The word “loan” is suffix with many things. The prefix depends on the human needs like a new house or a car. The loan also goes with legal matters. One of such is pre-settlement loan. It is another name of loan taken for a lawsuit. This loan is define as a way to provide the required fund to carry on a lawsuit and the other expenses during the period of the lawsuit i.e. before court reach to decision or settlement on a filed suit.
A plaintiff need to consider few facts before zeroing on a legal funding firm and after deciding to apply for a pre-settlement loan. These few considerable facts are: i) Most of the legal funding companies include the appointing a lawyer or attorney before applying for a loan as compulsory condition, without which they don’t consider the candidature to be suitable for borrowing money. The main reason behind this to be sure of the borrower’s victory and since an attorney can only better guide them on the probabilities of your case victory, so it is an important matter to have a lawyer before applying; ii) The length of time their litigation takes to reach a verdict impacts the loan repayment. It is often seen that some legal cases take years to settle. This affects the high rates of interest and in turn the liability to pay the heavy interest rates that every month may accrue with the borrower thus making their situation worse. Therefore, before one decide on the loan amount it is advisable that he or she should consider his or her financial situations well beforehand.
There are many legal funding firms that provide this fund on the basis on few presented approval-able data or evidences. These evidences are mainly: i) the plaintiff has been facing financial issues due to ongoing lawsuit while meeting the needs of his or her daily life; ii) the lawsuit is very much expensive and the plaintiff is unable to meet the expenses; iii) the rewarded amount from the settlement will be a high one that will cover up the loan. Most of the lawsuit funding firms approved a pre-settlement loan mainly on the last two facts.
After the lawsuit firm comes the plaintiff i.e. who can apply for. Though it should come prior to firm but in a legal funding scenario the firm plays the pivotal role by letting the loan get approved like in house loan the bank and its features comes first. So who and when he or she can apply for the loan? The answer is: i) the applicant should be a victim of personal injury or accident, a lawyer or a business entity; ii) the lawsuit is already filed or the victim is planning to file a settlement; iii) there should be already a lawyer or attorney appointed to look after the legal procedures; iv) the applicant should submit all the data or the information that are needed by the legal funding firm to approve the pre-settlement loan.
