A relatively new source of financing is now available for both individuals and business owners. It is called Lawsuit funding or often referred as Lawsuit Loan, Legal Finance, Pre-settlement financing, Ligitation financing, Lawsuit cash advance, or Injury settlement funding, but these are not loans because the money does not have to be paid back unless the case is won or settled. These are Non-Recourse Cash Advances. It carries No Risk because Plaintiffs owe Nothing if they lose the case. The client must be represented by an Attorney, and need money prior to settlement due to financial hardship.
Lawsuit loan or Legal finance can provide a very timely financial solution to help plaintiffs who are having financial difficulties. Usually the Plaintiff’s financial hardship is the result of being injured and not being able to work.
Mostly plaintiffs have missed work or lost their job and can no longer meet their mortgage/ rent or car payments. Many of them may be one or two payments away from Foreclosures. They may be in need of Medical treatments. They need to pay Children’s education expenses.
But now these new Lawsuit loans are great help to plaintiffs. In the past, these claimants have needed to accept lesser settlement amounts due to pressing financial difficulties. Now, clients can sustain their personal lives and give the attorney the necessary time to achieve the full value of the case.
The process to receive Lawsuit loan is Risk Free & simple. There is no Application or upfront fees. Approval is fast. Plaintiff may have a bad or no credit. There are no monthly payments. They pay back only when they win or settle the case. They owe nothing if they lose the case. They can use the Cash Advance in any way they like.
There are divided opinions on legal financing with some viewing it with suspicion. It’s a type of debt, after all, and none of us like living under the shadow of a loan. The good news is that legal financing has no hidden traps and you’re not obligated to repay the amount if you lose the case. You pay only if you win, nothing more.
Because the risk of losing a case is present lending institutions don’t freely away their money. There are qualifying factors you must meet and some lenders have stricter rules than others. Here are the general expectations. See if you meet them.
You need a legal team or a lawyer to represent you. Lenders are taking a risk with your case as even if it seems the verdict will fall in your favor, it may not. As such, they must increase the odds of you winning so that they make their money and you make yours. If you haven’t hired anyone to represent you, do so as it’s the first aspect lenders will look at. Keep in mind that they can’t recommend or provide an attorney for you.
• Ability for the defendant and insurance company to pay. Lending companies make their profit by having clients repay the loan amount plus lending fees and interest. Since they’re risking their money, they naturally want to make sure there’s a good chance of getting it back. Therefore, defendants are people who have the means to pay compensations and settlements. So if you’re suing someone who’s broke the odds of you getting legal financing are low.
• Your case should be specific as lending companies cater only to certain types of cases. For example, personal injury cases are popular and lenders regularly finance injured parties. However, they may not do the same with property disputes. You’ll have to, therefore, find a company that caters to your unique case.
• Your attorney will need to agree to the financing agreement and sign it. This prevents any misunderstanding later and is indeed beneficial to you as it shows that your lawyer has read and reviewed the terms and has advised you accordingly.
A lot of people & businesses are being forced to settle early for way less than they deserve because they simply can’t afford to wait any longer. There is no reason for them to settle for less than their case is worth, stromlaw.com is a good place they can refer to for advice on how they can avoid early settlement.