Ivan Clark 2017-01-10 12:00:00
The chances of becoming involved in a lawsuit at some point in your life are actually higher than you might think. If you do, you will find out that lawsuits take a long time to get from start to finish.
If you’re unfortunate enough to be injured to the point where you cannot work and are suing because of that, your funds to go after a lawsuit might be limited. This is where lawsuit loans, also called pre-settlement loans or settlement loans, come in. These help you pay for legal counsel or any other fees and expenses you might have while you go after your case. These can even cover your living expenses until you reach the end of your civil case.
Litigants can finance their litigation via a third-party funding company in exchange for a portion of the judgment or settlement. If the litigant loses, he or she will not have to repay so that means the funding company will only give you the loan if the suit has sufficient merit.
There are several benefits to getting a lawsuit loan for your medical malpractice suit, real estate dispute, inheritance claim, personal injury lawsuit, and other lawsuits.
1. You don’t pay until the case settles.
Unlike a bank loan, you don’t have to make a monthly payment. As mentioned, if you lose the case, you don’t have to pay it back at all.
2. Some lenders don’t do credit checks.
Since the loan isn’t based on your personal credit, some lenders don’t even bother doing credit checks.
3. You have access to legal financing even if you have bad credit.
It’s the merit of your lawsuit, not your personal credit history, that determines if you get the legal funding advance. Further, if your personal injury case is one that will likely get you a large amount through settlement or verdict, lending companies will have no problems giving you a large amount of money.
4. You will be able to use the money for personal matters.
You can use the loan to avoid eviction, bankruptcy, and foreclosure. Use it to pay for tuition fees, mortgage payments, car loan payments, and living expenses. If you need to pay for medical expenses that aren’t covered by OHIP, you can do that, too. You may also use a lawsuit loan for investment purposes.
5. You can avoid forced settlements.
People under financial strain are more likely to be pressured into reaching a settlement quicker than they want. A lawsuit loan will give you and your lawyer time to negotiate the settlement to your benefit, or go to trial if the defendant doesn’t want to pay. If you want more information, you can learn about litigation at Above the Law.
There are fewer cons than pros here, but they still must be considered.
1. Qualifying may be difficult.
The lending company is taking a huge risk by giving lawsuit loans without any idea when the loam will be paid off, and they will lose their money if the case is lost. Plaintiffs will sometimes have to apply to a bunch of different companies before they get approved for a lawsuit loan.
2. Settlement loans can be expensive.
The amount you have to pay back after you reach a settlement or win the case include the principal you borrowed plus accrued interest. Since these cases can take months or years to be resolved, your loan could compile a lot of interest, making the amount you pay back a lot more than what you originally borrowed. For more information, you may want to consult with the professionals at Lifeline Litigation Loans on how to settle with lawsuit loans.
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