Lawsuit loans are most definitely not easy money. You qualify for these loans if you have been a victim and are now a plaintiff in a personal injury lawsuit that’s pending and likely to either settle or result in a jury award.
Easy? Not exactly; injury is never something to laugh at, and it can make life very difficult. You may have had to take off of work and due to a reduction in income, you don’t have money to pay your bills, including the medical expenses you may have incurred because of your injuries. You of course get compensation if you win your lawsuit that can help pay these bills, but what do you do in the meantime? That’s where lawsuit loans can help.
Timely help with settlement funding in the form of lawsuit loans
The court system is a great creation, in that it helps bring justice to those who might otherwise not get it. However, justice itself is necessarily a complicated process, and that can mean results come slower than we might want or need them to. That’s where this type of litigation funding can help.
Lawsuit loans are offered to plaintiffs by companies that specialize in this type of settlement financing. However, these companies don’t want to check your credit, and they don’t want any collateral from you. They do want to check and make sure that your case is legitimate, that you’ve hired your lawyer on contingency, and that your attorney is in agreement that a loan is the right solution for your situation.
How does it work? You simply contact one a litigation funding company, fill out the application to get a loan of this type (again, with your lawyer’s approval and full consent), and submit to the review process. Once your case has been thoroughly reviewed, and has been found to be legitimate and likely to result in settlement or award, the company will give you a portion of your expected settlement or award; it’s usually about one tenth of the expected full amount.
No need to pay the money back unless you win
What makes lawsuit loans so helpful is that you will not have yet another monthly payment or obligation to add to your already mounting financial burden. Unlike most loans, you only have to pay your loan back if you win your case. If you win, the company reclaims the money it lent you, plus fees and interest, but if you lose your case, you owe the company nothing. In that sense, you could say that these loans are “free” money in that they free you of worry or obligation to repay unless you win your case. This is simply not true of other types of loans. Is litigation financing right for you? Discuss the possibility with your attorney; this is one solution that will allow you to live comfortably and with less stress while waiting for your settlement.