Lawsuit Loans Offer Assistance While Seeking for Justice
Litigation loans can help a plaintiff in his or her path of seeking justice in a variety of ways. First and foremost, they offer individuals with immediate cash, giving them the much needed gas to pursue the case and stay strong, thereby rejecting the low-ball amount suggested to them by the defendants. Aside from that, these settlement loans also give lawyers a chance to accept multiple cases based on a contingency fee, making sure that attorneys are faced with legit cases, notwithstanding the ability of the plaintiff to pay for the costs.
Legitimate Cases
Because of the high risk that is involved in these lawsuit settlement loans, legal financing firms are considering applications carefully, seeing to it that they provide cash advance only to the plaintiffs with strong cases. Also, legal financing pushes lawyers to accept strong cases only because of the contingency fee, since there are legal finances that need to be paid.
Avoiding Bankruptcy And Bad Credit Rating
In a lot of pending litigation cases, plaintiffs, while in the middle of the lawsuit, are faced with ruined credit scores and bankruptcy due to the loss of a job or inability to work following the injuries incurred and the mounting medical bills. Pre settlement loans allow these individuals to receive cash immediately, giving them the chance to pay for the day-to-day expenses and protect their credit ratings.
Lawsuit Loans Are Not For Everybody
Because of the non-recourse nature of a lawsuit loan, legal funding firms can only get their money back if a plaintiff yields a favorable court verdict or a good settlement out of the courts. In cases when the complainant decides to abandon the whole case or if it is lost, the complainant owes nothing to the lawsuit funding company and the investment of the lender is considered lost. If, in a few cases, the case gets lesser than what is expected, the firm will also lose a huge part of what it gave out initially. Because of these high risks, legal funding firms charge a substantial fee for the services they offer to the public. This is the reason why lawsuit cash advances are deemed more expensive compared to the other traditional funding methods like reverse mortgages, credit line and personal loans. However, even if these lawsuit loans are costly, they have excellent advantages. For instance, with lawsuit loans, repayment is not demanded immediately. In fact, the amount will only be repaid by the client when a successful verdict is given by the court.
Although they are known as litigation loans, the advances are actually given on a non-recourse basis. Employment verification or credit history is not being checked; instead, lending firms look at the strength and merits of a case. Apply now for Structured Settlement Loans cases.
