A lawsuit loan is a new product that has been launched into the market and you might have had heard about it on TV or over the internet.
However, you may or may not have a full grasp of what it does and how it can help you if need be. You might still be wondering what exactly this loan is designed for and what does it do?
If you have this information then it can help you or a friend of yours who may be in one such difficult situation.
So, here is a brief description of what it is and how it can be of assistance to you in your time of need.
- Basic Idea
The basic idea of a lawsuit loan is that it helps you to cover your expenses while you fight your legal case pertaining to a personal injury that you might have had or if you have been the victim of any accident which was because of someone else fault, etc.
There is a free evaluation of your case by lawsuit companies to determine if your case is strong enough to land you a decent compensation.
This compensation is what you then have to use to pay off all of your expenses, including and especially, the lawsuit loan that you intend to borrow from that company.
- What kinds of expenses does a lawsuit loan cover?
This kind of a loan is meant to help you cover your routine expenditure for the duration of your case until a final judgment comes out and your case concludes.
Primarily, it is meant to cover your legal expenses, but, these are not the only expenses that a lawsuit loan is meant to cover, although they are the most important of all of them.
Other expenses include food expenditure, covering mortgage payment, paying bills, travel expense, so on and so forth, all kinds of daily expense that you may be unable to pay in full on your own as a result of you approaching a court over your injury.
- Is this loan a risky venture?
Sure it is but the risk is more for the companies than for the people borrowing it although they too are at risk.
It is risky for the company giving out the loan because if the client loses the legal battle and therefore cannot return the loan, there is nothing that he owes to the company and the company cannot demand anything from him, something which is agreed in advance.
However, if the client does win compensation for his case, then, not only does he have to pay the principal amount that he borrowed but also the compounded interested that is levied on the lawsuit loan by the company.
This means that if the case is delayed for long before compensation is awarded, then, the client will have to pay a big amount as service charges against the favor of being awarded a loan as and when required without even a credit check!