How does processing of Pre settlement Loans working take place?
As we have discussed in our earlier blogs, pre settlement loans are expensive mode of financing the legal requirements during the lawsuit of a respondent. Though, they might appear as highly lucrative legal finance options typically in cases of injury or accidents, yet my suggestion is always go for minimal lawsuit loan amount and ensure that it is typically apt for accrued liabilities. As, neither glut nor insufficiency of these lawsuit loans money would be helpful in lessening your troubles. While excess of the loan amount might tempt you to spend it luxury items and things, shortage of commercial litigation funding amount might not be appropriate in carrying out legal responsibilities well.
Let’s now get an insight in to the working of pre settlement loans.
This can occur in two forms. Either the injured individual or any of his family members can directly contact the legal funding company on the suggestion of the attorney or your preferred legal advisor can get in touch with the lawsuit settlement loans provider company. As soon as lawsuit settlement funding firm receives a request or a call from plaintiffs’ side, their company officials get in touch with the legal advisor to acquire a detailed information on the case. Then they analyze the worth of the case and check whether it is worthy of a lawsuit funding or not. If they find that there are strong chances of respondent’s win, then they regard their application for a commercial litigation funding and proceed with legal formalities.
However, there are two things that should be checked. First are there any hidden charges or extra fee amount which is being charged in lieu of the application processing. Second thing is the format of fee payment if any (there are few legal finance institutions who do not charge processing fee). That means, whether you will have to pay the application fee amount in one installment or regularly in form of monthly payments.
Lawsuit Loans might be the only option for you!
Depending upon how your lawsuit proceedings are on in the court and the amount of time it might take before your case reaches a settlement, you may have varied requirements. These might be in the form of bills, tuition fees, dues, loans or any other type of financial liability. Though the loan amount you require is not much but yes its nature is a crucial one that means the purpose for which you want money might be very critical and urgent. Since your business has come to a standstill during your litigation, you are left with almost no source of money earning. While your need is so urgent that you need the cash advance within less than a day’s time, you are not entitled for any sort of loan from any other funding agency, due to several reasons. If this is type of scenario you are caught in, then friends probably you are the best candidates for lawsuit loans. It appears that in such a situation you have no other choice except go for lawsuit settlement loans. However, it is always better to gain proper knowledge about a legal funding option before you apply for it or else your lawsuit settlement amount can shiver your booty instead of trying to serve the purpose for which you have availed it for.
What are the benefits of lawsuit settlement funding or lawsuit funding?
As far as lawsuit loan benefits are concerned, they are enormous and it might take an hour for me to go on listing them till both me and you get exhausted! However, keeping in mind the time constraint, I am providing you with a quick overview on these settlement loans.
This settlement loan does not require any guarantee, and its proceedings do not depend on the credit score or the employment status of the plaintiff which are the primary conditions for other types of loans making them a viable solution in times of need.
What is the nature of Lawsuit Loans?
The majority of people consider these lawsuit loans as easy mode of funding their needs in situations where the tardy nature of their lawsuit is bound to give them sleepless nights! So, if you are one amongst these people and get attracted towards it only due to its less risky nature and easy form of legal funding in times of distress, then let me tell you that maybe you are at a high risk & not fully aware of the its negative repercussions. While it is true that this form of legal finance is aimed at a motive of providing relief to plaintiffs during their times of acute cash crunch, this fact also remains equally true that if not used in a proper and correct way, lawsuit loan can also cause massive destruction in plaintiffs life. Therefore, the key to living life peacefully while maintaining the smooth flow of money at the same time lies is gaining proper knowledge of the non-recourse form of lawsuit funding. So, our next paragraph will highlight some of the important facts about lawsuit settlement funding.
Important things you should know regarding settlement loans-
The settlement loan is a type of lawsuit debt or secured loan that is non-recourse in nature. Now what does that mean? It simply denotes that the lawsuit Settlement Company or commercial litigation funding firm is entitled for loan repayment from the borrower only and when he or she wins her case. That means, non-recourse manner of these loans indicate that the borrower is only liable to pay the money when he wins his lawsuit. However, tempted at this don’t just blindly go and avail a loan of this type especially if you have other funding options, as not all but few of the funding agencies offer this cash advance to the respondent in lieu of pledge against his or her collateral (real estate property); meaning that lending agency by all means can acquire your property or land in case you lose your case even in higher court!
