Is It Worth It To Use A Settlement Loan
Litigation processes are usually very long, time consuming and annoyingly stressful.
If you have suffered personal injury or you´ve been involved in a car accident, even your car reparation bills can put you off the track and not to forget large medical bills due to your possible hospitalization.
All extra costs, anything that puts you out of work, or God forbid, causes you some permanent personal damages, simply needs to be resolved as soon as possible.
However, many plaintiffs are forced to wait for a long time in order to settle their case. In the meantime, your debts are accumulating and you are barely hanging on.
When you are caught in a situation like this, and the resolution of your case is still in the long run, getting a Settlement Loan can ease your pain and in addition give you the time you need not to settle for less then you actually deserve.
In case you are a plaintiff involved in a lawsuit process, hoping and waiting for your settlement to happen so that you can pay your unexpected bills, you might consider getting a Settlement Loan.
If you were wondering is it worth to use a Settlement Loan for your lawsuit, read through the following guidelines and find out more about the benefits that comes with a Settlement Loan.
What Is A Settlement Loan
First of all, you must understand the mechanism of Settlement Loan itself. Borrowing the money, yes, but for a special purpose and with special benefits. A Settlement Loan is a certain amount of money offered to a plaintiff who is involved in a personal injury litigation for his/hers disposal.
A Legal Funding Company that is giving you a Settlement Loan is actually buying a small portion of your lawsuit award or settlement, while your case is still pending or your award is withheld.
Most importantly, you need to understand that a Settlement Loan is non-recourse transaction. It is not a Loan in traditional sense. There are no monthly installments or upfront fees and you are only obliged to pay off the agreed percentage if and when you win the case. It is a non-recourse transaction where your risk is equal to zero and your personal finances are not affected. Depending on your lawsuit status you can apply for a Pre-Settlement Loan or Post Settlement Loan.
Pre-Settlement Loan is for plaintiffs who are involved in a litigation process where a settlement has not been reached. It is a general knowledge that lawsuits are very lengthy and exhausting. During litigation we must spend extra time, energy and money that we usually don´t have. A Pre-Settlement Loan is very valuable when you need that extra cash to cover your everyday expenses or extra medical bills. In addition, Pre-Settlement Loans can be your resistance tool not to agree to an unsatisfactory settlement.
On the other hand, Post-Settlement Loan is available to plaintiffs whose litigation is concluded but their award is withheld.
Just when you think that your suffering has come to an end and your long awaited award is around the corner, you are noted of appeal process or other delays including administrative procedures or unresolved Medicaid liens.
Therefore, a Post-Settlement Loan is available for you if you need that extra cash while you are waiting for the administration discrepancies to be resolved.
How Settlement Loan Actually Works
Many plaintiffs involved in litigation process do not realize that they can get a Settlement Loan before or after they case is closed. Litigation financing in a form of a Settlement Loan is relatively new aspect of legal funding and its therefore unknown to many people.
Procedure of getting a Settlement Loan is actually very simple but you must know how a Settlement Loan actually works.
Well, you would not believe it, but, it is this simple:
Apply – Get Approved – Receive – Win – Payout, or
Apply – Get Approved – Receive – Lose – Pay nothing.
Assuming that you are also not familiar with this type of financial lending, first you need to know that Settlement Loans are generally available for accident related injuries, negligence, malpractice and other occurrences including false arrest, age/employment discrimination, wrongful death and many more.
If your case falls in one of the above categories and you are not in fault, you can safely apply for a Settlement Loan.
After the application process, Legal Funding Company evaluates your eligibility. The Eligibility of your case is generally based on damages, liability and insurance.
Injuries that you suffered from the accident you have been involved in, lost wages due to the recovery time or termination of the employment falls under the damages evaluation. The liability determines who is responsible for the incident and the insurance reveals the amount of money the obligor´s is able to pay.
So, after you applied and your funder finds your case eligible, you will receive a Settlement Loan offer in usually 24 to 48 hours.
When both parties agree on Settlement Loan terms and after you sign a contract, the cash advance can be in your account the same day or the day after, or a check can be mailed to you. Please note that this money given to you as a Settlement Loan is for you to spend however you want and you are only obliged to payoff signed percentage only when and if you win the case.
Settlement Loan vs Bank Loan
Any kind of debt is always a burden, but we live in the era when almost nothing is possible without some initial capital provided to us by the third party. At first, banks existed merely to save our money from domestic theft, and then, in time, they developed into our first best friend when we needed various financial supports.
Borrowing the money from somebody, anybody, always comes with interest. To be fair, borrowing is also a type of business which main profit is interest itself.
Bank loans are our tradition and it is a bank we first think of when we are in need of that extra cash. To get a bank loan, for your lawsuit, is possible, but even though bank loans or line of credits have much lower interest rates, getting one quickly can be very difficult. To get a loan from a bank you often need to provide hard collateral in form of non-liquid assets such as personal vehicles, home equality or real estate. Furthermore, if you are a person who can meet bank´s requirements, you still need to pay monthly installments and fees no matter what is outcome of your lawsuit.
