After filing a personal injury lawsuit, you may have no sources of income, and your monthly expenses may be hurting your savings and your finances. You will not only have to pay for your legal expenses, you will also have to take care of your own medical bills and monthly household expenses (such as rent, food, transportation, etc.) using your own savings. Depending on how much savings you may have on hand, you will not have enough cash on hand and you may end up in a dire financial situation. Fortunately, things do not have to remain like this because you do have the option of resorting to a lawsuit loan.
This is a type of loan that is different from the traditional loans you can receive from a bank. With lawsuit loans, you are essentially borrowing an amount of money against the settlement or judgment that you are expecting from the lawsuit you have filed. Many victims of personal injury and related cases usually apply for lawsuit loans because they do not have enough money to pay for their large medical bills as a result of their injury, especially if they have no source of income. They may also use the money to help them in covering their monthly living expenses, or their legal expenses.
It is important to keep in mind that lending companies that specialize in settlement advance loans are taking a substantial risk every time they grant this type of loan to a plaintiff. As such, these companies will usually only lend money if they’re very confident that the plaintiff has a good case and a good chance of winning. They will contact your lawyer and ask them for as much information as possible about your lawsuit, in addition to how long they expect the case to take. You will also need to have a lien to your case, signed by you and your lawyer stating that you will pay them back once your case is settled or you have won.
The cost of a lawsuit loan will depend on a wide variety of factors, but in general terms, it can be more expensive than other types of loans. This is because this type of loan carries a high amount of risk for the lender because a lawsuit can go either way and the plaintiff does not have any obligation to the lender in case the settlement amount is lower than anticipated or if there is no settlement amount at all. In addition, it often takes a long time for a personal injury case to settle or to go to trial. This explains why interest rates can be higher for these types of loans. Therefore, the longer your case drags on, the more money you will be paying.
In conclusion, lawsuit loans are a great alternative for plaintiffs who are running low on money during a case. However, since these types of loans are risky for lawsuit lenders, they are selective about who they will borrow too. It is best to apply for these types of loans after you have completed your own research beforehand, and believe that you have a very good chance of winning your case.
