Lawsuit Loan

A lawsuit loan is used for a plaintiff who, whether it is medical bills, low income, unemployment or any other reason, cannot afford the costs of a lawsuit in its entirety. Lawsuits can take time to resolve, from months to years. Often plaintiffs do not have the financial ability to wait that long, and need cash right away for pressing bills or just to make ends meet.

A lawsuit loan is a basic form of pre-settlement lawsuit funding that is not actually a loan, but instead an advance fee, or an “investment” by a lending company. That is to say, a lawsuit loan will provide you with the money you need for representation in a court case. Furthermore, many are “no recourse.” This means that if you lose your case, you are not required to pay back the loan. Such is the advantage of this kind of lawsuit funding. Moreover, if the case settles for less than the amount of the cash advance, you have no obligation to the lawsuit funding company beyond your own share of the recovery. Thus, lawsuit loans are often based on your case’s chances of succeeding.

Sometimes there is no other option but to obtain a lawsuit loan. Personal injury can cause financial loss to the point of being incapable of paying for an attorney to represent you in a lawsuit. While lawsuit loans are useful and can bring you out of economic distress, it is a good idea to involve your attorney in the process of getting a lawsuit loan. Your attorney will help you find a lawsuit-funding company which will offer the best possible terms and can also review your contract with the lawsuit funding company before you sign it.

There are a few pre-qualifications to obtaining a lawsuit loan, varying with different lawsuit-funding companies. Generally, to receive a loan, you must have an active claim or lawsuit, you must have an attorney representing you, and you must have no criminal record. Usually, if you meet these criteria, and you’ve exhausted all other financial resources while awaiting a fair settlement, you will be eligible to apply for a lawsuit loan.