To how many uses Lawsuit Funding can be put to?
While going through the heading you must have got hold of our blog topic for the day. Though I’m not in a mood to start straight away and before we proceed, you need to answer some of my questions. Don’t get tensed, I’m not acting like your strict English teacher. I simply want that before you get in touch with any lawsuit funding firm regarding your lawsuit loan, you thoroughly analyze your situation and see that whether you really require a legal funding from any lawsuit settlement funding agency or you can do away without that. So, shall we start with our questionnaire?
Answer the following questions to do a thorough investigation of your current scenario –
- Are you not covered under any legal insurance or accident insurance? While this is posing several problems for you as you are unable to handle the expenses of your medical debts resulting from personal injury or any other form of accident?
- You are following your legal trail case and your pension coup or other allowances are insufficient to meet out daily expenses.
- Due to your bad credit history you find your candidature inappropriate for applying any bank loan.
- Your need for legal finance is the most urgent one that may relate to either your legal proceedings forwarding or payment of attorney’s fees.
Now that you have replied the above questions, you are better equipped with an assessment solution. If you really feel that lawsuit loans are the ultimate options for your financial problems then let me tell you that apart from the above mentioned situations you can use these pre settlement loans or lawsuit settlement loans in many other ways too.
That means, in addition to your litigation requirements, pending bills, attorney’s fees and payment of law firms, you can use them to clear off your car loans, credit card bills and what more? You can use these pre-settlement loans to go on a holiday vacation with your family to relive you from the stress you are undergoing.
Lawsuit funding commonly referred to as lawsuit settlement funding is basically a third party funding that is offered to litigants and law firms during their lawsuit proceedings. The cash advance acts as contingency fund that is offered to the plaintiff so that he or she is capable enough to bear all the costs of their legal or litigation proceedings. Right from filing their case in the court till the time it reaches a settlement; almost all the dues and overdue amounts that are putting the plaintiff under unnecessary pressures diverting them from focusing on their case; every expense can be borne by lawsuit loans.
While the lawsuit loan amount can be used to pay taxes, it can also be employed to clear off credit card bills or tuition fee amount. Though, it would be nice if the loan amount is used to cater the most urgent needs of the plaintiff – like the payment of medical bills or personal injury costs or maybe the expenditure of medicines. However, the best part of this type of legal funding is that the plaintiff is not bound to pay the lawsuit settlement amount in case they do not win the case. In spite of this merit for the borrower, none of them would ever wish to lose their case just to save them from the burden of loan repayment. However, looking at the number of default cases and the indecisive nature of pending lawsuits in the court, this legal finance mode has become extremely volatile in nature. This further aggravates the chances of non-approval of these settlement loans or pre settlement loans by the funding agency. Hence, if you are the lucky one who has acquired this loan amount, then try to use is judiciously and not waste on pampering yourself of availing luxury gadgets.
Looking for Legal Finance companies-check this out!
Is your accident lawsuit under trail? The nature of your case is such that it involves many complexities and therefore it might take a long time to reach it to a settlement process. Moreover, due to involvement of lots of people in your litigation, the hearings dates are given with consensus from all concerned parties and therefore do not fall very frequently. However, till the time your car crash case is resolved you are not entitled for any reimbursement from the opposite party. So you basically are caught in a trap and not in a situation to do anything except to wait and wait till a verdict comes in your favor. Furthermore, since your accident insurance amount is insufficient to cover all your liabilities, you do not have any other way of meeting out your finances. While you have to bear your accident medical bills on your own, you also have to look for other family matters at the same time. Every financial situation seems to be very critical and unavoidable. Now, the only option you are left with that can save you from liquidating your position and can offer you with funding opportunities during your lawsuit are, availing a legal finance amount. With 48 hours lawsuit settlement approval facility and no risk benefits, they are perhaps the best choice in cases where plaintiffs are under huge financial pressures. Some of the commercial litigation funding agencies even offer a free case evaluation for the respondents.
However, before you go for a lawsuit funding agency and fill in their lawsuit loans application form for availing a lawsuit loan; you need to be very careful. Don’t get allured by the lawsuit settlement funding company’s promotional offer and read the terms and conditions very carefully so that you can save yourself from future problems.