Lawsuit loans or pre-settlement funding is a way through which you can get cash when involves in a case with personal injury. The cash you receive is against the settlement to repay the principal with a guaranteed return, provided the case settles in your favor.
This can be of significant help to those who are amidst a lawsuit, but sadly, not many people are aware of this process. However, this is not a simple process, and there are many aspects that you need to keep a check on before applying for a lawsuit loan like this.
The Types of Funding
The major companies that help to provide lawsuit loans usually work under two categories in giving loans. These are pre-settlement and post-settlement funding. Pre-settlement funding, as the name suggests, is a loan offered to you before your case has settled and before you know for sure what the value that will be awarded to you at settlement.
These are the more common types of lawsuit funding and have a higher rate of interest in comparison to post settlement loans. The reason why pre-settlement loans have much higher rates of interest is the higher degree of risk involved. On the other hand, post settlement loans are offered after your case has been settled in court, but you have not received the money yet.
As per bakerstreetfunding.com these loans have low rates of interest because they comprise low levels of risk; however, these are not completely risk-free because there is still a possibility that the defendant may not pay and default the case.
The Need for Legal Loans
Many people are still not aware of the usefulness of lawsuit loans. For most people who have been at the receiving end from a case of personal injury generally have a hard time trying to meet ends meet. Facing fatalities like this can genuinely shake you to the core, and it is with the help of these legal loans that you will be able to get the finances that you need to cover the expenses of your day to day lives.
Whenever you have a lawsuit, you can apply for a legal loan; it, of course, is a matter of scrutiny that will either make you eligible or not for the actual credit. However, it is free of cost in most places to get a consultation, and it is highly recommended that you take the chance. What happens after consultation is that the merits of your case are strongly determined and if your case seems strong, in your favor, and with a high possibility of winning the lawsuit, you are provided with the cash almost immediately.
You have to return the money at a fixed rate of interest after your case settles. However, your credit history or job profile is not undertaken into consideration when making sure if you are eligible for the loan. These are nonrecourse, and you only have to pay back the loan if you win your case; otherwise, you do not.
Analysis of Your Case
As already mentioned, whether you get a legal loan or not, it depends entirely on how strong your case is. In this stage, your case is under constant scrutiny to underwrite a settlement advance. Three factors are put to work during this analysis, which are:
- Injury: This factor is most prevalent in cases of personal injury. Reports from the ambulance and emergency rooms are taken into consideration so that the underwriters completely understand the type and extent of the injury. The medical files are also of extreme importance here. Legal companies can also pay for your surgery and medical bills that have occurred as a result of the accident.
- Fault: This is one of the most critical factors that are taken into consideration. The underwriters here try to get a full understanding of your case and all the events surrounding it. Police reports and other supporting documents are taken into an in-depth analysis to make sure that the blame is on the defendant.
- Insurance: At this point, the underwriter simply makes sure that the defendant was covered by some protection so that they can pay for the loss or injury they have caused you.
Benefits of a Legal Loan
The market for companies offering pre-settlement funding or lawsuit loans has become very competitive as more and more companies join the market. This has made the entire process much easier for you because these companies are continually trying to prove their worth in the market. As being on the receiving end of a lawsuit loan, you can use this to your advantage. The benefits of applying for and opting for a legal loan are as follows:
- A company offering you with lawsuit loan can help you with several programs that will provide the aid and support that you require at the time of need.
- Many a time, people accept the meager amount as settlements because they are afraid that they will lose out on more money with time or when they are desperately in need of the cash. When you have a pre-settlement loan company helping you, you do not need to settle for anything less than what you deserve, because you have sufficient cash on hand at the point to fight for your rights.
- These companies work with retired and former attorneys who are experienced enough to take your case and analyze it quickly and hence the money you need can be provided to you much faster.
- Because of the increasingly competitive market, you can check more than one company in order to find the best value or compensation that is being provided to you quickly or not.
- These companies are exceptionally communicated and will keep you updated about your case as long as you work with them.
Reap the benefits of a lawsuit loan now and make the most out of your settlement. It’s simple; if you don’t win, you don’t have to pay anything back to the lawsuit loan company!