Filing a lawsuit is not an easy process. It does take time and a lot of effort by the individual bringing a case to court. Additionally, on top of it being tedious, it can also be expensive. Therefore, people filing lawsuits can struggle financially through the duration of the case. As a result, an option available to them is getting an advanced loan prior to a settlement, called a lawsuit settlement loan.
It can also be referred to as a litigation loan or a settlement fund. These loans are provided by litigation loan companies, where a loan is provided to help the plaintiff financially. The loan is repaid from the settlement amount.
If you are considering applying for a lawsuit loan, contact a litigation loan company and make sure to get detailed information about the process of a litigation loan. It is essential to ensure you understand the process. It’s also important to look for a company that provides thorough support to clients, low or no early interest payments, and low loan rates.
Waiting for a settlement can take from a few months to a few years to be resolved. The financial strain from waiting for a settlement can certainly take a toll on your daily life. For this reason, it is worth looking into a litigation loan company to ease your financial difficulties.
To help with any inquiries, here are five facts to keep in mind about lawsuit loans. It is also essential for attorneys to be knowledgeable about lawsuit loans in the event of inquiries from clients.
1. Loans Always Include Added Interest
In addition to an application fee, loans offered by a litigation loan company will be accompanied by an interest rate that accumulates throughout the duration of the court settlement.
Some companies will charge a higher interest rate than others, so it is important to find a company that does not charge a high interest rate and possibly one that will not require early interest payments prior to the conclusion of the settlement.
2. Lawsuit Loans for Attorneys
Lawsuit loans are not only available to plaintiffs filing a suit but also to the attorneys they work with. Some loan companies will provide money in advance to attorneys. This cash advance can aid attorneys in growing their businesses, taking on more cases, and ultimately offering the best services to clients.
3. Litigation Funding for Different Cases
Litigation funding can be used for a variety of different cases. Some examples include disability, personal injury cases, and loss of employment.
Companies don’t always provide enough support to employees when a disability claim or personal injury coverage fails to be approved. An individual in this position can lose income due to the inability to work as well as experience added stress due to accumulated medical bills.
Consequently, these individuals need to find financial support to help tide them over as they wait for a settlement. A litigation loan company can offer significant help to the plaintiff in these cases.
4. The Loan Company Does Not Get Involved in the Lawsuit
Aside from accepting an application for a loan and providing the funding, the litigation company has no further responsibility in regards to the lawsuit, nor are they required to provide legal advice. That is solely between the individual and the lawyer. The individual can keep the lawyer informed of the loan application, but the case itself is for the lawyer to manage.
5. Attorneys Can Help with the Application
Carrying on from the last point, be sure to talk to your attorney prior to applying for a loan. They can help with any necessary document preparation, resulting in a quicker process. Additionally, they may also be able to suggest reputable companies to you.