Lawsuits take a long time to be resolved. You may have bills to pay, insufficient or no income, especially in personal injury cases, and this means that you will need to find an alternative source of cash. If you are in such a situation, you can consider taking out a lawsuit settlement loan to help you with your financial needs as you wait for your settlement check. Lawsuit loans offer plaintiffs quick access to cash and are also easy to apply.
A lawsuit settlement loan lender gives plaintiffs money against their settlements or awards. However, these loans may not be right for all plaintiffs, and before you apply, you should ensure that you find the best lender who offers the lowest interest rates and has favorable terms. Lenders like Money First Lending are committed to ensuring that borrowers have financial support before their case settles.
Here are some of the pros and cons of these loans to help you make the right decision.
Advantages of Lawsuit Loans
These are some of the benefits of this loan:
They Can Tide You Over
If you have lost your income and have little or no savings, you will need financial help to cover expenses such as your medical bills, living expenses, car loan payments, and mortgages. This loan will tide you over and ensure that you pay your bills.
You’ll Have Enough Time to Negotiate
At-fault insurance companies or defendants can quickly try to settle a case, especially if the stakes involved are high. They can make their offer fast to avoid paying more if the case goes to trial or to avoid giving the plaintiff’s lawyer enough time to build a strong case against them.
Some plaintiffs are often quick to take the first offer because they need the money to cater to their bills. A lawsuit loan will allow you more time to build your case, negotiate, and consider the settlement offer. As a result, your lawyer will ensure that you get the best possible settlement and have enough evidence to go to trial.
You’ll Pay Nothing if You Lose
Lawsuit loans are a form of non-recourse lending. You are not at risk of losing any money if you do not win the case. The lender cannot sue you for not paying them back or demand any payments from you.
Disadvantages of Lawsuit Loans
While these loans offer the much needed financial help, they have some drawbacks, as well.
They Can Be Expensive
When you pay back the loan, the lender will require you to pay the principal amount you borrowed plus interest on your settlement proceeds. Lawsuit loans are not regulated. This means a lender is free to set the amount of fees, interest, and terms they like. Also, some lenders charge high-interest rates, and you can end up using almost all of your settlement money to repay the loan. However, you will not have to pay more than your settlement.
To find a lawyer with a good reputation, ask for a referral or check online for reviews.
Not All Cases Qualify for a Lawsuit Loan
Lending companies take huge risks because they can lose their money if you do not win the case. To mitigate risks, they look at the case to know if it has a potential for success and also to try to estimate how much the award is. They are at liberty to reject your application if the stakes in your case are low or the case has a low probability of success. You may have to apply to several lending companies before you can find one to fund your case.
Apply for Lawsuit to Help Fund Your Bills
While you are awaiting the judgment or settlement, a lawsuit loan can come in handy to help you sort out your bills. Find a reputable lender and get the cash that you need.