If you or a loved one is struggling to make ends meet while awaiting a Jones Act claim settlement, there might be a few options for obtaining advances in order to pay for the pressing costs of damages, such as a settlement loan.
When you or your spouse have been injured in a maritime accident and are unable to work, money can get extremely tight in a hurry. There are a few ways claimants can pay for their damages while awaiting a settlement resolution. They can:
If your employer has already been providing you with funds it is categorizing as “advances”, it’s vital to speak with your attorney to learn how this will affect your settlement claim. If not handled correctly, these payments could reduce your final settlement.
A settlement loan, meanwhile, provides cash to injured seamen who are awaiting a resolution to their Jones Act case, and thus awaiting a settlement to help them cover damages they’ve incurred. To find the best option for you case, consult a Jones Act attorney as soon as practicable.
How Pre-Settlement Loans Work
Pre-settlement loans are types of funding offered primarily by independent companies to legal claim recipients who are awaiting their settlements. They can be useful in cases such as delayed Jones Act claims in which the injured seaman is pursuing the settlement, but doesn’t have the finances to make ends meet in the meantime.
These types of advances are actually not considered “loans” for legal purposes. Instead, they are a type of non-recourse funding.
Essentially, this means that the funds do not need to be paid back in the event that the claimant loses the case. Additionally, if the settlement winds up smaller than anticipated, the claimant will not owe any money; in other words, the amount repaid never exceeds the amount of the claimant’s settlement.
The Downside to Pre-Settlement Funding
The primary downside to this type of funding is the interest rate for which claimant will be responsible, which can be very high in many cases.
Another downside to pre-settlement funding while awaiting Jones Act claim compensation is that it may encourage the injured seamen to settle prematurely. This could ultimately lead to inadequate reimbursement.
Payments for settlements reached in a Jones Act claim are made by the employers or their insurance companies to seamen that have been injured on the job.
The exact amount of time the payment is issued after reaching a settlement varies. It can take up to 60 days to receive funds, although generally, it will take less than 30 days. The only cases in which the wait period may be longer are those that have some type of extenuating circumstance, something that requires the injured seamen to wait for an approval on the settlement. Each case is unique, and case-specific questions should be directed to a Jones Act attorney.
There are several things an injured seamen and/or his or her family can do to try to speed along the claims process. Firstly, securing an attorney will work wonders to expedite a claim because maritime attorneys are very familiar with claim procedures, and know how to quickly get the right information to the right people.
Secondly, it’s important to provide all the information that’s requested of you as soon as possible. This includes information about your accident, your employment history, your injuries, and any witness information or other evidence. Procrastination on the claimant’s part will only stretch out the process and further delay the settlement.
In order to ensure you and your family receive fair compensation for which you’re eligible, speak with a Jones Act claim law firm, such as The Young Firm.
We are proficient at handling maritime claims and know how to negotiate fair settlements. It’s what we do! We can review your case, help collect all necessary paperwork and evidence, and push for the settlement your family needs. Call The Young Firm at today at 866-703-2520.