Lawsuit Loans

What are lawsuit loans?

Lawsuit loans also called lawsuit funding, is how plaintiffs and attorneys receive cash advance on the future predicted settlement amount of a lawsuitLawsuit loans  are available for cases such as auto accidents, personal injury cases, wrongful death and medical malpractice suits along with occupational accidents, divorce and inheritance claims.

Lawsuit funding is non-recourse – What does this mean?

The name lawsuit loan is a little misleading as it is not really a loan as such. It is actually an investment in the result of the lawsuit. When either an out of court settlement has been agreed or a case has been won in court the lawsuit loan along with associated fees is repaid from the proceeds of the settlement. Because of the non-recourse nature of a lawsuit loan should the plaintiff lose the case they do not have to pay back the lawsuit settlement funding amount.

 

Who can benefit from lawsuit loans?

People involved in a personal injury lawsuit case, wrongful death lawsuit, medical malpractice lawsuit etc can apply for a lawsuit loan against their potential payout should they win.If approved you can get a cash advance to use until a settlement has been made at which time the lawsuit loan would be paid off. For individual plaintiffs involved in a lawsuit, the loan offers a way to cover lost income and help them pay rent,
their utility bills,make car payments etc.
    

For a small business involved in a lawsuit  the negative impact to their bottom line resulting from the negligent or malicious behavior of another company may cause financial hardship.A lawsuit loan could provide cash to help that business keep ticking over until they get a settlement from their lawsuit. Attorneys and businesses like everybody else have to wait for compensation until their court case is settled. Attorneys receive their payment only when the claim is settled.Quite often attorneys use structured settlement companies loan to cover the costs of running their practices.

People involved in Inheritance and Divorce cases such as When somebody dies or a couple begin a divorce.These cases can
take months sometimes even years for the funds of the estate to be allocated. Lawsuit  settlement funding is a way for the litigants to get a part of those funds up front.

Is a lawsuit loan different from a conventional loan?

Unlike mortgages and traditional bank loans there are no application Fees or Monthly Payments.Fees on a lawsuit loan accumulate until the lawsuit is settled and only then is the loan paid back from the proceeds of the settlement.

Good credit and Employment background checks are not required unlike with more traditional loans. Because a  lawsuit loan is not based on your ability to pay but on the prospective lawsuit.If you should lose your case and not get a settlement you do not have to pay the loan back! This is by far the largest difference between a normal bank loan and lawsuit settlement funding. Bank loans must be paid back whether you are able to pay or not while lawsuit loans are only required to be paid
back if and when the lawsuit has been won.

The application approval process for a lawsuit loan?

It may take as little as 48 hours for the lawsuit loan to be available to you once all the neccessary documents have been provided.
You initiate the process by applying for lawsuit settlement funding either by telephone or online.The lawsuit funding company will then get in touch with your lawyer and ask for the documents they need to review the
case.

If the lawsuit loan company is willing to make the advance payment and issue a lawsuit loan a contract will be sent to your lawyer.You sign on the dotted line and your lawyer acknowledges the agreement as it is he or she who will be issuing the payment when your case is settled.

When the lawsuit loan company gets your signed and acknowledged contract either a check will be sent to you or the money will be wire transferred directly into your bank account.The only thing left to do now is to win your case.