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Settlement Loans: How they Work

A settlement loan can be applied for by anyone that has a settlement case pending in court. There are two types of settlement loans: pre-settlement and post-settlement; the first is given to those who have a legal case that is in process and has not yet reached a verdict. A post-settlement loan is one in which the verdict has been reached but is under appeal. Either way, the settlement loan represents money that is loaned based upon the amount of the settlement that is projected to be granted to the plaintiff. In general, the amount of the loan will be ten percent of the projected payout.

The way the loan works is that an application is filled out, after which, it is reviewed by an attorney to determine the chances of a favorable monetary judgment and the amount that it will be. If the loan is approved, the applicant will receive the money. Once the court case is completed and an award has been granted to the plaintiff, the money will be paid back in full, plus additional fees for the loan. If, for some reason, no money was received by the plaintiff, then they do not have to pay back the loan. The risk is taken by the lender on the calculation that the money will awarded to the plaintiff. These loans are not provided with any requirements for collateral and as such, take the form of a cash advance.

Personal injury cases are the most common for settlement loan approval because most cases involving injury are well-documented and the lawsuits often concern the amount of money that the plaintiff should be awarded and not whether an award should be given at all. These suits include injuries from car accidents, in the workplace, or sustained on private property such as that of a business. There are many possibilities.

There are other types of cases that do not involve an injury that may also qualify for a loan, and an individual can inquire as to whether their case is eligible for a cash advance. Depending on the likelihood of payment, there are many cases that might qualify for a settlement loan and applying is the only way to tell.

Information on Lawsuit Loans

No one really wants to have to deal with lawsuits, but lawsuits can help victims to receive a certain amount of compensation for the pain and suffering that they have to experience due to someone being negligent. The problem is that some cases can go through the courts for years, causing severe financial hardship on the plaintiff while they are waiting for their settlement; for this reason, many people get lawsuit loans to cover their expenses during the legal process.

Lawsuit loans can help someone greatly when they are struggling to stay on top of their finances due to something like an injury. The loans provide a cash advance on future court settlements, which will help plaintiffs to get the money that they need before the actual settlement is completed. Often, these loans are used for medical expenses because many people either do not have insurance or were injured beyond the ability of their coverage to pay. Some people need money for car or mortgage payments and other everyday life bills that must be handled no matter how injured you are. Other people are strained financially by the legal fees of hiring legal counsel. No matter what people need it for, once they receive the loan they are free to do anything that they like with the money.

A lawsuit loan is a form of non-recourse payment, which means that the loan is not due until a settlement has been reached. If a person does not win their case, they do not have to repay the advanced funds or the attorney. The company that provides the loan is taking a calculated risk when they loan you the money and if you don’t win, they have to deal with the loss.

Anyone can see why getting a lawsuit loan is a great idea. We at LightHouse Legal take on all the risk for our clients, so that they can live a comfortable life and not have to worry about when they will see a settlement.