Sometimes, car accidents are inevitable. On bad days, an accident that is not your fault can keep you in the infirmary for a while. If the car accident is serious, it keeps you out of your jobs and businesses for a while.
Aside from that, you get to spend more than you plan to within the healing period after the accident. Paying the medical and legal bills that come with these accidents can break the bank.
If you are in a situation like this, lawsuit loans might be what you need. Lawsuit loans provide the cash you need to thrive better during the period you heal from the accident.
You can get the loan as soon as you apply for the additional fund. You can also get the lawsuit loan before the lawsuit settlement as you expect one. This is after you prove that you are eligible for the settlement.
The advantages of lawsuit loans are numerous. The primary benefit is that they are free from risks. The risk-free nature of these loans means that you don’t have to pay back if you never recover from the accident.
On the other hand, the primary disadvantage is the interest rates. Interest rates are a bit higher than the average loans because the consumer doesn’t pay back the loans for two main reasons. The first is if they don’t recover from the accident. The second is if they do not get the settlement they expect if the judge does not judge in favor of them in the court.
Lawsuit loans help in car accidents, but that’s not all there is to these loans. This article gives you an insight into what lawsuit loans are all about.
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What Are Lawsuit Loans?
A lawsuit loan is a cash advance you get before a future settlement. The lawsuit loan is given to one who is in a lawsuit with the likelihood of getting money from it, but they need immediate cash as no court decision has been rendered in the lawsuit.
Law facilities give lawsuit loans to people who expect settlements when they win a lawsuit.
People call lawsuit loans different names depending on why you file for them. Aside from the most generic name, lawsuit loans, they are also called lawsuit cash advance or lawsuit funding. Some persons also call them Litigation finance or settlement or pre-settlement funding.
How Do Lawsuit Loans Work?
Say, for example, you get in a car accident. If you apply, you get car accident loans the same day. However, you only get these loans as quickly if you apply with a company that gives loans on this basis. The company that gives out the lawsuit loans judges the accident case first to help you determine what you can win as a settlement from the accident case.
The lending company, from their judgments, offers you the money you need to take care of the expenses. In exchange, you pay back the loan with interest, which they call the ‘funding fee.’ Most persons with personal injury cases get complete settlements before trial if they satisfy all conditions.
So, upon getting the settlement from the lawsuit you file, you pay the lending company out of the proceeds from the lawsuit as you win.
Lawsuit Loans Help You Fight Your Legal Battles
Lawsuit loans are not only applicable to accident victims. There are other instances where you need the loans.
If you plan to file a lawsuit and have a lawyer to represent you, you can apply for the lawsuit funding. If you have filed the lawsuit and you are waiting for the settlement or trial for the case, you can also apply for a lawsuit loan.
However, you may not get the lawsuit cash advance sometimes. The lenders may not be willing to give the funds because not every case qualifies. They have to make evaluations of your case in hand. The lenders evaluate the legal merits of the case, the role you play, and how you played it. However, they base the final judgment on your chances of winning the case.
The people eligible for lawsuit funds are, in all cases, victims of personal injury or wrongful death.
If you want to file a lawsuit, you need to know what your case falls under to qualify for a lawsuit advance. The list below will give you an idea of the legal cases you qualify for. Nevertheless, this list depends on the details of your lawsuit.
Your situation may be classified into one of the following categories:
- Personal injury cases
- Motorcycle accidents
- Slip and fall lawsuits
- Accidents in a boat
- Cases of police brutality
- Railroad and aviation accidents
- Pedestrian injury
- Auto accidents
- Dog bites
- Wrongful deaths or death of an innocent individual
- Labor and employment disputes that inflict injury on a party
- Cases of medical malpractice
- Product liability
- Pharmaceuticals and drug-related lawsuits
- Nursing, rehab, or elder care abuse lawsuit
- Premise liability
The lawsuit fund provides you with financial assistance as you await the result of your case.
The accused’s attorneys tend to drag the cases for a long time in hopes that you settle for what they offer you. Unfortunately, their offer is less than you deserve and is all in the bid to cause a strain on your finances. Once you experience financial constraints, you have no option but to succumb to their offer.
Getting the pre-settlement cash saves you time and increases your chances of getting better settlement funds.
Also read: Have You Been Offered a Settlement? Four Reasons to Talk to a Car Accident Attorney First
Conclusion
A lawsuit loan is helpful and can take care of you as you find a solution to your legal battles. However, you need to be eligible for the funds before getting them from funding companies.
The wisest decision you can make is to discuss the matter with your attorney before taking up the lawsuit loans. Your attorney will better guide you on the loan’s implications and benefits. In addition, from your attorney’s advice, you can get an idea of your decision’s costs.
Check and balance your options. First, weigh all the alternatives you have. Then, make calculations of all the expenses you will spend and the settlement you hope to receive. Then, from a good standpoint, you will know the best way to get the loans.
