A Workers comp claimant can readily obtain a workers comp loan while waiting for his/her Workers Compensation settlement. It is also known as Workers Compensation funding, Workers Compensation Loans, Workmans Comp Loans or Workers Compensation Cash Advance. It is a non-recourse cash advance on the expected proceeds from his/her pending workers compensation settlement.
Why Workers Comp Loan or Workers Compensation Funding is not a Loan:
Technically, Workers Comp loan is not a loan. Loans are repayable absolutely. Workers compensation funding is actually a non-recourse cash advance available now against potential future Workmans comp award or settlement. It is actually a cash advance on the future value of your case. Unlike a loan, if you lose your case you owe nothing in return. You do not owe anything to workers comp funding company, period.
In Which States Workers Comp Loan or Workers Compensation Funding is Not Available:
In many states of United States, workers compensation cash funding is not available, because of one or both of following reasons:
1. Most Workers Compensation loans funding companies will not fund a pending Workmans comp settlement, claim or lawsuit if the state statute concerning direction of payments requires the claim to be paid directly to the claimant and not first to the trust account of claimant attorney? In these states one check is sent to the attorney for their fee and a separate check is sent to the injured worker as settlement for their workers compensation lawsuit.
2. In many states under the Workers Compensation Act no third party can assert a lien on workers compensation settlement proceeds. Therefore, if workers compensation funding company cannot put a lien on the pending settlement, it will not lend money.
Following Are the States Where Workers Compensation Claims are Not Funded:
AL, AK, AR, CA, CO, DC, HI, MA, MD, MI, MN, NC, NJ, NV, NY, OH, OR, PA, RI, TN, TX, UT,VA, WA, WI & WY.
List of States Where Workers Compensation Funding or Workman Comp Loan is Available:
Arizona, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Mexico, North Dakota, Oklahoma, South Carolina, South Dakota, Vermont, West Virginia.
Third Party Personal Injury Lawsuit Loan Funding:
If you are involved in Third Party Liability lawsuit in addition to your workers compensation claim than you can get a lawsuit funding or a lawsuit loan on your pending lawsuit in every state except in North Carolina.
A third party personal injury lawsuit is a lawsuit for a work related injury, but it is against an entity other than your employer or their workers compensation insurance company.
Following are some of the examples of Third Party Personal Injury Lawsuits:
1. Third Party Lawsuit could be against the manufacturer of a machine or equipment that caused you injury while you were working. It had a defect that contributed to your, on the job injury.
2. Another good instance is a postal employee or FedEx employee, who is injured in a vehicle accident while on job, working on company business, and the third party responsible for the accident is not employed by your employer.
3. One more sample is a job site related accident that is caused by certain lapse in safety procedures, and the company responsible for work site safety is not your employer.
Unlike workers compensation claims against the employer, now you have third party workers compensation case. These type of litigations can be funded in all the states except state of N. Carolina.
Advantages of Worker Compensation Settlement Funding:
If you are waiting for your workers compensation settlement, but now have financial hardships than workers compensation funding is the right solution. It is risk free, because there is no obligation to repay the workers comp loan if you do not win your workers compensation case.
A good workers compensation funding company will not look at your credit history. Approval of Workmans comp loan is based on merits of your workers comp case. Bad credit will not preclude you from obtaining funding.
Pearl of Wisdom:
And remember that – The Universe Helps Those Who Help Themselves.
Workers Compensation Funding helps you to take care of your monthly bills and eliminate emotional stress. But a Workmans Comp loan can help you keep on track, keep your case moving forward, and keep creditors at bay. Workers Compensation funding gives you cash now to handle bills or expenses while you wait for a fair resolution of your claim.
Copyright (c) 2011 Paul Sherman
