Lawsuits can help victims receive compensation for pain and suffering caused by negligent acts. But cases can take years, making it difficult for plaintiffs to survive financially until they receive their settlement. That’s where lawsuit loans can help.
Loan demand is a unique brand of financing that can be a lifesaver for plaintiffs who are struggling to keep their finances in line. Lawsuit loans are a cash advance that plaintiffs apply for if their funds are running low in a settlement process or lawsuit. Most lawsuit loans are used to pay the medical expenses of those without health insurance. But the funds can be spent on anything, including mortgage payments, car notes and daily expenses.
Lawsuit Loans Aren’t Actually Loans
Interestingly, lawsuit loans are not actually loans.
That’s because they are technically a form of payment “without recourse”. You only pay the funds back if you win your case. The loan repayment litigation is not expected until after your case has been resolved. In fact, many lawyers add the cost of this funding in basic reimbursable expenses in demand to determine damages.
If you do win your case, you will not have to repay the advanced funds. Neither your attorney or anyone else. So essentially, companies that provide lawsuit loans assume all risk and not you.
Qualifying For Lawsuit Loans
While personal injury cases are the most common litigation used with lawsuit loans, many types of cases qualify for this type of financing. A few are:
- medical and legal malpractice
- wrongful death
- wrongful termination
- breach of contract
- sexual harassment
- employment discrimination
- product liability
In terms of personal qualifications for lawsuit loans, there are none.
And why’s this?
Because no credit is actually carried out, the standard items for loan approval, such as a credit check and employment verification aren’t required. Instead, companies that offer loans of litigation base their selection on the merits of the cases they choose. They aim to support strong cases most likely to win therefore lowering their risk of losing money.
For these companies funding the loans, lawsuit loans are purely an investment tool. If you lose your case, they will walk away with nothing. But if they win, they will have the legal right to share liquidation. This right is based on the lien that gets placed where necessary to ensure the lawsuit loan. The lien gives the company the financing of a law to return when his case is resolved.
Given the high risk involved, companies that finance loans charge a significantly high fee for their services. Some companies may charge up to 15% of the amount of the settlement. This may seem like a high percentage. But if your case wins, it’s likely to provide you with more money than you get with a settlement advance, even after paying the lawsuit loan.
Monetary Limits on Lawsuit Loans
Exactly how much money can one receive from a lawsuit loan? The actual amount received depends on the underwriting requirements of the finance company. However, most companies financing lawsuit loans will pay up to $ 500,000.
Why is There Such a Demand for Lawsuit Loans?
Loan demand is a viable option for plaintiffs who are struggling to make ends meet until your case settles. Many plaintiffs lack external funding and are draining their savings in lawsuit battles. There’s a possibility they could get money from a home equity loan or line, but this could jeopardize their home. Often times plaintiffs are not eligible for traditional bank financing because they’ve lost their jobs due to injury or other circumstances.
However…lawsuit loans can make a huge difference in your life.
People who engage in personal injury and other cases are often at a disadvantage in the legal system. Companies with deep pockets can afford to extend cases in an effort to “wait for” the plaintiffs who are in dire need of funds.
As a result, litigants often face the pressure of financial difficulties and choose to settle in advance for much less than they deserve. Lawsuit loans help fill this gap. They provide the financial means for plaintiffs to survive as they wait for their settlement.
Direct Legal Funding Lawsuit Loans
Direct Legal Funding is simple and easy to work.
Here’s how it works:
We consult with companies that offer lawsuit loans in relation to your case and requirements. Then we will get in touch with your lawyer, evaluate the details of your case and let you know if you qualify for financing. And once all the paperwork is completed and a lien is placed, funds will be sent to you directly by check. You can get approved in as little as 24 hours!
All lawsuit loan companies, including Direct Legal Funding, maintain a hands-off policy regarding the legal strategy of your case. Lawyers will keep full control over your case and all relevant legal issues.
Loan demand can be a lifeline for litigants struggling to keep their finances afloat while their case settles.
Contact, Direct Legal Funding if you’re in need of any current settlement or lawsuit loans.