Are you the victim of an injury caused by someone else and are unable to work? Have you filed a lawsuit and are awaiting judgment and a financial settlement? Are you finding it difficult to make two ends meet till you get the settlement? Are you contemplating opting for a lower, out of court settlement because you cannot possibly wait any longer? If your answer is in the affirmative to the above questions, maybe it is time for you to apply for a Lawsuit Loan.
What is a Lawsuit Loan?
A Lawsuit Loan, also called lawsuit funding or settlement funding, is an advance paid to you by a funding agency, on your pending lawsuit settlement. This would help you tide over immediate financial hardships and help you pay for your rent, mortgage, groceries, Utilities and other costs which will not wait.
Though it is called a loan, it need not be repaid like a traditional bank loan, nor does one have to be credit worthy to be eligible for one. A lawsuit loan is an advance payment on the final settlement you will receive once you win your lawsuit. An interest would be charged on the advance and would be deducted from the settlement received. In the event of your losing the lawsuit, there is no need to pay back the advance received.
Two types of lawsuit loans:
There are two types of lawsuit loans that you could opt for – Pre settlement and post settlement. Pre settlement loans are those given before any settlement is reached in court. It helps you sustain yourself and your family till a financial settlement is made. A post settlement loan is one which you can apply for after the settlement has been made but while you are still waiting for the check to reach you.
Who is eligible for a Lawsuit Loan?
You would be eligible to apply for a loan if you have filed a lawsuit for
- Personal injury by others
- Malpractice ( medical or otherwise)
- Auto accidents
- Discrimination / harassment at work
- Other accidents.
How does one get a Lawsuit Loan?
There are numerous websites that offer lawsuit loans. These are frequently advertised on Television and on Billboards. All you have to do is call the toll free number or fill in an online application. A representative from the funding company will get in touch with you and your lawyer to verify details about your lawsuit. If you are found eligible, the representative will make a deal with you and your advance will be wired to your account within seventy two hours. 10 to 15 per cent of your expected settlement would be made as an advance payment.
What is in it for the funding company?
Since the funding agency has to bear all the risk and loss in case the plaintiff loses the lawsuit, it is but natural that they charge an interest on the advance given and claim it once the settlement is made in court. The interest rates are steep, again, expected and acceptable, as no one else would lend you the money at a time when you are laid off work and irrespective of your credit worthiness.
So instead of being pressurized by financial constraints and accepting a low offer that the defendants lawyer is offering you , consider the option of applying for a lawsuit loan to tide you over till a settlement is made .