Lawsuit Loan – Get the Loan You Need to Settle Your Lawsuit
What Is A “Lawsuit Loan”?
A Lawsuit loan is a type of pre-settlement funding designed to help you pay your bills when involved in a personal injury lawsuit. In reality, the cash isn’t really a “loan” but rather an advance. It’ not considered a loan because you do not make monthly payments on it, and you do not pay it back unless you win your personal injury case.
From the standpoint of the company giving you the money, the cash that you receive is considered and “investment” or a kind of venture capital. They take the risk of giving you the money in exchange for a payback if you win your case.
Are there better lawsuit financing options? collection laws in California
Depending on your credit and finances, you may have other options for funding your lawsuit and personal expenses. For example, you may want to get a credit card cash advance or home-equity line of credit. Unfortunately, as you may have already found out, these types of funding sources are drying up in today’s recessionary economy. Also, credit card advances and home equity lines require monthly payments. Lawsuit loans do not require a payment until after you win your case. Thus, they will not be a drain on your current finances.
Using a pre-settlement loan to your case is advantageous because it poses no risk to you. For example, in the event of your lawsuit settling for less than the amount sanctioned by the cash advance, or in the event of the defendant ultimately prevailing, you do not have any obligation to the company funding the lawsuit.
“Can my lawyer give me a loan for my pending lawsuit?”
Because of concerns that a conflict of interest might arise between your lawyer and you a lawyer isn’t permitted to lend you money. Many bar associations specifically prohibit lending money to a client. However, a lawyer can and often does refer a client to a lawsuit financing company.
“Should I get a Lawsuit Loan?
To be perfectly blunt, in some cases, there is hardly any other choice. Sometimes, no other source of capital is available, and it’s crucial for you to have funds for meeting medical expenses, obtaining health care, paying the rent or mortgage, or even for buying food. If a personal injury plaintiff is hard pressed to make ends meet, a “lawsuit loan” might be just the right course to pursue. Still, it’s prudent to involve your personal attorney in the entire process, which involves determining a lawsuit financing company offering the most optimal terms, and getting the contract with such a company reviewed prior to your signing it.
Legal Advance Funding provides lawsuit loans in nearly all 48 states. Our loans are risk-free, require no upfront cash and are 100% guaranteed: Lawsuit Loan Overview. Get a Lawsuit Loan Now.