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A Lawsuit Loan is a type of a presettlement funding, which is a way for you to get money before your case is resolved. Unlike conventional loans, an advance against a pending lawsuit requires no repayment if the plaintiff does not receive a cash settlement or award upon resolution of their lawsuit. Typically, lawsuit loans are used to help plaintiffs pay for their bills and other expenses, especially if their ability to work has been affected by an accident or injury.
Advantages of a lawsuit loan
• All lawsuit loans are non-recourse, which means you pay only if you win. If you lose your case, you don't need to repay anything to the company.
• Lawsuit loans, often called lawsuit advances, can help an injury victim reduce their financial burden and help pay for necessary medical treatment not covered by insurance.
• There are no credit checks or employment requirements with lawsuit cash advances. You don't even need a bank account.
• A lawsuit loan can be processed in as little as 48 hours.
• Unlike conventional loans and credit cards, there are no monthly payments. The attorney will repay the advance directly from the settlement proceeds and only if you win.
• Also unlike conventional loans and credit cards, a lawsuit advances does not have a fixed term and does not need to be repaid until the case is resolved.
• A lawsuit loan can help you pay for many of your expenses, reducing your need to accept low ball offers, and increasing your bargaining power.
Disadvantages of a lawsuit loan
• A lawsuit advance is more expensive than a conventional bank loan. If the plaintiff wins their case, he or she will have to pay a premium for the advance, which is typically higher than interest for a bank loan.
The lawsuit loan is intended to help individuals who need additional cash to pay for their basic necessities, such as rent, mortgage, insurance, medical procedures, groceries, and emergency expenses.
Often when a person is involved in a personal injury accident they will find themselves unable to work and slowly running out of funds. Although at some point the person may receive an insurance settlement that will ultimately compensate them for the injuries they have received, the typical personal injury accident victim has to often figure out what to do until they receive this settlement. One possibility is a “lawsuit loan” otherwise known as “lawsuit financing,” “lawsuit funding” or a “lawsuit cash advance.”
A “lawsuit loan” or “lawsuit cash advance” is a cash advance made against the proceeds a personal injury accident victim will receive from an insurance settlement or personal injury lawsuit. Technically the cash advance is not a loan because the proceeds never have to be paid back if the accident victim receives no settlement.
“Lawsuit loans” or “lawsuit cash advances” will often be provided in cases that involve personal injury such as motor vehicle accidents, medical malpractice claims, slip and fall accidents, product liability claims, animal bite claims and worker's compensation injuries where the victim is represented by an attorney.
A person will typically apply for a “lawsuit loan” or “lawsuit cash advance” by contacting a company such as Lawsuit Cash Advance, LLC that provides this type of specialty funding. The person will be expected to provide information relevant to their case in order to be evaluated as a possible recipient of a “lawsuit loan” or “lawsuit cash advance.” Initially they and their attorney will have to submit a questionnaire, and this request for information will be followed up by a request for any additional documentation relevant to the person's personal injury case such as police reports, incident reports, doctors' bills, medical records and other legal documents.
Once the person has provided all the required paperwork necessary to evaluate their case, a lawsuit funding company such as Lawsuit Cash Advance, LLC will then evaluate the accident victim's case in the same way any underwriter would. An assessment will have to be made as to the likelihood that funds advanced will ultimately be paid back and to the amount the personal injury accident victim can actually be advanced.
Once the personal injury accident victim's case has been evaluated, if they qualify they will then be issued a “lawsuit loan” or “lawsuit cash advance.” Funds can usually be provided within 24 hours of receipt and approval of the application and all supporting documentation.