Are you facing financial difficulties for filing of a suit? Yes, not only is it a crunch on the pocket, what about the time expenses? Any court proceeding is a double-edged sword, taking away your time as well as hard earned money. Lawsuits and personal injury cases require the payment of medical bills along with loss of income. To stop your financial situation from worsening before the final settlement, you need aid. You need a lawsuit advance or a loan.
If you are faced with any financial crunch during the filing of a lawsuit, getting the required aid through a lawsuit loan may be your only option. Here, a lawsuit funding service purchases the rights to a fixed portion or entirety of the lawsuit settlement/award and in exchange advance you a loan amount while the case is in the works.
When does it work?
It is uniquely beneficial in personal injury and vehicular accident cases. In such cases, medical bills keep mounting and as the individual is incapacitated there is a significant chance of a partial or complete loss of wages. When the medical bills pile up, you need a way out, and these lawsuit loans are the perfect option to go for. However, there are a few considerations that you need to be aware of. In the following section, we have listed all the information you will need before going for a lawsuit loan. Visit website for more details.
So, how will it work?
- The first step is the client who was involved in a car or profession related mishap. If you are the client, let’s say you are waiting on your settlement. But the medical bills are mounting up, and you are unable to work because of your injury. In such a case you need to contact a lawsuit loan service provider and talk out all the details of your case.
- The negotiation is done in the presence of the attorney and both the parties determine the amount. However, since there is some risk involved, a firm will only take up the most promising case. So, keep in mind your case might not be eligible for a loan payout.
- The terms of the loan are discussed next which comprises of the term length, fees, and interest rates. After a successful negotiation, the contract is signed.
- In case you lose you do not need to make any payment however in case of a settlement in your favor, the loan firm will receive a part of the proceeds along with the associated fees and interests which is on the “hefty” side. And this brings us to the next point.
About the high rates and fees
According to the experts, the only downside to this industry is the absence of regulation and government oversight. This is the main reason for the high-interest rates and fees. A client can end up paying around 30% to 120% in interest and fees. The charges including administration and application are a serious pocket pinch. Interest rates may vary from annually to monthly.
Lawsuit loans will buy you valuable time
The main benefit of a lawsuit loan is the amount of time you can borrow. A financial complication is a tricky problem to deal with. There is a lot of social stigmas attached to it, and it affects the mental peace and family life more than any other issue. You wouldn’t pile on to your misery when you are already dealing with a physical injury due to your accident for which you are awaiting settlement. A lawsuit loan will help you to buy time which is a very vital and precious commodity when dealing with personal injury lawsuits.
What should you ask yourself before going for a loan?
Yes, there are risks involved, and you should ask yourself a couple of questions before taking the final decision.
- The first question is the time you need to wait for the settlement. The longer a case runs, the longer is the time required to repay the loan which means the interests keep adding up.
- Have you exhausted all the other options for bill payment? Relatives, friends, and family are the ideal help you require, so make sure you have gone over all the different options including the second job.
Some tips for you
Our experts have compiled the following unique tips for you if you have thought it through and analyzed that a loan is the best option for you.
- Inquire about the application fees and ask about a waiver on them if possible. Negotiating a better deal is on you.
- Negotiate and plan in advance with your attorney about the choice of the service provider and the terms of the agreement.
- Make sure you ask about the interest rates and how they get compounded. A firm can have rates annually or monthly, so make sure you are aware of the protocol in place.
- Ask about a cap on the fees or the interest after a fixed period.
- Make sure that your lender or firm has no financial tie to the medical service provider or your lawyer.
Once the firm is selected, the loan amount is often credited within the week. This is possible as there are no credit checks as with the conventional loans. But, you might have to work very hard to convince the firm about a favorable outcome of your case. You might just have to visit more than a couple of firms to get the loan advance. So, don’t lose heart if you are turned down at first.
According to most of the lawsuit lending services, the credit score and the credit history of the individual don’t matter much. As the company assumes all the risk, only the most promising cases will get awarded the loan amount. Keep in mind this general information regarding a lawsuit loan and make sure you read the offer document carefully before signing on the dotted line.