How Do Lawsuit Loans Work?
Are you dealing with an ongoing lawsuit? If you are, you’re no doubt experiencing the stress. Attorney fees, arranging court dates, and more add up quickly.
The longer you wait, the more your bills go up. If you’re worried about running out of cash before you get your day in court, consider lawsuit loans.
Lawsuit loans may be a solution for your situation. These loans are unique – you only pay them back if you win your lawsuit. As you wait for your verdict, they give you access to cash to pay your attorney and bills.
Read on to learn more about how lawsuit loans work.
Lawsuit Loan Options
You’ll want to shop for loans before you get one. You may want to check out the American Legal Finance Association website first. The ALFA promotes ethical standards when it comes to lawsuit loans.
If you have the following cases pending, you may want to consider a lawsuit loan:
- Side effects from pharmaceuticals
- Product liability
- Discrimination or other employment cases
- Slips falls, accidents, or another personal injury case
- An accident or negligence that impacts your ability to work
- Complex litigation such as whistleblower or copyright infringement cases
These types of cases may provide you with a payoff at the end of the process. But retaining an attorney to work on these cases for you may add up.
Bills will begin to pile up, especially if an injury or accident impacted your ability to work.
Get a Loan
Getting a lawsuit loan is not a complex process. The best lawsuit loans will walk you through the process. As you’ll see here, you need to discuss everything with your attorney before you take out a loan.
If your attorney agrees, you’ll need to fill in a form with your lawsuit loan company. Be ready to share your information and your attorney’s information. Also, share what kind of case you’re dealing with.
You’ll also want to decide how much money you will request.
Benefits of Lawsuit Loans
Lawsuit loans are unique when it comes to payback. The funding fee for a lawsuit loan runs at around 2-4% per month. The funding fee costs more, but that’s because the lenders are taking a risk.
You are only responsible for paying back your lawsuit loan if you win your case. If you win your lawsuit or settle, you will pay back the loan using the money you receive. This will only happen after other expenses are taken out, such as your attorney fees.
Other fees that are paid out first include process server fees and court costs. This means if you don’t win your case, you will not repay your loan. The same goes if your settlement is less than you anticipated.
Consider Lawsuit Loans for Your Case
If you’re struggling to make ends meet while also fighting in court, lawsuit loans may be for you. Unlike other loans, you won’t pay this one back unless you win your case. In the meantime, you’ll have money to pay for living and legal costs.
If you found this article helpful, be sure to check out our Legal and Finance sections.