Lawsuit funding is a form of cash advance available to plaintiffs pursuing a personal injury claim. On his/her part, the plaintiff undertakes to repay the loan when the settlement is received with the understanding that interest will be charged for the interval between loan disbursal and repayment consequent to the claim settlement. An added advantage to the plaintiff is that lawsuit funding is not dependent on credit scores or income verification. This way, the victims have better control over their personal finances till such time the claim is finally settled.
Why You Should Choose Law Suit Settlement Funding
You are not looking at a windfall gain from law suit settlement funding. Conversely, it helps you tide over those routine financial hurdles like auto loan repayments, credit card payments and similar bills that keep coming in at regular bills irrespective of the overwhelming situation that you are in. A typical personal injury claim can take up to 24 months before an expected pay out reaches your bank. Depending on the extent of injury you could be out of work or working part time leading to poor cash flow. In such situations, many victims resort to more expensive loans like payday loans out of sheer ignorance of a more affordable option before them.
The major advantages that flow to you from law suit funding are the absence of credit check and repayment obligations. That is right! When law suit funding companies approve a loan to you, your repayment obligation is linked to the settlement of your claim. Thus, for any reason, if the other party wins the suit, you do not repay anything to the law suit funding company. Remember though that your attorneys assessment will be crucial in determining the approval of your loan as well as the quantum. This could turn out to be tricky for victims who opt to prosecute their own case. Most law suit funding companies focus on loans ranging between $500 and $5,000. However, depending on individual circumstances, higher sums of money may be advanced taking into consideration your attorneys assessment supporting a significantly higher payout.
Being an Informed Borrower
When you consider law suit funding, it is essential that you position yourself as an informed borrower. Find quality time to research your options and prepare a set of questions that you should ask the law suit funding companies. Remember that law suit funding is not a philanthropic activity. Law suit settlement funding is a business and you should expect to pay more than the usual interest charges. Though you do not have any immediate repayment obligations, it is essential to know the cost at which the lawsuit loans are approved. Often times, your attorney can recommend a competent law suit funding solutions in your neighborhood though the final choice is entirely in your hands. Finally, law suit funding solutions are expensive and you should expect to pay between 2 and 3% per month in the least towards interest charges. One way you can reduce the impact is by pegging the borrowing one notch below your actual needs.
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About the author
Michael Smith is the Customer Experience Director at 911 Lawsuit Loans LLC and is responsible for client relations throughout the funding.