Lawsuit Loans: Are They Right For You?

By: Dr. Tom Rhudy

Lawsuit loans are non-recourse (i.e., if you don't win, you pay nothing back for the loan) cash advances. They are available to individuals who sustain losses (e.g., personal injury, wrongful termination, etc.), and who agree to repay the advance once the claim has been resolved in their favor.
Lenders incur risks that are inherent in all such loans. Diligent analysis is required prior to offering an advance. An assessment of the claim's value must be undertaken upon the vendor's receipt of your application. There are numerous issues to consider prior to both acquiring and providing such a loan.
How Do They Work?
Individuals who sustain losses contact either a lender or broker who offers lawsuit loans. The lender stays in close touch with the lawyer, and obtains requisite information about the case.
The lender will determine what, if any, loan will be made, relying on the information gathered, by estimating the costs of settlement, and will then offer that amount to the plaintiff (i..e, the one filing the complaint). If the case goes to court, the defendant (i.e., the one against whom the complaint is made), must pay fees related to court costs and, in many cases, attorney's fees.
There is no obligation to repay the advance if you lose with a non-recourse loan.
When assessing costs related to making such an advance, both the nature of the case and the lender, as well as many other factors, must be taken into consideration. It is not uncommon for these advances to range from $500 - $200,000.
When Should You Consider Lawsuit Loans?
Litigation processes can take years to settle. An injured person customarily must pay all of the officially authorized expenses connected with the litigation while the case is pending. If you are unable to work, will you be able to wait till the case is settled?
Lawsuit loans often give you the ability to pay your bills and maintain your credit-worthiness in such circumstances.
Lawsuit loans should be considered carefully. If other funding-alternatives are available, they may prove to be your solution.
This funding obviously comes with costs. When opting for lawsuit loans, choose wisely!

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Learn more about Lawsuit Loans. Stop by Dr. Rhudy's site where you can find out all about Settlement Loans and what they can do for you.

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