Perhaps you’ve heard of lawsuit loans on television and wondered what they are, and how they work. Litigation financing (another term for lawsuit loans) is simply a process in which you obtain an advance against a pending settlement. This is an ideal solution for many injured victims who find they need money immediately to pay household bills, buy groceries and meet other financial obligations.
Many people accept the first offer the insurance company throws out simply because they feel they cannot afford to hire a lawyer or pursue justice through a lawsuit. Lawsuit loans make it possible, as you will have the money you need for attorney fees, and to pay your bills while your lawyer fights your legal battle for you. In most cases, those who qualify can have the money they need immediately, usually within 24 hours.
What does it take to qualify for lawsuit loans? You don’t have to have good credit, or even be employed at the time you apply. Litigation financing companies ask only for the information regarding the accident which caused your injuries, and the injuries themselves. You will never be required to provide background information or other personal data.
Once your application is completed by your attorney and submitted to the funding company, it will be reviewed at once. With lawsuit loans, most people who are approved can expect to get their money by the next morning, so there is no waiting for days or even weeks. Additionally, there are no out-of-pocket expenses or upfront fees to worry about, as you pay all associated costs (fees, interest) at the time you repay the loan, which is when you actually have your money in hand. If for any reason you fail to win your lawsuit, you owe absolutely nothing.
How can litigation financing companies go to such risk? Only those who have a strong case will be approved, as most funding companies will not lend against a claim that is weak or frivolous. If you have a solid case, chances are you will be approved. Learn more about legal financing here.
In most cases, lawsuit loans allow injured victims to obtain an advance of about 10% of their expected winnings. For instance, if your attorney has determined the value of your claim is $150,000 and filed suit for that amount, you may expect an advance of about $15,000. This money will help you live comfortably for the duration of your lawsuit, so that you do not face financial problems.
If you are involved in a personal injury lawsuit and having a tough time meeting your financial obligations, discuss lawsuit loans and their advantages with your lawyer. Litigation financing is a real solution that while not right for everyone, may be right for your situation.