Are you preparing for an upcoming lawsuit? The natural first step is to find yourself a lawyer. Someone who is going to do all the hard work for you and get you the outcome you’re hoping for.
But in your initial discussions with your attorney, you’ll find that progressing with a lawsuit isn’t cheap. In fact, it’s quite a lengthy process that can cost thousands of dollars, the longer it lasts. You’ll also need to cover many of your lawyer’s costs so they can do thorough investigations and collect the necessary information to help win the case.
If you’re injured or out of work, coming up with the funding can be challenging. Fortunately, there are some ways to get the cash that you need to be able to pay for all of the costs involved. Here are just a few ideas to help you get the money you need.
1) Personal Loan
The most obvious solution to funding a lawsuit is to head to the bank and get yourself a personal loan. You’ll want to speak to your lawyer first before you see a lender so that you ask for the correct amount of money.
You will need a good credit score, and there may be some extra requirements that come with borrowing from certain institutions. It’s important you understand the repayment frequency and the interest rates. If you can afford to make these payments regularly, then this option might be the right one for you at this time.
2) Home Equity Loan
This option is risky, but it can provide you with enough funding to see you through the court proceedings. A home equity loan is exactly the same as a second mortgage.
It’s normally for a fixed amount and interest rate. You’ll also have a deadline of when you have to pay this loan back to the bank.
Payments are normally higher due to the increased interest rate. You should consider all of your other alternatives first because you could end up in significant debt due to this loan if you lose the lawsuit
3) Accessing 401K
According to federal law, workers are able to borrow up to 50% of the amount in their account up to a maximum of $50,000. However, many financial advisors will deter you from dipping into this pool of money.
There are some extra terms and conditions to consider too. You will have to pay back the loan within five years, and there is an interest rate applied to the amount you’re borrowing. It can also impact any retirement plans you had, so you may need to prepare yourself that you might have to be in the workforce for a little longer.
4) Credit Card Cash Advance
Borrowing cash from a credit card is a common method of getting money quickly, but it’s an expensive way as well. You’ll need to pay a transaction fee, which can be up to 5% of the amount you’re borrowing. However, you’ll also pay interest on the withdrawal as well.
These rates on credit cards are significantly higher compared to other types of loans. Some can get as high as 25% for some carriers. You should explore other options first or make sure that you can afford all of the fees and charges before taking money off of your card.
5) Borrowing From a Friend or Relative
If you’re struggling to get a loan due to a poor credit score or don’t have enough money in your 401K, then it might be time to turn to friends or family. They may be able to help in several different ways, even if it’s not by handing over the cash that you need to fund the lawsuit.
Friends and family may be able to co-sign a loan or borrow money on their own to give to you. There is a saying that money and friends don’t mix, so make sure you have a good relationship with anyone you’re taking cash from so there’s no awkwardness.
6) Selling Your Items
If your house feels a little overcrowded, then another way to come up with some money is to take inventory of your stuff and sell it. There are several platforms online where you can advertise items that you don’t want anymore, like furniture, movies, and even your car.
But if your objects have sentimental value, then you can always take them to a pawn shop to hold on to until the lawsuit is settled. You’ll need to make sure you go to a trustworthy store as you don’t want to return to find they found a buyer for one of your items.
7) Pre-Settlement Funding Company
Perhaps one of the best ways to get some money for a lawsuit is to get a pending lawsuit loan. Pre-settlement funding covers several types of litigations, including car accidents, medical malpractice, and workplace incidents.
The best is that there is no credit check and no payments until after you win your case. Approval for loans is often within 24 hours, and there no hidden fees that will sting you down the track.
What’s the Best Way to Fund a Lawsuit?
There are several ways to secure funding for a lawsuit, however many of them can come with high-interest rates or implications that can affect you for the rest of your life. A pre-settlement funding loan is specifically designed to help victims get the money they need to get the entitlements they deserve.
Don’t pay high interest for the rest of your life or ruin your credit for the sake of a loan. Apply for a pre-settlement loan with us and we’ll help you fund your lawsuit today.