On the other hand, a Settlement Loan is non-recourse transition given to you at your disposal so that you can cover any expenses you need. Unlike bank loan, you owe your funder nothing if you lose your case. Settlement Loans require no hard collaterals which come as a relief to many plaintiffs who are already in debts and mortgages.
Settlement Loan rates are higher than the banks fees but you can acquire one almost overnight and save yourself from overwhelming financial burden.
What Do You Need To Know Before Considering A Settlement Loan
As I have already mentioned above, the first thing you need to be aware of, before considering a Settlement Loan for your lawsuit, are the types of lawsuit cases that are covered by a Legal Funding Companies.
For now, Legal Funding Companies provide cash advances for plaintiffs that have suffered from some personal injuries, weather when involved in car accident or work related injuries. Also, your funder will support your case if you have suffered from animal bite, if you slipped and fell or if you were a victim of general negligence, medical malpractice or you were an object of discrimination.
Secondly, you have to know that the rates in Settlement Loans are higher than rates of bank loans or line of credit. However, you must be aware that all rates involved in a Settlement Loan are to be paid only when and if you win the case.
Biggest Settlement Loan Benefits
When you are involved in a personal injury litigation process you are from the start at some disadvantage. Hopefully you suffered minimal injuries, but if it happens that you are laid off from work due to your recovery time and you lose your regular income, your life is automatically put on hold and everything is turned upside down. Even healthy cash reserves can easily be depleted in lengthy litigation processes.
With a Settlement Loan you will get the cash needed to cover your necessary expenses and some breathing space while you are keeping up with your everyday bills.
Typically, you don´t need good credit to get a Settlement Loan. Settlement Loan companies usually do not run your credit check, instead they focus on the prospects of a successful outcome of your lawsuit.
Settlement Loans are generally processed very quickly. Maybe, one of the biggest Settlement Loan benefits is that of a fast cash transfer. When you are a plaintiff, you already know that lawsuits are expensive. Nevertheless, you still need to cover all other expenses and yet keep your head above the water. At some point, this Goliath faith will wear you down and you will need some help to get through. Therefore, it is good to know that Legal Funding Companies can provide you with quick financial assistance.
You also know that legal battles are time consuming. While your case is dragging on, your financial state is less and less appealing. Insurance companies and large defense firms often employ delay tactics to force a plaintiff into taking a low ball settlement offer in order to maximize their profits. With a Settlement Loan you can buy that necessary time and be in position not to settle for less than you deserve.
Settlement Loans are more expensive but they are also much less risky. The Cash Advance that you receive is a non-recourse transaction. As opposed to bank loans, where you still need to pay your monthly installments, regularly, regardless of your lawsuit outcome, the Settlement Loans are not repaid if you lose your case.
How To Protect Yourself From Bad Settlement Loan
Naturally, the more you know the less you fear.
Since Settlement Loans are relatively new in the legal world you should investigate all its pros and cons. You will want to know how it works, what´s in it for you and which are the best Legal Funding Companies out there. You need to find a reputable funder who will not work only for its benefits but for your sake as well.
Before you decide which Legal Company services you will use, you should do your homework. In order to protect yourself, your future award and your hardly earned assets, do some Legal Funding research and you will find a company you can trust.
Good preparation is required, so be prepared and educate yourself about your case as much as you can. Your knowledge of your case is essential when you are conversing with Legal Funding Companies. The more questions you can answer at your initial conversation, the faster your application can be process and if approved to get your cash.
Make sure you are well organized. Make sure your companies´ lists are separated and keep track of all the information they provide you with.
Focus on most important questions that are relevant to your case including fees and rates, hidden fees, broker or direct funder, option of success based fee and find the cost/benefit rate that works for you.
Ask your lawyer for an advice. Even though Settlement Loans might be news for you, your lawyer is probably aware of it and had some experience with Legal Funding Companies from before.
Real Settlement Loan Calculator
Real Settlement Loan Calculator can help you get a general idea of how your settlement breaks down. No two cases are the same and there are lots of other factors that go into understanding the value of your claim.
The calculator can be a good tool to understand the range of values that you can expect at your settlement or from a jury trial.
Real Settlement Loan Calculator is used to get you general idea about your property damage, medical expenses or lost wages.
What Happens With Settlement Loan If You Lose Your Case?
As I have mentioned several times in this article, a Settlement Loan is a non-recourse transaction. This is probably most important and the most attractive part of the Settlement Loan. One of the major benefits of a Settlement Loan is that of a very low risk for plaintiffs, actually none.
When you receive your Settlement Loan, there are no restrictions of how that money can be spent. In case you lose your case and the cash advance that you have received is spent in the meantime, you are not obliged to repay your Legal Company anything, not even underwriting fees.
Therefore, if for some reason you achieve bad Settlement conclusion you do not need to worry about repaying the Settlement Loan.
So, if you are still wondering is it worth to use a Settlement Loan, or if you have any additional questions or comments please contact us and we will clarify any doubts and uncertainties you might have.
To know more details about lawsuit funding benefits, call us here at Fast Cash Legal (844) 213-1116, or browse through this site.
Start Your Free Application Now
- No credit checks
- If approved, you can get your cash in 24 hours
- If you lose your case, you owe nothing
- There is no obligation if you apply then decide not to take the funding