Warning about lawsuit cash advance and how to get a loan directly from workers comp.
It can be extremely hard for a person on workers comp. Wage loss benefits are typically just 60% of gross earnings. Some people get even less based upon “wage earning capacity.”
Many people have financial difficulties including paying the mortgage, school tuition, and putting food on the table. Trying to support a family on a reduced income just doesn’t work.
We do not recommend that our clients seek cash advances on their workers comp cases. Many of these loan companies charge excessive fees and interest rates. Here are some better options.
If you are currently receiving lost wages under workers comp then you can seek an advanced payment of benefits. This is not a loan but accelerated payment of weekly checks. You will pay interest but no excessive fees.
Insurance companies recoup their money by reducing future checks. Most will refuse an advance payment request because there are no guarantees that lost wages will continue indefinitely.
A magistrate can order an advance payment under specific circumstances. Some good reasons to ask for an advance payment are to fix a car if looking for a new job or to finish school. Paying off debt has not been found to be a good reason.
Many of our clients opt to trade their workers comp benefits for a lump sum cash payment. This allows them to seek medical treatment and vocational rehabilitation on their own terms. A cash payment also helps them get back on their feet.
Insurance companies treat settlements like any other business decision and it must make financial sense for them to write a big check. Factors to be considered include length of disability and future medical expense.
It is always a good idea to speak with an experienced attorney before discussing settlement with the insurance company. Fees are capped at 10% and are easily made up with higher negotiated amounts.
Michigan Workers Comp Lawyers never charges a fee to evaluate a potential case. Our law firm has represented injured and disabled workers exclusively for more than 35 years. Call (855) 221-2667 for a free consultation today.
Photo courtesy of Creative Commons, by 401(K) 2013.