What Are Lawsuit Loans And How Does One Benefit From It?
Lawsuit loans can cause confusion to someone who has barely an idea about what it is. The concept will be explained here and benefits will be outlined. This is especially helpful for people who wants to know what is a lawsuit loan and why one will need a lawsuit loan.
What is a lawsuit loan?
First of all, a lawsuit loan is technically not a loan. It is a cash advance which helps tide you over financially while waiting for the results of a lawsuit. A lawsuit or litigation finance company buys a portion or all of your rights to a lawsuit settlement or award in exchange for the cash advance given to you while your case is still pending. Filing a suit or a case can be very time-consuming and expensive, it can also result to lose income as you are also left with medical bills and other unexpected expenses. All of this can drain you financially even before your case is settled of a decision is released. For more information, look up lawsuit settlement funding.
This type of funding can also be referred to as: litigation funding, litigation loan, litigation finance, lawsuit funding, lawsuit settlement funding, lawsuit cash advance, lawsuit finance, legal loan, case loan, plaintiff cash advance, case cash advance, litigant funding, pre-settlement lending, pre-settlement loan, pre-settlement cash advance, et cetera.
Do you need a lawsuit loan?
A lawsuit loan is not a substitute for the lawsuit settlement but more of an aid that helps one stay afloat while the case is still pending decision. A lawsuit financing company usually advances up to 10% of the amount estimated you will receive for settlement.
How do I benefit from getting a lawsuit loan?
There are many advantages in getting a lawsuit loan. Here are the two main benefits of acquiring one.
A lawsuit loan helps you financially while the case is still ongoing. You gain financial assistance in shouldering everyday needs and expenses that may arise while the case is still pending.
A lawsuit loan helps in providing you more time in negotiating a good case settlement. Lawsuit funding will provide your lawyer the resources to retain witnesses that are important in supporting your case. You will be able to maintain the cash flow for your legal team while still waiting for the settlement.
Getting a legal loan has disadvantages, too. Aside from being partly expensive, it may be difficult to a reputable and trustworthy lender. Since lawsuit loans are not like other types of loans which are regulated by the government, it is important to get one from a trusted and reputable company.
Go to http://en.wikipedia.org/wiki/Loan to know about loans in general.