Three separate wildfires erupted on Maui on August 8, 2023, resulting in the deadliest natural disaster in the state of Hawaii’s history. These fires include the Lahaina Fire, which is approximately 90% contained (and has affected over 2,100 acres), the Olinda Fire, which is 85% contained (and has affected over 1,000 acres), and the Kula Fire, which is 90% contained (and has affected over 200 acres). All of this is as of August 28, 2023, according to Maui County officials.
The wildfires ravages through the island due to a combination of dry drought conditions and high winds. Thousands of buildings, residential and commercial alike, burned to the ground.
The Lahaina Fire, specifically, displaced about 6,000 people, which is approximately half of Lahaina’s population. So far, 115 people have been declared dead due to the fire. Officials are no longer searching for victims on land; rather, they have moved search efforts into the water. According to reports, 388 people were unaccounted for.
Many of the people who have been affected by the fires will likely have grounds to file claims, whether it is against their homeowner’s insurance policy, renter’s insurance policy, private property owners, and even the government. Of course, claims can take months and even years to settle. However, thousands of people are suffering the consequences of the fire – unable to afford housing, food, medical care. Many were left jobless as buildings burned down. Many others are struggling to figure out how they will put their loved ones to rest even though they lost everything.
As already said, many people will have the right to file claims – of course, they will be eligible to recover significant compensation for their claims. However, it is unlikely that they will be able to afford to wait for their claims to settle. For these claimants, lawsuit loans are a great option.
What is a Lawsuit Loan?
A lawsuit loan is essentially an advance on your settlement. It is a loan borrowed against the projected settlement of your case. It provides claimants with upfront funds. Lawsuit loans are good options for those who were left injured and unable to work to cover everyday costs or sudden costs directly resulting from the incident, whether its medical bills or funeral bills, for example.
Can I Get an Advance on My Case?
You may be able to get an advance on your case. To be able to get an advance on your case, you must be eligible to recover compensation on your case. Lawsuit loans borrow funds from your projected settlement.
To understand whether you can get an advance on your case, you must understand how lawsuit loans work. First and foremost, you must have a case. You must have already started the legal process with the legal team of your choice. In many cases, you can ask your legal team to resources on finding a lawsuit loan funding; sometimes, the legal team actually offers lawsuit loans in-office (although through a separate department). The next step is a case evaluation. The funding company will evaluate your case thoroughly to determine two things – whether your case is likely to reach a successful outcome and the estimated value of your case. Then, they will either approve or deny your loan amount. If your loan is approved, you will receive the funds shortly after.
It is also important to note that you will need to sign a loan agreement that will provide you with the exact terms of your loan – and, more specifically, the repayment of the loan. Never sign something that you do not fully understand.
So yes, if you have a valid claim with a projected payout, you could be eligible to get an advance on your case.
How Much Can I Get from Lawsuit Funding?
The answer to this question will depend on both the projected value of your claim and the loan amount that you are requesting. For example, you may be requesting a $20,000 loan to cover your rental for six months. However, if your case is worth $20,000 or less, then your loan will likely not be approved. On the other hand, if your case is worth $150,000, for example, a $20,000 loan can be approved with no issues. The remaining balance would likely be more than enough to cover legal costs, medical bills/liens, interest, and other costs associated with your case. Remember that a lawsuit loan is an advance on your final payout, not on the entire settlement. Settlement funds still need to cover a number of other fees.
For more information about how much you could get from a lawsuit loan on your case, contact us today. Our experts can evaluate your case and provide you with the answer that you are looking for.
Will I Be Charged Interest on my Lawsuit Loan?
Yes – lawsuit loans or settlement advances are subject to interest. Although these loans usually have low rates (typically from 2% to 5%), it adds up and can prove to be a significant sum at the end of the loan term. Once your lawsuit settles, you will need to repay the original loan amount plus interest. Interest may be a few hundred dollars or a few thousand dollars depending on the loan amount and the length of the loan. We recommend that you become familiar with the specific terms of your lawsuit loan.
Paying Back My Lawsuit Loan
When your case settles, repayment will be automatic. The settlement will, of course, cover the costs like court fees, processing fees, medical liens, and more. The remainder will cover the lawsuit loan plus the interest. You will receive any other funds.
What if my lawsuit is unsuccessful? If your legal team cannot effectively settle your case, you typically will not have to pay anything. This is because lawsuit loans are generally risk-free. In other words, you will only have to repay the loan if your lawsuit is successful.
Contact the Downtown L.A. Law Group about a Lawsuit Loan
We understand the struggles that you and your family might be facing after being affected by the Maui fires. A lawsuit loan might be the best option for you and your family to ensure that you have financial stability while your case settles. If you are interested in applying for a lawsuit loan, contact our team here at the Downtown L.A. Law Group as soon as possible. Our lawsuit loans are risk-free. We accept all the risk, so if your case is ultimately unsuccessful, you will not have to pay anything at all. Do not hesitate to contact us today for more information about getting a lawsuit loan on your case.