Chances are if you find yourself on the plaintiff side of a lawsuit, something unfortunate has happened. An injury, an illness, a loss in the family. The harsh reality of the situation is that these situations, while not your fault, can be the harbinger of difficult financial times. You cannot always sit around and wait for the somewhat arduous and drawn out legal system to financially compensate you. There is another option, and a risk-free option at that–a lawsuit loan.
There are hundreds of companies around the world that provide lawsuit loan services. You’ll find them under a plethora of monikers (e.g. loan lending, legal financing, litigation lending, settlement finding). It is VITAL that you know your options. Some companies offer these ‘risk-free’ loans only to take nearly all of your settlement when it is finally awarded by the courts. Granted, because of the risk assumed by the lender, there are necessary financial compensations. However, if you aren’t careful, you can fall in the hands of predatory lenders.
Keep an eye out for hidden fees like closing costs and documentation fees. Also, beware of non-fixed APR; the lending rates can quickly skyrocket leaving you with nothing when all is said and done.
With all lawsuit lending companies, the process essentially looks the same. After applying for the loan, the lender will contact your attorney for details on the case. Once ascertaining all the facts, and based on the legal expertise and experience within the lending firm, they’ll decide what the likely verdict and financial outcome of your case will be. Based on this, they’ll offer you an appropriate loan. Again, and this can’t be stressed enough, take the time to review all the details of your loan so you know that you’re not being taken advantage of.
The most important aspect of these loans is that they are non-recourse arrangements. In other words, if for some unexpected reason you do not win your lawsuit, the money you received is yours to keep. Obviously, loan companies want to avoid such situations, but part of the agreement is that the inherent risk is the lender’s to bear. The structure of the loan should ideally protect you.
Certainly you have the tenacity and resilience to get through any difficult time. But, it can’t hurt to have a little help. And that’s what the right lawsuit lender can do for you: offer a helping hand.