What's a "Lawsuit Loan" All About?
A lawsuit loan is a cash advance made to you based on the temporary settlement amount of your case. This lawsuit cash advance is a percentage of what a pre-settlement lender thinks you will receive, if you win your lawsuit. As you know, litigation is tricky and you never have any guarantee that you will win your case, so the lender is at high risk if you lose.
The pre-settlement cash advance is really the loan of last resort when you consider the high risk and accompanying high rate of re-payment to the lender. Because the loans are typically termed as no win, no pay, no risk loans, the fees can seem usurious when in reality, you have to consider that the lenders of these types of loans in more in line with high risk venture capitalists.
Should I Apply for a Lawsuit Loan?
If you look further into this process and you make a decision based on all the facts, you may determine that a lawsuit cash advance could have been the best route for you to go. If you have pressing payment needs or are in the process of losing your home, auto or your kids need cash to continue their college education it may justify the high repayment cost. After all, peace of mind is priceless. Pre-settlement funds can relate a lot of stress.
Is This a Cash Advance From My Lawyer?
Lawyers and attorney firms are prohibited from making cash advances to their clients because it could be construed as a conflict of interest. Let's face it, if your lawyer is supposed to be looking out for your best interest and at the same time is trying to collect past due funds from you, that would be somewhat disturbing. The act of your lawyer taking your case on a percentage is not the same as advancing cash against your settlement funds.
Where Do I Get Lawsuit Pre-Settlement Funding?
You can go online or if you live in a major city, there are probably pre-settlement funding companies in your area who will make you a lawsuit loan if you have a strong case and are likely to be awarded a large settlement. Some of the companies will loan as little as $ 250. Most of the companies limit the maximum to around $ 25,000 no matter how much you are suing for because they normally only make your lawsuit loan based on about 10% of the most they think you'll be awarded.
What is a Lawsuit Loan Broker?
Lawsuit loan brokers are very well versed on the different types of cash advances that each company is willing to lend. They also can quickly resubmit your application to another pre-settlement funding company if you are turned down for some reason. The broker is looking out for your benefit and is another source of help if you have a problem during the process. Asking a lawsuit cash advance broker to assist you can be one of your best decisions during your lawsuit.