When you’ve been injured due to the negligence of someone else, collecting on your injury case can be a long, drawn-out process. Lawsuit loans come in very handy when your bills begin to pile up. Whether your lawsuit has already settlement but you’re waiting on payment, or a lawsuit is pending, it’s a good idea to discuss litigation funding with your attorney, who must agree and sign off with you should you decide this is the route to take.
Whether you were involved in slip and fall or car accident, or even injured due to a faulty product although you used it as intended, a personal injury lawsuit takes time. In the meantime, you may not be able to work because of your injuries. However, that doesn’t stop the bills from coming in – and now, you’re facing substantial medical expenses. Lawsuit loans help ease the financial burden, so that you can live as you normally would while waiting for your lawsuit to settle.
You must have a strong case in order to qualify, as lawsuits that are considered frivolous will not be accepted by the litigation funding company. If you do have a strong case, it’s highly likely that you will be approved for a lawsuit loan. How do you apply? Your attorney will submit the required information, which is related only to the circumstances of your accident and your lawsuit. Unlike other conventional loans, you will not be required to give any details in regard to credit rating or history, employment, or other background information.
With lawsuit loans, you can have access to a portion (usually 10%) of your expected settlement within 24 hours if you qualify. This money can be used any way you see fit, such as for paying monthly bills, buying groceries, even attorney fees. With litigation funding, you are at absolutely no risk; if for any reason you do not win your lawsuit and are not awarded a settlement, you owe nothing to the funding company. You only repay the loan if you do win, and only when you receive your money. Essentially, this means you never have out-of-pocket expenses to further increase your debt.
Simply put, with lawsuit loans you are given a percentage of your expected settlement before you ever reach settlement, so that you can live comfortably. When your case is settled, you pay the litigation funding company back. That’s it in a nutshell! Even with the small fees and interest you will repay the funding company, you can expect to enjoy a much larger settlement than you would if you were to settle for what the insurance company offered instead of filing a lawsuit.
Are lawsuit loans for you? Only you and your attorney can answer that question. If your lawyer is representing you on a contingency basis (required in order to apply for a lawsuit loan) and you have a pending claim against a defendant, chances are you qualify.