A Pre-settlement Loan Provider can refer to a company that provides lawsuit loans or pre- settlement loans to plaintiffs. A Lawsuit Loan refers to money that you receive while you are battling with your lawsuit and waiting for your settlement.
Why Are Lawsuit Loans Beneficial Nowadays?
Since it may take months or even years before your lawsuit is over, you have to wait a long time before you can hope to get some money in your hand. Till then, there are plenty of expenses that you would have to manage, including your attorney’s fees.
In order to facilitate plaintiffs who are having a hard time making ends meet while they wait for their settlement money, pre-settlement loan providers help by providing lawsuit loans so plaintiffs can manage their expenses better. If you need lawsuit settlement funding now, check out Legal Bay. They can get your litigation funded while you wait for your settlement to be determined and paid out.
However, before you choose a provider for yourself, you have to do your research thoroughly and ask a few sets of questions to put yourself at ease.
The 5 Questions You Should Ask A Pre-Settlement Loan Provider Beforehand!
If you are confused about the particular questions you should ask a pre-settlement loan provider before choosing them, look at the 5 questions we have jotted down for you.
1. Are You The Direct Funder Or A Broker?
You can benefit from dealing with both the direct funder and the broker. However, while a broker may make the research process easier for you, they will charge their commission separately adding up to 20% in the fees.
2. What Is Your Procedure And Process For Approving Settlements?
It is necessary to confirm the process so you can get your documentation ready. Be wary of companies that do not ask many questions, as they might be planning to charge you lots of interest on your loan after the lawsuit settlement or may pressurize you in signing some ‘off- the-table’ contract.
3. Is It Necessary To Include My Attorney In The Proceedings?
Your attorney knows more about your case than you do, however, since you are the one receiving the pre-settlement funding; it is on your discretion whether you choose to include your attorney in the proceedings.
4. Will You Charge Fees And Interest Before And After The Settlement?
Most companies do not ask for upfront fees or charge high interests. They do not charge compound interest or simple interest from your settlement money either. Be sure to confirm this from the company beforehand, otherwise, you could end up losing lots of money.
5. Do I Need To Pay My Settlement Back If I Lose The Case?
Most plaintiffs tend to worry that they will be under debt if they lose their settlement. Generally, companies such as DeltaLawsuitLoans.com - providing pre-settlement loans do not ask for the loan repayment if the plaintiff has lost the lawsuit and thus the settlement.
It is best to confirm this as well from the company to avoid a troublesome situation in case you end up losing your case.
