Being a personal injury victim may be one of the most difficult things you will ever go through in your life. Not only have you been the victim of someone else’s carelessness or negligence, but you may now be facing times when finances will be especially tight. You may have lost your job as a result of the injury; alternatively, even if you have been able to keep your job, you may be out of work for a while, until you recover.
Is there a way for you to manage this difficult time? Actually there is. It’s called a lawsuit loan.
Lawsuit loans are in effect loans for money against your expected settlement or jury award. What happens is that a company that specializes in lawsuit loans will take a look at your case, and determine that it is valid. The company will also make sure it’s likely that you will win your case. Then, the litigation funding company agrees to lend you a portion of your expected award or settlement, usually about one tenth of its total value; you can use this money in any way you wish to pay for expenses and take care of needs until your settlement or award comes through.
When you win your case, you pay the settlement funding company back the money it lent you plus fees and expenses. If you lose, though, you owe nothing. You simply walk away free and clear, and the money is yours to keep. Lawsuit loans are in effect loans that have no collateral required, no credit check done — nothing you might expect as with the average loan.
Are there any drawbacks?
There really aren’t any drawbacks with lawsuit loans (also called litigation financing or settlement loans), but you do have to have a couple of other qualifications in addition to having a valid personal injury lawsuit pending in court or working its way to settlement. The first one is that your lawyer has to be hired on contingency, meaning that he or she, too, will not get paid unless you win. Beyond that, your lawyer has to agree to your desire to take out a loan, in that he or she has to sign on with you, so that the company knows he or she is in full agreement. If you do not get your lawyer’s permission in full, you won’t be eligible for lawsuit loans. If you do, though, remember that this is a way to provide some much needed funds for you take care of your needs until your case is decided.