Waiting for a lawsuit that seems clear-cut to conclude and provide you with compensation for your damages can be difficult especially when you have bills and expenses piling up. Lawsuit loans provide an option for plaintiffs to find relief through attaining a cash advance on their settlement from a lender that can help pay for immediate expenses. While legal funding of this kind is often referred to as a lawsuit loan, there are many discrepancies between them and more traditional loans.
If you or a loved one are struggling with finances while awaiting a settlement then consider filling out a contact form on anylawsuits.com to begin the evaluation process to determine if you may be eligible to receive settlement funding. Anylawsuits.com is a trusted lender that works with clients to get them the necessary financial relief they need to get back on their feet and can help you as well.
What is a Lawsuit Loan?
The term lawsuit loan is misleading since it technically is not a type of loan but instead is a non-recourse cash advance against a legal settlement that the plaintiff is estimated to receive. “Lawsuit loan” simply happens to be one of the most common colloquial terms for this type of legal funding.
A non-recourse cash advance of this kind is also sometimes referred to as a
- Settlement loan
- Pre-settlement loan
- Settlement funding
- Pre-settlement funding
- Legal funding
- Legal loan
How a Lawsuit Loan Works
With a lawsuit loan, you are able to get a cash advance, typically in the form of a lump sum payment, from a lender that uses the potential settlement you acquire as security. The lawsuit loan is typically a percentage of the possible settlement value the lender will calculate and is typically used to handle immediate expenses a plaintiff is dealing with such as medical bills, rent, court fees, etc.
Acquiring a Lawsuit Loan vs. a Traditional Loan
One of the primary differences between these two forms of funding is how one goes about acquiring them. Most of us are familiar with the process of applying for a traditional loan for a home, car, business, etc. Banks and other lenders thoroughly evaluate a potential debtor by analyzing everything from their credit score to assets, and even their salary. Banks use this risk assessment in order to determine your eligibility for a loan as well as the rate of interest you must pay for the money borrowed.
Settlement funding differs in that you do not need to provide nearly as much information to lenders. Anylawsuits.com does not require information such as your credit score, your assets, or your salary. Instead, a settlement loan is much easier to obtain with money available to plaintiffs in as soon as a day or less.
Eligibility for a Lawsuit Loan
While lawsuit loans do not have the same stringent requirements for eligibility as a traditional loan, there are still several criteria that need to be met before a legal funding firm will consider providing a plaintiff with a non-recourse cash advance against their settlement.
Plaintiffs Need a Viable Case for a Lawsuit Loan
Lenders are still taking a certain degree of risk when offering a cash advance to plaintiffs with lawsuit funding so the case the settlement is from needs to at least be viable. A legal funding firm will get the details of your case to see if there is strong liability, sufficient evidence, and general merit to your case so that they are not throwing their money away.
Lawsuit Loans Require Plaintiffs to Have a Lawyer Representing Them
Perhaps one of the most important factors regarding case viability is whether or not a plaintiff seeking a settlement loan has a lawyer representing their case. Without a lawyer attached to the case, the chances of successfully attaining a settlement or winning a trial go down significantly.
A lender will not bother with an application unless there is involvement of a lawyer. In most cases, an application for a lawsuit loan cannot even be properly completed without the cooperation of a representing lawyer since they will have information only they can provide.
The Lawsuit’s Defendant Needs to Be Able to Pay a Settlement
It seems obvious but an important component of lawsuit loan eligibility is a defendant’s ability to provide compensation to a plaintiff. Put simply, the person being sued in a lawsuit you are trying to get a lawsuit loan for needs to have insurance. If not, there is no settlement to get a cash advance on in the first place.
Paying a Lawsuit Loan vs. a Traditional Loan
Another critical difference between a lawsuit loan and a traditional loan is how they are paid back by borrowers. With a traditional loan, a debtor is given the money from a loan and they are expected to pay it back with an additional percentage interest month to month with something like a house up as collateral so the bank or other lender can recoup losses if the debtor is unable to pay. This system typically calls for debtors to start paying right away and can put a lot of financial stress on the debtor to fulfill their financial obligation to the lender.
Lawsuit loans are non-recourse cash advances and not actually loans as the term would suggest. Non-recourse means that the repayment of the cash advance hinges on the satisfaction of a condition. In the case of lawsuit loans, you only have to pay back the money if you get a settlement or win your case in court. This is why legal funding firms are so careful about who they lend to. With a traditional loan, you pay back the money no matter what.
Also, pre-settlement loans do not require you to pay back the money lent until you have gotten the settlement or won the case in court. A normal loan will typically involve the debtor paying back the money in a monthly repayment period sometimes immediately after the loan is taken out. A lawsuit loan is a cash advance against a lawsuit settlement which means the lender takes the money they lent out of the plaintiff’s settlement.
Contact Anylawsuits.com About Your Settlement Funding Needs
If you or a loved one have filed a lawsuit and need a cash advance on your settlement to cover immediate expenses then consider filling out our application to begin the process of getting a lawsuit loan. Anylawsuits.com can assist you with getting the money you need as soon as a day or two so that you can deal with the costs affecting you right now.