You can get much-needed cash for living expenses and debts with the help of a lawsuit loan in the Bronx, New York. Your attorney can negotiate to get you the maximum available settlement as per law, and the amount of the loan is based on the expected settlement amount.
If you are approved, you do not need to repay the cash advance until you win the case. In other words, if you lose the case, you don’t need to make a repayment. But it’s crucial to be aware of the costs associated with a lawsuit loan if you win a settlement.
How are the fees for Bronx lawsuit loans calculated?
Individual terms and conditions
Only about 20% of the states in the US have passed legislation that imposes disclosure requirements and interest rate caps from companies providing services for lawsuit loans in their jurisdictions. Therefore, companies in most jurisdictions can create their own terms and conditions, which also includes fees and costs on lawsuit loans.
Explanation of fees
Companies that provide litigation loans usually charge you an upfront fee. These include things such as application fees or origination fees similar to fees associated with a conventional loan from a lending institution. Make sure to ask the lender to explain all the fees and amounts when you make your application. Check if they will charge you interest on these fees. Review all the information sourced from your attorney.
Things to know
To determine the costs associated with a lawsuit loan, make sure to note the following aspects:
- Advance amount required
- Is it a simple or compound interest?
- Rate of interest
- Time needed to settle the case
- All fees that are included: processing fees, application fees, review and underwriting fees, delivery fees, and origination fees
An example to understand the fees
We attempt to do the math here, briefly. The cost will increase the greater the amount received in a lawsuit loan, and the longer the time that is taken to repay. This is because of the rate of interest that is charged by the lending company.
You can calculate the simple interest estimate by multiplying the cash advance amount by the annual interest rate. Then, multiply this number by the time duration from the advance taken to repayment. For instance, consider that the total amount of money needed for medical bills, rent, groceries, and living expenses is $30,000. The legal funding organization will offer it at a simple interest rate of 4%.
If it takes 18 months to finish the case settlement, you owe the legal funding organization $51,600 from all the settlement proceeds. The calculation is made as follows: $31,000 x 18 x 0.04 = $21,600. The deducted amount from the settlement would be a $30,000 advance amount plus a $21,600 interest amount, which totals $51,600.
Types of fees from lawsuit funding companies
You may find that your lawsuit loan includes a partial or full list of the below-mentioned fees:
- Broker fee or processing fee
- Underwriting fee
- Origination fee
- Fee for document preparation
- Case management fees
- Monthly payment deferring fees
- Hidden fees
- Delivery fees
- Upfront application fee
Many of these fees are similar to convenience fees, which represent illegal surcharges from merchants to offset debit card transaction processing costs.
How to ask the legal funding company regarding fees?
Most lawsuit loan organizations do not show transparency in their fee structure. Legal expenses and extra costs often manifest as hidden expenses, eventually. To fully understand the fee structure of a lawsuit funding organization, ask them the following questions:
- What is the full list of fees charged in lawsuit loans?
- What is the cost of each fee?
- What is the frequency of applying each fee?
- How will the lawsuit funding costs and fees be applied?
- Will the fees be percentage-based or have a flat fee structure?
- Will further interest rates be applied to the fee charges?
Asking these questions can save you from spending more money than is necessary on lawsuit settlement charges.
Can lawyers lend money to their clients in the Bronx, NY?
When a lawyer is representing a client, they cannot grant any financial aid to their plaintiff. However, a lawyer can certainly help by securing a larger settlement or verdict award on behalf of their client.
Can lawyers assist clients in receiving the Bronx, NY lawsuit loans?
According to the Formal Opinion 2011-2:
“As per Third Party Litigation Financing, there are several ethical issues that can arise for the attorney if the client seeks lawsuit loans from a third-party provider.” In such cases, lawsuit loans can be a valuable source for plaintiffs, and attorneys need to proceed in such matters with caution.
Highest “Pain and Suffering” award in the history of New York
It was during a personal injury lawsuit in November of 2021 that a new precedent was established in the pain and suffering award category in New York. The NY Appellate Division awarded $29 million to a former student at a state high school. The student was disfigured due to a failed chemistry experiment. The plaintiff was 16 years old when the accident occurred and was disfigured so badly that he suffered 3rd-degree burns on both the face and the neck.
The plaintiff spent 2 months inside the burn unit at Cornell, and 3 months in The Children’s Hospital. He underwent multiple skin staples and grafts just to keep the new flesh intact. He had to stay immobilized in a difficult crucifix position for several days. The award is the largest to be ever affirmed for pain and suffering in New York.
Lawsuits filed for the Bronx apartment fire
On January 9th, 2022, a fire engulfed an apartment complex in the Bronx, NY. The apartment complex called Twin Parks Northwest cost 19 people their lives, 9 of which were children. For the remaining 63 injured victims who survived, as well as the loved ones of those who lost their lives, this was the beginning of a journey to recover from the financial, physical, and emotional losses.
If another party is found responsible for this fire, they may be liable to pay the victim both economic damages (such as income loss and medical bills) as well as non-economic damages (such as loss of consortium and pain and suffering). Compensation in this type of case varies depending on the specific circumstances, but it can add up to hundreds of thousands and in some cases millions of dollars in damages that plaintiffs can recover.
Hassle-free experience in lawsuit loans from Direct Legal Funding
Getting a lawsuit loan from Direct Legal Funding is a seamless and smooth process. We require zero repayments until the case is won, and you can be well on your way to receiving funds in just 24 hours. Our team is knowledgeable and friendly and will guide you through all the steps. Contact us today via our online application form or call us at 866-941-5588 to know more.