Allow me to paint a picture. You are in a car accident. Obviously, you just need some form of release from the mental torture you are undoubtedly going through. You may not have funds sitting around for such a tedious process. And your attorney advises you to take a lawsuit loan. Obviously, you cannot help but wonder if it is worth it.
Well, if this picture rings a bell for you, you have come to the right place. This article will shed light on why taking a lawsuit loan is ultimately in your best interest.
What Is A Lawsuit Loan?
A lawsuit loan is a cash advance that leverages your expected future compensation as collateral in exchange for an upfront cash payment. The payment of this advance is usually conditional on the outcome of your case. This means that if your legal matter is unsuccessful, you will not be reimbursed for the advance, nor will you have to repay it. As a result, in many states, a litigation loan is not technically a loan.
And, speaking of states, some states, Nevada for example, limit how they can offer pre-settlement loans. If you are a victim of a slip-and-fall or a dog bite, you may not be eligible for a lawsuit loan. You can get a car accident loan in Nevada, though, especially if you already have an attorney representing you.
However, I digress, here you will find out reasons why you should get a lawsuit loan:
1. Immediate Funds
If you have been in a catastrophic car accident, you may be faced with a mountain of costs. Your initial medical treatment may have included a trip to the emergency room or a stay in the hospital. You may also require continuous services such as doctor visits, physical therapy, and medication.
Furthermore, you may not be able to work in the same capacity as before your injury, resulting in an income loss. And while you may be counting on your settlement to pay your bills, the money you are anticipating will not be able to cover them right now. This is why you need a lawsuit loan. It might help you get by until your settlement is approved, especially if you need money for basic living needs.
2. You Will Not Owe The Money If You Lose
One of the biggest benefits of a lawsuit loan is that you will not have to pay it back if your case is lost. Just to put it into perspective, let’s compare it to a bank loan or credit card financing. If you use either of these to borrow money, you’ll have to pay it back with interest at some point. On the other hand, a lawsuit loan does not have this restriction, and this is one of its most tempting qualities.
3. Better Settlement
When you are in a pinch for cash, you could be tempted to settle for less than you deserve in a case just to get something in your bank account. You and your attorney will benefit more from a lawsuit loan because you will have ample time to get your ducks in line.
Furthermore, suppose you do not think you’ll get what you deserve unless you go to trial. In that case, a lawsuit loan can help you acquire the money you need at the moment so you can focus your energy on fighting for what you deserve.
4. No Need For A Good Credit Score
Even if you have a bad or ordinary credit score, you can receive a lawsuit loan. Some lenders may not even bother to run a credit check on you, as they base the ability to repay off the expected value of your settlement. If you were to apply for a loan from a bank or another lending institution, your credit history would be a major consideration. A big plus for lawsuit loans, if you ask me!
5. Only Two Requirements
All you need is an ongoing personal injury lawsuit and legal counsel from a personal injury lawyer for your application to be reviewed. The application process is also quite simple, often consisting of merely giving your attorney’s and your contact information.
Get A Lawsuit Loan
Lawsuit loans often allow fair competition for plaintiffs. Because defendants with deep pockets may be eager to pay out claims, and lawsuits may drag on for months or years. A lawsuit loan enables you to pay your expenses while your attorney secures a fair settlement in your case. Because ultimately, your loan is repaid when you win your case.