What Is Pre-Settlement Lawsuit Loans And Why You Need It?

pre-settlement lawsuit loans

Pre-Settlement Lawsuit Loan 

Lawsuit funding loans are not like general loans. They are a cash advance on an expected settlement or verdict in a pending legal case. 

If you are going to file a lawsuit, you can contact a lawsuit funding company and that company will give you a certain amount based on the evaluation of your legal claims. 

A pre-settlement loan is safe because you don’t have to anything back in case you lose the case. A pre-settlement lawsuit loan is a relatively new type of financing, it provides advances to plaintiffs in a wide variety of lawsuits including wrongful death, personal injury, workplace injury, product liability, car accident, commercial, and employment lawsuits. 

A pre-settlement loan is also called a pre-settlement advance or lawsuit funding, this is not like a traditional loan or advance. This type of loan is provided for the help of the people. If a person is going to file a lawsuit and he runs short of money, he can apply for a pre-settlement lawsuit loan and the lawsuit funding company will give him an amount based on the evaluation of the legal claim. 

Why You Need A Pre-Settlement Lawsuit Loan? 

When you are awaiting the outcome of a lawsuit, a pre-settlement loan can help you cover your basic living expenses. A lawsuit loan can also help you negotiate a stronger position with an insurance company or attorneys for the defendant, who often has a weakness for plaintiffs in financial difficulty and uses other pressure methods to reduce the amount of money you get for your lawsuits. 

Previously, there was no way for immediate financial assistance for the personal injury victims and plaintiffs. No bank or credit unions provide loans for personal injury. Now, plaintiffs have the option of pre-settlement loans which helps the plaintiffs in meeting their essential expenses when they are waiting for the result of their claim. 

If you are going to file a lawsuit or have already filed a lawsuit, you might have to wait for a long time because court proceedings have a long duration. In a personal injury settlement case, medical expenses lost wages, and daily-living expenses can create an excessive financial burden for plaintiffs. Normally, plaintiffs who have filed a lawsuit loan, are unable to do their work, and they also have to pay large medical bills. Therefore, asking for a pre-settlement loan is the best option. 

While going for a pre-settlement loan, you must consider some important things. First of all, you should go to an attorney and ask about how much time will require the settlement of your legal claim. Sometimes it may take a long time to resolve the case and you will need to indicate the cost of interest on your pre-settlement advances while your case is pending. There are other options that you might consider like a personal loan, short-term disability assistance, borrowing from a relative or a friend, and a low-interest credit card. If these options do not work for you, a pre-settlement loan is the best option for you. 

The Final Word On Pre-Settlement Lawsuit Loans

A pre-settlement lawsuit loan is not like a general loan. It is a cash advance on an expected settlement or verdict in a pending legal case. A pre-settlement loan might be expensive because pre-settlement companies charge interest on the lawsuit advance. Some lawsuit funding companies charge 50% interest rates and a reputable company that finances lawsuits can charge interest rates between 1-3%. While choosing a pre-settlement funding company, try to find a company that will describe its process in advance and determines the interest rates in each case. 

The lawsuit funding companies that use conservative underwriting process and evaluate the settlement cases based on merit, only these companies will offer low-interest rates and favourable conditions. Be sure to talk with your lawyer before signing a financing agreement before calculating and make sure that all your questions are answered before accepting an advance payment.

Bootstrap Business Blog Newest Posts From Mike Schiemer, Partners, & Blog Outreach Services