If you file a lawsuit and intend to see it
through, you’re in for the long-haul. Trials can take from six months to three years to get settled depending on the strength
of your case and the ferocity of the defendant.
But if you filed a personal injury case, those
years can exacerbate the pain. A loss of income uncovered medical bills, and
the cost of dealing with the strain for you and your family continue as you
wait for a resolution.
The last thing you need is to find yourself in
real financial jeopardy while waiting for your settlement. That’s why some
people turn to lawsuit loans.
What is a lawsuit loan, and is it the right
option for you? Keep reading to learn more about this form of settlement
What Is a Lawsuit Loan?
Lawsuit loans, or settlement loans, provide you with cash as you wait for your case to move
through the courts.
When you take out a loan, you borrow against
the amount you expect from a settlement. You then pay back the loan, plus interest
or fees, when your agreement finally clears.
People take out lawsuit loans to cover
essential bills like medical bills, mortgage, and the cost of living. The loans
are particularly popular when an injury resulted in a significant loss of
Can I Get a Lawsuit Loan?
Potentially. Lenders look for winnable cases
with significant settlements when determining who is eligible for a loan.
Why? Because most lenders only ask you to pay
back the loan if you settle. If you lose your case or receive a substantially
smaller settlement, you don’t pay the loan back.
Reputable lenders will work with your attorney
to learn more about your case and make a decision. Your attorney will need to
agree to cooperate (not all attorneys will), and the process can take weeks
from the time of application.
How Much Do Lawsuit Loans Cost?
When you borrow from lawsuit funding
companies, you will not only pay back the principal but other fees and
First, a lender may ask you for an application
fee to consider the case because a significant amount of work goes into the
review. Paying a fee doesn’t guarantee a loan offer.
Second, you need to consider the interest
applied to your loan. Because lawsuit loans aren’t financial products, they
aren’t subject to the same regulations as personal loans. The interest rate is
also known as a funding fee and can range from 27 percent to 60 percent per year.
The cost of the funding fee can double the
repayment amount your settlement is still one to two years away.
The Bottom Line on Lawsuit Loans
A lawsuit loan is a lifeline if you are
waiting on a settlement, but your bills were due yesterday. However, the fees
mean you should enter into them with both eyes open.
Be sure to consult your attorney about lawsuit
loans before applying. Not only will your attorney know the best law lawsuit
loan companies, but you ultimately need them to cooperate with the lender you
Are you waiting on the results of your
lawsuit? Keep browsing our blog for more great legal content.
The post I Have a Case but I Have No Money: Can I Get a Lawsuit Loan? appeared first on Bitter Empire.