Lawsuit loans are also sometimes known as settlement loans. It is a form of funding or financing that someone who is filing a lawsuit can apply for. If this person happens to get injured while on the job, it is possible they cannot work anymore. If they decide to sue the company that they were working for at the time, a lawsuit loan can be of great benefit because it allows them to receive funding. The victim can use this for the legal proceedings which will be costly. This allows them to stay financially stable during this period, as the case could go on for a while.
Normally, getting unemployment or disability is not going to be enough, so a lawsuit loan can help them during this difficult time. Let’s take a closer look at some benefits of these lawsuit loans.
1. Ability To Win A Big Amount
With a bit of luck on their side and also depending on the individual’s case, the funding that they receive from a lawsuit loan can indeed help them to win the case. If they win, the amount that they get will generally be larger than the money that they may have invested in the loan. Sometimes, a settlement can be so substantial that the individual who wins their case can survive on just their winnings for many, many years.
2. Good Credit Is Not A Prerequisite
As you may already know, a lot of loans that you may have applied for in the past requires you to have good credit or your loan request is turned down. However, with a lawsuit loan, the individual requesting a pre-settlement loan is not required to have good credit to get this funding. The main thing is to find themselves a really good lawyer, one with a great track record in these kinds of cases. Then, the individual and his or her lawyer can negotiate the terms of their case with that loan company.
During these discussions, if the lender feels that the individual has indeed a really good case and a strong possibility of winning, more often than not, they will receive the required funding. The good thing for these individuals is that in general, the lawsuit lenders hardly do a credit check.
3. Accountability Not An Issue
Lawsuit loans tend to be more expensive than regular loans especially in terms of interest charges. This is understandable, since the lender is taking a bigger risk when compared to other types of loans. However, do not fret. One huge benefit of pre-settlement funding is that if the individual in question happens to lose their case, then they will not be held accountable or responsible when it comes to paying off the loan.
In addition, if the individual happens to win less than what they had anticipated, they would only have to pay the amount of the settlement even though their loan was more. Also, if they happen to win, they will only have to fork over the money at the end of the whole process, not pay monthly instalments like with other types of loans.
Make sure to sit down with your lawyer and calculate everything, including calculating your chances. It is a serious consideration and sometimes, it may not be worth it to pursue something. Take your time and with your lawyer’s help, you can come up with the best decision that is specific to you.