Lawsuits are costly procedures, to say the least. You must pay your lawyer’s legal fees while the case is being fought in court. Then there is the time factor: some lawsuits take months, even years to reach a verdict. And if you’re in an accident that renders you unable to work, you may lack the income for a lawsuit. Unfortunately, that means you’ll also need to find a way to make ends meet as you pay for rent, mortgages and basic necessities.
What Is a Lawsuit Loan?
Lawsuit loans help ease the financial burden by providing money until you can pay it back from the settlement.
A settlement loan is advanced to someone who is awaiting the settlement of a lawsuit or claim. For a vehicle accident injury, a lawsuit loan funding service can pay for medical bills, rent, mortgages, vehicle loans and other basic necessities.
Settlement loans also make sure that you are not forced to give in to a low settlement amount because you’re worried about making ends meet for your family. Lawsuit loans don’t have to be paid back until the verdict is reached. Once the settlement amount is received by your lawyer, the loan can be paid off.
How to Get a Lawsuit Loan
The process of applying and receiving a lawsuit loan or settlement loan usually happens very quickly, as time is of great concern for all people involved. You simply apply for an advance settlement loan with a service provider. They will then run an initial assessment of the case and the claim. They also review all details of the case. Once all the information is gathered a questionnaire is sent to your lawyer. Soon after, your lawyer will return the questionnaire, and a representative will speak to you about how much financial assistance can be provided.
As settlement loans are most needed by those who are facing imminent financial problems, no payments or paybacks are demanded before a verdict is reached. In the event that the case is dismissed in court, you will not need to make any payments at all. As the settlement itself is the collateral of the loan, lawsuit loan providers do not require credit checks and other time consuming verifications to provide financial assistance.
Final Thoughts
The loaned amount differs from person to person. For example, loan totals depend upon the settlement amount, personal expenses, and the time needed to settle the case. They also depend on the probability of winning the full claim amount, and some unique circumstances. The money can be advanced as a lump sum payout, a monthly living allowance, or a line of credit. Make sure that you discuss the details of the payment with your loan adviser. It’s important that you understand exactly how much you will need to pay back, before you make a deal.
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Since time is a major concern for both parties, the application and approval process for a litigation loan or settlement loan typically happens extremely quickly. You just apply for an advance settlement loan with a service provider.