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Talk to anyone who has undergone a litigation process. Three things will become apparent pretty quickly. The process can be time-consuming and very stressful. The third is the cost implication. Litigation expenses refer to the amount of money that will go into the lawsuit. These include attorney fees, filing, travel, discovery, preparation, and more.
The type of case will have a significant impact on the cost. Attorney fees can range anywhere from $1000 per hour. Filing fees above $500, and so on. A simple lawsuit can cause a $10,000 dent in your bank account.
Now here is where it gets tricky. Unless you have a good source of never-ending funds, the expenses can eat up your available cash in a very short time. The second point is life, outside of the courtroom, must continue as usual. That means bills will continue to pile up as usual. It further adds to the financial difficulties that you will be facing.
We have a fantastic solution to help navigate during this tough period. And, it comes in the form of litigation or lawsuit funding.
Lawsuit Funding: What Is It?
Lawsuit funding is a cash advance that may or may not be a loan. In the former, a lender gives you money on the basis of a standard loan. That means, from the outset, you know the interest rate, payment period, and monthly loan balances you must pay.
The second, which should be of most interest, is the cash advance that is not a loan. Ok, this next part will sound a little bit like a contradiction. Pre-settlement loans are a cash advance a lender will give you. You may also find references to them as lawsuit loans. The confusion will come from the use of the word loan, but we will explain.
A lender will give you a cash advance, and they will get their money back after the settlement of your case. Now here is where it gets interesting. The lender gets nothing if you lose the case.
The cash advances can be a lifesaver during the litigation period. You can avoid falling behind on your daily financial obligations. And, since it is technically not a loan, it will not impact your credit score.
The lender recovers their cash as a lump sum from the settlement fee. It does not confine you to the monthly payments like standard loans that will appear in your credit report.
Another advantage of lawsuit funding is the scope of coverage. These include slip and fall lawsuit loans, personal injury loans, and car accident loans.
Others are premise liability, police brutality, FELA lawsuits, and police brutality.
Applying For a Lawsuit Loan
It is easy to apply for a legal lawsuit loan. Please take time to do proper due diligence on the lender. It is critical that you get the cash advance from a reputable lawsuit funding company. You can get a pretty good indication from customer reviews.
The best lenders have a simple application process. It is as easy as:-
- Logging into the online portal
- Filling in your details, including your name and contacts
- Providing basic information about the case
- The lender will also need to know your attorney’s name and contact details. They will need to determine whether your case has merit and the likelihood of a positive outcome.
- Wait for the approval process.
- Same-day lawsuit loans mean the money will be in your account in 24 hours or less.
But wait, don’t split the screen from this article and start filling in a lawsuit loan form on the other tab. You will understand why you need to keep reading to the end.
What to Watch Out For With Pre-Settlement Loans
By now, it is easy to see why pre-settlement loans are so convenient. But, you need to know what to watch out for before applying.
Lenders will charge an upfront fee, which covers processing and case review. Pay close attention to how much the lenders charge. You could end up parting with as much as 40% in fees, which attract interest. A good lender should not take more than 5%.
The lender should give you a transparent cost breakdown. The less reputable ones will hide fees. You will only get to know about them when they bill you after the settlement.
Comparing rates ties in with the point above. Allocate enough time to shop around for the best rates. You will need to collect several quotes to do this. Any lawsuit loan company unwilling to give you a quote is not worth considering.
Avoid lenders who talk about compounding interest. It will make the loan very expensive in the end. Simple interest allows you to keep a larger portion of your settlement after paying the cash advance.
Please have in mind that some lawsuits can take a very long time to settle. That could drive up the cost of the lawsuit loan you receive. Thus the emphasis is on being keen on the details of the loans.
Some lenders play the role of intermediaries or brokers for lending companies. They do provide a valuable service and can make the application process easier. But, do note, that it will drive up the cash advance cost. This is because you will have to factor in their service fee. If possible, go straight to the funding company.
Qualifying For a Loan
Please note not everyone will qualify for the lawsuit loan. The lending company is giving you money based on an outcome they cannot control.
So, in as much as the approval process is quick, don’t doubt that they do a thorough vetting job. That is why you should start by hiring a competent lawyer to handle your litigation.
Lawsuit or litigation funding has many advantages. They do not add to your loan portfolio since the outcome of your case determines whether you will pay. That means your credit score or employment status is of no concern to the lending companies.
Same-day loans mean you get quick cash to bail you out of tough financial times. Work with a competent lawyer to improve the chances of getting the funds. The quality of your case is a critical consideration for the lending companies.
Finally allows us to reiterate one important point. Do proper due diligence on the lenders. Only borrow from reputable companies. The tons of information available online should give you plenty of resources you can use for research.
also read: https://newstimeusa.com/intro-to-criminal-law/