You’re thinking about filing a lawsuit. The only problem is that you don’t have a lot of money. As such, you’re considering taking out a lawsuit loan.
The question is: are lawsuit loans for you? What are the pros and cons of lawsuit loans, anyway? Good question, and one that we’ll answer below.
What Is a Lawsuit Loan?
Sometimes called a pre settlement funding loan, a lawsuit loan is essentially an advance on a legal settlement. If you’re on the verge of winning a settlement, and you need money to keep your lawsuit going, a lawsuit loan can help you to do so.
You’ll, of course, need to pay the loan off at a later date, but, in the meantime, it will help you to win the reward that you truly deserve. Then, once you’ve received your settlement, you can use it to pay off your loan.
The Pros of Lawsuit Loans
Lawsuit loans are beneficial for those who are waiting for a settlement and who are having trouble paying their bills in the meantime. By taking out lawsuit loans, you receive the following benefits.
Provide Immediate Cash Relief
When you’re embroiled in a lawsuit and waiting for a settlement, you might not be able to pay the bills that you need to pay. Sure, the money should be coming soon, but, in the meantime, you’re going more and more into debt.
This is where a lawsuit loan can make a huge difference. A lawsuit loan can provide you cash relief almost immediately, allowing you to cover your bills on short notice.
Give Your Lawyer More Time to Argue Your Case
Because lawsuit loans provide you with immediate cash relief, they ensure that you don’t take any less than you deserve. They give your lawyer the time he or she needs to argue your case to the best of his or her abilities.
If you didn’t have a lawsuit loan, and you had bills to pay, you would be much more apt to take a lowball settlement. Yes, doing this would still cure your financial woes, but it would also award you much less than you’re actually entitled to.
Think of a lawsuit loan as an incentive to keep going. It puts you on a firm financial footing, ensuring that you don’t do anything desperate.
Have No Credit Limitations
Most loans require you to meet a sufficient threshold of credit. Lawsuit loans, on the other hand, don’t take credit into account at all. You can get a lawsuit loan even if your credit is awful.
Instead, you must show that you have a good case. If you can prove that you’re likely to win your case, you’ll likely be given a lawsuit loan.
Don’t Require Payment Until You’ve Won
Another benefit of lawsuit loans is that they don’t require you to pay them back until you’ve won your settlement. In other words, they don’t do anything to increase your financial burden.
Once you have won your settlement, you can pay your loan back slowly over time. This enables you to prioritize more pressing bills in the short-term.
The Cons of Lawsuit Loans
While lawsuit loans can be hugely beneficial, they’re not without their downsides. These downsides are as follows.
Require You to Pay Interest
Be sure, lawsuit loans aren’t free. Like all loans, they come with interest and that interest needs to be paid back along with the principal.
For this reason, when taking out a lawsuit loan, you should never take out more money than what is actually necessary. Assess your situation, add up the bills that you need to pay, figure out how long it will be before you get your settlement, and make an accurate estimate. The less money you take out, the less you’ll have to pay in interest.
Not Everyone Is Eligible for Them
Lawsuit loans are given to those who were injured in an accident and are currently embroiled in a lawsuit. That said, they aren’t just given to anyone. You have to have the right qualifications.
One qualification is that you have a lawyer. Another is that you’re 18 years of age or older. You must also provide sufficient proof that you will, indeed, win your lawsuit.
This could require the submission of everything from photographs to hospital bills to witness statements and more. Once you’ve submitted these things, your lending agent will assess your case and determine whether you’re a viable candidate or not.
Should You Get a Lawsuit Loan?
Now, you might be wondering: should you get a lawsuit loan? That depends on a number of different factors.
Are you having trouble paying your bills? If so, a lawsuit loan is definitely something you should consider.
Will you be receiving a large inheritance soon? If so, you can use a lawsuit loan to tide you over until you do.
Are you looking to prolong the proceedings of your lawsuit? Again, a lawsuit loan can help you, paying not only your lawyer but any other court-related costs that you might be subject to.
Looking for Lawsuit Loans?
What do you think? Is a lawsuit loan right for you? If so and if you’re looking for a lawsuit loan right now, you’re in the right place.
US Claims offers lawsuit loans for all kinds of cases. Charging low fees and quick service, we can get your loan to you within 24 hours.
Apply for a loan now!