Receiving a cash advance from a pending settlement is very likely a blessing for most people, especially when you consider all the factors of an injury and lawsuit. However, in addition to advantages, there are also some negative aspects to receiving a cash advance on potential settlement proceeds. Pro #1 Cash When You Need It The most prominent advantage to receiving a settlement cash advance is that you get money in your pocket when you need it most. Going through a lawsuit is a trying time; even if you have not had to file suit, the prospect of doing so wears on you. You have quite possibly incurred a lot of bills, injuries, and may not be able to work. If this is the case, having the option of receiving an advance from your settlement is priceless. Con #1 Hard to Finalize Settlement You may find, after you have received a cash advance, it becomes more difficult to settle your case. When you receive a cash advance on a settlement, a lien is put in place which has to be paid when the case is settled. When this happens, it may become necessary for your case to be settled for a higher amount to pay all of the attorneys fees and medical bills incurred. If the insurance company does not want to pay up, it could mean longer until your case is settled. Pro#2 Your Money Before Everyone Else Another advantage to getting a cash advance is that it puts you in line before everyone else in order of payment. Normally, when a lawsuit it settled, the attorneys fees are paid first, then medical bills, and then the client gets money if there is anything left. With a cash advance, you get money before anyone else. Con #2 Attorney Approval Some cash advances will have to be approved by your attorney, because it is putting a lien on your settlement proceeds. If your attorney does not agree, you may have a problem on your hands. |
