Can Settlement Loans Help Avoid Bankruptcy?

Considering that they can cost over $100,000 by the time they’re over, lawsuits can get very expensive! The fees for a lawsuit start adding up quickly, and if you’re not financially prepared to cover the costs, you can easily deplete your bank account. This is especially true when you start adding up other costs related to a lawsuit, such as time medical bills and time off of work. But with a financial lifesaver called settlement loans, you can continue to cover the cost of living while pursuing a lawsuit without going bankrupt or being forced to end the trial early due to lack of funding.

What Are Settlement Loans?

Settlement loans, or legal financing settlement loans, are similar to other loans one may encounter, such as car loans, mortgages, and student loans. What makes settlement loans different from other loans, however, is that you can use them for more than one purpose. In contrast to other loans, there are no monthly payments required. Settlement loans are designed to be emergency funds that cover the cost of living, such as rent payments and medical bills, which might otherwise become unaffordable if you’re also shelling out money for a lawsuit.

How Much Money Do You Get With Settlement Loans?

The amount of money you get through a settlement loan is determined on a case-by-case basis. Generally, you’ll get a loan of up to 20% of the expected claim value. There’s generally a cap of $1 million. When you first apply for funding assistance, lawsuit settlement loan companies will contact your lawyer to get specific information on your case, such as the type of personal injury lawsuit you’re involved in and the projected claim total. If you don’t have a lawyer yet, or if you want to see if your case classifies as a personal injury case, you can look for information on Nolo’s website:

Do You Need A Good Credit Score To Apply?

Fortunately, unlike other types of loans, legal financing lawsuit loans don’t require a good credit score (which is generally a FICO score of 700 or higher) to apply. This is because settlement loans are non-recourse loans, which means that if the case doesn’t settle in your favor, you are under no obligation to pay the loans back. The only time that lawsuit settlement loan companies see your credit score is if you’re involved in a bankruptcy case. Another thing that distinguishes a lawsuit loan from conventional loans is that you don’t have to pass a background check to qualify.

If a lawsuit is threatening to wipe out your bank account, all is not lost! Settlement loans can save the day through a no-obligation repayment that allows you to live a normal life while the case continues. Once your application is approved, you can get funds in as little as 1-7 days. Furthermore, you might also be able to get additional funding if needed during the case, provided you haven’t yet reached the maximum advance limit.

By |2018-08-08T21:10:46+00:00August 8th, 2018|Blog|