What Should You Consider Before Getting A Lawsuit Loan?

By Frank Coutinho | Aug 21, 2018
Photo by: Pexels

You may have been a resourceful and well-liked employee who was well on track to progress in your career and getting promoted. However, one unfortunate workplace accident occurred that has caused you to serious personal injury that may cause you to be bed-ridden for the rest of your life. Due to your employer’s negligence, you believe that you have a good chance of winning your injury case. Unfortunately, you are running low on funds since you have lost your job, which was your primary source of income. In some situations when you are without funds during a case, you can receive some money from a lawsuit lending company. You may be wondering to yourself, what is a lawsuit loan?  Well, it essential to keep in mind that your defendant is usually a big company that has all the resources to pay for the trial. While your case is going on, you can get your lawsuit loan to pay for your medical bills in the meantime. In this article, we will provide you with some ideas on how to get a lawsuit loan.

 

The Duration of the Lawsuit

Personal injury cases are notorious for taking a long time in starting, and even more time in finally concluding. In many situations, these cases can take several years. You should ask your experienced lawyer for an estimate about the amount of time it will require for you to receive a final verdict. In the meantime, a personal injury lawsuit loan can be an excellent strategy for you to receive pre settlement funding while you are waiting for your case to come to a final verdict.

 

Receive the Advice of a Legal Expert

When you think about a loan, talk to a lawyer. This is the source of professional advice. You can pay for these services. Remember that lawyers have experience in assisting people to get personal injury lawsuit loan. Once you get a right lender, get some reviews about the company and see how reliable the company is. The interest rates are supposed to be friendly to you. Personal injury lawsuit loan is ideal if the lender will be able to stop interest accumulation.

 

Consider Paying the Money Back

Almost all lawsuit financing companies give non-recourse funding to plaintiffs. This requires the plaintiff to pay back the advances and fees/interest only if they receive a favorable decision from their case. If their argument is lost, then you can keep the cash advance with no obligation. If you do win your case, then part of the settlement amount will go towards repaying the cash advance plus any interest and fees. The amount that is owed to a litigation finance company will increase the longer your case takes in settling in several situations.

 

What If You’re Denied A Loan?

Being denied for funding does not mean that your case is not a good case or that you will win less money than you think. There are many different reasons why funding is denied. One reason is that the estimated settlement date is too soon. Litigation finance companies make money by accruing interest on their investment in your case. If your argument is supposed to settle in 2 months, then a litigation finance company will not make any money because the settlement date is too soon and therefore they may decline the funding request. Other reasons for denying lawsuit loan applications include: an attorney will not provide documentation, the attorney will not sign the contract, the plaintiff demands too much money, etc.

 

In conclusion, as a plaintiff, you should understand lawsuit loans and the process of securing litigation funding before you apply. If your expectations are set correctly, and you proceed with a lawsuit loan, then you will find that it is a saving grace in the turbulent world of litigation. If you apply for a lawsuit loan without an understanding of litigation finance, then you may be disappointed.

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