Plaintiffs involved in a personal injury lawsuit often find themselves in a difficult situation financially. While you want to avoid settling for less than you deserve, paying the bills has become nearly impossible due to medical costs associated with your injuries, having to attend court, and perhaps the fact that you cannot work, if applicable. Lawsuit loans are designed for those in this situation, who want to continue forward with their lawsuit in order to get full compensation, but who fear financial disaster or even bankruptcy.
Are lawsuit loans actually loans? No. In fact, litigation funding is a process in which a plaintiff may borrow against his or her pending settlement if approved. In essence, if you do qualify you may get a cash advance of up to 10% of your anticipated settlement. This money can be used to pay household expenses, medical and doctor bills, attorney fees, and other costs.
Who qualifies? Anyone with a strong case, regardless of credit rating or current employment status. As long as your attorney can present the required information and documentation demonstrating that yours is a viable case which will likely win in court, you will likely qualify. Lawsuit loans are given based solely on the strength of your case, so there is no need to worry if your credit is bad or you are not employed.
How do you repay the advance? Litigation funding is a non-recourse type of funding, which means that you only repay the advance if you win your lawsuit. With lawsuit loans, if you are not successful in winning your lawsuit, you do not repay the advance. Interest and fees are only repaid in the event that you win as well, so you are at no financial risk whatsoever if you do not win. At the time you begin receiving your settlement, you will be required to repay the advance, along with any fees or interest which apply.
With lawsuit loans there are no up-front fees or out-of-pocket expenses to worsen your financial situation. To sum it all up, you are borrowing your own money, and only repay the funding company if you win. While there are fees and interest associated with litigation funding, the cost when compared to the loss you will experience if you are forced to settle for less compensation than you deserve is of little consequence. Learn more by discussing this type of lawsuit funding with your attorney.