Application for Advance Payment Form

Why this workers comp loan could cost you more than you bargained for.

Michigan law allows an individual who is currently receiving wage loss benefits to ask for an advance  payment. If the employer and its insurance company agree, weekly checks will be reduced until it is paid back.

Most employers and insurance companies will refuse an advance payment. This is because there is no guarantee that benefits will continue into the future. A magistrate can order an advance payment under certain circumstances.


A magistrate will consider the best interests of the injured worker and weigh them against the rights of the employer. If benefits will soon be disputed or a return to work is expected, the application will likely be denied.

Some reasons to ask for an advance payment are to fix a car so you can look for work or to start a business.

Know the risks

The employer or insurance company can demand interest at a rate of 10%. This is a holdback from years past and does not reflect competitive interest rates. A person may be better off with a traditional loan from a bank.

The insurance company may also think you are desperate or hiding some fact. This could start a claims investigation with insurance doctor exams and even covert surveillance of your activities.

Don’t rush

Wait until you can speak with an experienced lawyer before filing for an advance payment on your own. It is possible to negotiate a lump sum cash settlement that could result in a much better outcome.

A lawyer knows the law and what a case is worth. The small 10% fee can easily be made up with a larger settlement. If you change your mind, you owe nothing.

Call (855) 221-2667 to speak with one of our Michigan Workers Comp Lawyers. We will do everything possible to protect your legal rights and make sure that you receive fair compensation for your injury.

Alex Berman is the founder of Michigan Workers Comp Lawyers. He’s been representing injured and disabled workers exclusively for more than 35 years.  Alex has helped countless people obtain workers comp benefits and never charges a fee to evaluate a case.

Related information:

Video: Injured at work? Advice from a Michigan workers comp lawyer

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