Lawsuit Loans – How To Get A Lawsuit Cash Advance
LAWSUIT LOANS – HOW TO GET A LAWSUIT CASH ADVANCE
What Is a Lawsuit Loan?
Lawsuit loans can be used to help pay bills and to meet your cash needs while waiting on settlements of a lawsuit or insurance claim. Almost every type of lawsuit may be eligible for a lawsuit loan, also known as pre-settlement funding, depending on the loan company.
Lawsuit loans are done in two ways – recourse and non-recourse. In a non-recourse loan, the loan company is basically betting you will win your suit, and they give you money based on that bet. If you lose, you do not owe them any money. But with a recourse lawsuit loan, you have to pay the loan company back the amount they loaned you plus interest, whether or not you win.
Why Take a Lawsuit Loan?
Lawsuits and insurance claims may take a long time to settle, but you still need to pay rent, buy food and take care of all of your expenses every month. Insurance companies and other defendants have a lot more money than you do and they will try to wait you out or get you to settle for less because you are desperate for money.
But taking out a lawsuit loan can help you through this tough time and wait for the settlement you deserve. No one but you and your attorney will know you’ve taken the lawsuit loan. Not the defendant you are suing or their attorneys. Also, you may be able to borrow against your claim more than once if the settlement continues to drag on.
How Does a Lawsuit Loan Work?
First, you find a lawsuit company that works with your type of lawsuit. These can be easily located on the internet. Next, fill out the application – some charge a fee to apply while others do not.
Good credit is not required and a credit check will not be necessary unless a bankruptcy claim is involved. You do not have to ask your attorney’s permission or notify him before your apply for a lawsuit loan. A lawsuit loan will not change your agreement with your attorney or the amount they will be paid.
Is a Lawsuit Loan Legal?
Yes, lawsuit loans are completely legal. Once your case or claim is settled, attorney fees and any medical liens must be paid first, but the rest of the money is yours to dispose of as you wish. The lender you are working with may not operate in your state, but they will let you know.
How Large is a Lawsuit Loan?
A lawsuit loan may be as small as $250 or as large as $1,000,000 and will vary by the type of case and the merits of your claim. Loans may be lump sum or paid out in monthly installments to help with recurring expenses.
How Fast Can I Get a Lawsuit Loan?
Smaller loans may take 24 hours or less. The larger the amount, the longer the loan will take to process, anywhere from a couple of days to a week. For loans of large amounts, the loan company will have their own attorneys evaluate your case.
Why a Lawsuit Loan?
Banks and credit unions do not loan money based on insurance claims or lawsuit settlements, even if your case looks great. Traditional lenders like this consider loans of this type to be very risky. The best kind of loan is interest-free, but usually only family offers those kinds of terms. A credit card advance may get you through lean times, but the interest rates are extremely high.
Lawsuit loans, whether recourse or non-recourse, pay interest back to the lender and rates will vary by lender. If your credit cards are at their limit and your family has no money to lend, a lawsuit loan may be a good way to meet your cash needs until your claim or lawsuit is settled.
Your lawyer, even if they want to, cannot loan you money to help you wait for your settlement. The American Bar Association forbids these activities for the protection of the client. You would not want your attorney to pressure you to settle because they want you to repay money they loaned you.
What is a Non-Recourse Lawsuit Loan?
By giving you a non-recourse lawsuit loan, the loan company buys an interest in your insurance or legal claim. If you don’t win the claim or lawsuit, or are not awarded funds, you will not have to repay the lawsuit loan company anything.
The lawsuit loan company is gambling that you will win your claim or lawsuit. They give you an amount of money based on the strength of your case. With a non-recourse loan, you can usually borrow 10-15% of the amount of your anticipated settlement.
What is a Recourse Lawsuit Loan?
If you get a recourse lawsuit loan, the loan company is simply making you a loan with the strength of your lawsuit as collateral. You will be required to pay back the principal plus interest in a certain amount of time, like with a standard loan.
Can I Get a Lawsuit Loan Based on My Lawsuit?
Lawsuit loans may be made on claims such as: asbestos, auto accidents, aviation accidents, breach of contract, civil rights, class action lawsuits, commercial litigation, construction negligence, copyright or other intellectual property litigation, divorce,
employment discrimination, environmental litigation, FELA (railroad), pharmaceutical claims (such as fen-phen, zyprexa, vioxx, etc), fraud, general negligence, inheritance, Jones Act (maritime), legal malpractice, litigation funding, mass tort, medical malpractice, mesothelioma, motor vehicle and passenger injury, nursing home malpractice, pedestrian injury, personal injury, premises negligence, primary pulmonary hypertension (PPH) suits, product liability, securities fraud, sexual harassment, slip-and-fall, trucking accidents, whistle blower (qui tam), workers compensation, wrongful death, wrongful termination and many others.