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.Continue Reading