Lawsuit loans or settlement loans are non-recourse loans based on the outcome of your pending lawsuit. Since it’s a non-recourse loan, you won’t have pay the loan back in the event you lose your lawsuit. However, should you win your case you’ll pay back the principal plus interest and any fees. Because the lawsuit and settlement loans are non-recourse, the lender will contact you and your lawyer and thoroughly research your lawsuit.
Lenders will only give you a loan if they feel you have a good chance of winning your lawsuit. For this reason, if you have a frivolous lawsuit you will have a hard time finding a lawsuit loan lender. Fortunately, lawsuit loans and settlement loans are available for many types of lawsuits.
Why Should You Get a Lawsuit Loan?
A lawsuit loan can be used to pay for your rent, food, car payments, medical bills or a mortgage while you await the outcome of your lawsuit. If you are unable to work or have lost your job, a lawsuit loan can give you the funds necessary while you get back on your feet.
You get cash before things are settled, which can be months or years. And the lawsuit lender gets a lien on your lawsuit proceeds. A lawsuit loan often helps you get a larger settlement because you’re not under pressure to get an immediate settlement. This is because you’ll have funds to carry you along while your case is settled.
Lawsuit loans versus traditional loans
The benefit of a lawsuit loan or settlement loan over a regular loan is that a traditional loan will have to be repaid regardless of whether your win or lose your case. On the other hand, a lawsuit loan is only paid back when you win. A lawsuit loan is basically a lien against the proceeds of your personal injury lawsuit.
In the event you recover less money than the lawsuit loan, you’re only obligated to pay more than your share of the recovery. In addition, lawsuit loans do not require credit checks or collateral. This is because you only pay the loan back if you win your case, so your credit is not important to the lender. Another advantage of a lawsuit loan is that you won’t have to make monthly payments. You only pay when your case is settled.
Certain facts that you should be aware of regarding personal injury lawsuits
A personal injury lawsuit is a potent weapon in the hands of victims of any kind of mental stress or injury. When any person gets injured at workplace, in a car accident or at some other place due to the fault of other person, then the injured person can file a personal injury case against the other party for seeking adequate compensation. But good compensation is only possible if your case has been built in a strong way and this is only possible with the help of competent personal injury lawyer.
They can help you infilling a convincing and strong lawsuit that can get you good compensation within a shortest period of time. Aside from this, personal injury lawsuits that are prepare with care set an example for other people and also prevent the reoccurrence of such acts. These personal injury lawsuits cover all the essential aspects of the injuries.
They include the physical suffering, mental anguish and any financial adversity suffered by the victim after this incident. Victims of personal injuries such as those suffered in car accidents can claim their medical expenses and other compensation through personal injury lawsuits. The damages secured in such lawsuits help the victim in getting back to the normal life. In order to make a watertight case, you must hire a competent personal injury attorney in your state.
Some of the facts about the personal injury lawsuits that you should be aware of:
1. Thousands of people in the US file personal injury cases covering various situations. Mostly the incidents include car accidents, slip or fall incidents in hotels and restaurants, injuries at workplaces, or use of certain products that have caused physical harm. Whether such incidents have left you with broken arm, burns or permanently disabled, you can get compensation for covering your medical bills and loss of any wages.
2. It has been observed that not all of these cases go to court. If you are interested in pursuing your case, you will have to hire a good lawyer to represent you and it is the lawyer’s responsibility to get you good compensation. With the help of proper testimonies and evidence, a competent lawyer can make it happen, but in most of the cases, attorney won’t insist on going to the court if the defendant is ready to pay the just amount.
3. Not all personal injury cases may end in huge compensation for the victim. However, in majority of cases, victim gets the just amount depending upon the circumstances at the time of accident, severity of your injuries, your current situation and the way their compensation case is prepared by the personal injury lawyer.
4. You should keep in mind that insurance company won’t give you money that easily. They will do everything possible to avoid paying you the just amount. Though insurance agents are friendly, but they are in the business to keep money rather than distributing it. If you feel that insurance company is reluctant to entertain your claim, you may request a personal injury lawyer to step in to handle this matter.
Usually people are not aware of the technicalities of personal injury law. However, personal injury lawyers have years of hands on experience in dealing with such cases and can help the victims to the best of their ability. They may prepare a strong case and help the hapless victims in claiming maximum compensation from all those who are guilty of inflicting such injuries on them.
Your personal injury case will definitely get strengthened if you hire a proficient personal injury lawyer for handling your case. Whether you are interested in a out of court settlement or wish to go for a trial, a strong and well prepared lawsuit can make things happen for you.
Can my lawyer give me a lawsuit loan?
Unfortunately, your lawyer cannot give you a lawsuit loan because it could create a conflict of interests, which may put your lawyer’s interests above yours. However, your lawyer can refer you to a lawsuit loan lender. Here are a couple lawsuit loan providers:
Why You Shouldn’t Get a Payday Loan Instead of a Settlement Loan
Getting approved for a payday loan can be relatively easy and quick, but this does not mean that such loans are necessarily the best way to manage your finances. While many people with meager incomes or existing credit issues often turn to payday loans as a last resort, long term use of such extensions of credit can prove to be extremely costly.
Defaulting on a payday loan, in fact, may set you further back financially than if you had not applied for and accepted such funding. The minimal requirements belie the damage that this type of lending can do to consumers who are likely in precarious financial situations in the first place.
Although often small in amount, payday loans usually come with a relatively hefty price, even if the amount is repaid on time. Paying a twenty dollar fee to receive two hundred dollars is a rather common scenario, thus repeatedly using this option to pay bills or otherwise stretch your income can actually be quite expensive. If poor money management and shopping impulsively are at the root of your financial difficulties, such a loan may not make much difference in terms of helping you get ahead or back on track.
Even if you manage to repay your advance, additional requests will likely follow if making poor financial decisions and an inability to delay gratification are part of your money handling routine. In the event that you experience difficulty repaying as little as two or three hundred dollars, the amount you would end up owing could be three times the original advance amount. Possibly having such an exorbitant sum to repay is what makes these loans so potentially damaging, even if the lender allows you to roll your loan for just a few terms.
Paying an annual percentage rate of over five hundred percent likely sounds illogical and something to be avoided at all costs, but this is precisely the type of rate that may potentially be applied if you routinely use payday loans. This is why in most cases, getting a settlement loan is preferable.