSA 508. If you don’t file your claim within this time frame, you could lose your chance to file your case.

New Hampshire’s guideline is modified comparative fault with a 51% threshold. This essentially means that if the plaintiff (the person suing) is not the majority at-fault party, damages can be reduced by relative negligence – RSA 507:7(d).

Lawsuit loans in New Hampshire may take into account the state minimum policy limits of:

  • $15,000 bodily injury liability per person
  • $30,000 bodily injury liability per accident
  • $5,000 property damage liability per accident
  • $15,000 personal injury protection

However, this is complicated by the fact that New Hampshire does not require that driver’s carry insurance. The above limits only apply for those drivers who obtain insurance.

The Pros of Taking an Advance on Settlements

It is important to think of all the ways you can cover your expenses without taking out a loan if possible. The potential advantages that tempt many clients are:

  • Additional money for living expenses. Keeping up with bills after an injury can be difficult. An advance can help you cover necessary expenses to make sure you don’t fall behind on bills.
  • Credit scores don’t matter. Settlement loans focus on the likelihood of your case succeeding, not what your credit score or income is. They’re looking to make sure they will get a return on investment.
  • Money is disbursed quickly. After your loan is approved, funding can take anywhere from a few hours to a few days. It’ll all depend on the lender.
  • Time to negotiate. When it comes to negotiating a settlement, it can be tempting to take a lower offer because you have an immediate need. An advance can help alleviate some of the pressure to take an offer.

The Cons of Taking an Advance on Settlements

While taking a settlement loan seems appealing, there are serious downsides that you need to consider before you make a decision.

  • High interest rates. The interest rates for settlement loans can range between 20%-40%, with a study from the University of Texas Law school showing that the average interest rate is around 44%.
  • Lawsuits usually don’t settle quickly. Lawsuits can take years to settle, which means you could be looking at paying interest for several years before you see any money from your case.
  • Lawsuit loans are not heavily regulated. Although many loan types are regulated federally (think mortgage loans), settlement loans are regulated at the state level.

If you are in need of legal assistance for a personal injury case in New Hampshire, contact us. Our team can help you navigate the ins and outs of the court system, and will work to get you the most favorable outcome possible. We have helped thousands of personal injury clients and are committed to fair and just legal representation. Our consultations are free and here to help you start the process.


This post was written by Cohen and Winters

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