Important Facts You Need to Know About Lawuit Loans

By Dr. Tom Rhudy

Lawsuit loans are non-recourse (i.e., if you don't win, you pay nothing back for the loan) cash advances. They are available to individuals who sustain losses (e.g., personal injury, wrongful termination, etc.), and who agree to repay the advance once the claim has been resolved in their favor.

Lenders incur risks that are inherent in all such loans. Diligent analysis is required prior to offering an advance. An assessment of the claim's value must be undertaken upon the vendor's receipt of your application. There are numerous issues to consider prior to both acquiring and providing such a loan.

How do you obtain such a loan?

Close contact and meaningful discussion between your lawyer and lender adduces the requisite information required to determine whether your case has merit. You begin the process by contacting either a lender or broker of such loans once you suffer the loss/injury.

The lender will determine what, if any, loan will be made, relying on the information gathered, by estimating the costs of settlement, and will then offer that amount to the plaintiff (i..e, the one filing the complaint). If the case goes to court, the defendant (i.e., the one against whom the complaint is made), must pay fees related to court costs and, in many cases, attorney's fees.

There is no obligation to repay the advance if you lose with a non-recourse loan.

Costs related to the advance are contingent on numerous factors, not the least of which is the nature of the case and the lender involved. Many lenders offer lawsuit loans ranging from $500 - $200,000.

When is a Lawsuit Loan Appropriate?

Litigation processes can take years to settle. An injured person customarily must pay all of the officially authorized expenses connected with the litigation while the case is pending. If you are unable to work, will you be able to wait till the case is settled?

Lawsuit loans may spell the difference between paying your bills and having your credit go down in flames!

Prior to considering lawsuit loans, review the issue carefully. Other funding-sources may be an appropriate solution to your dilemma!

This funding obviously comes with costs. When opting for lawsuit loans, choose wisely!

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