Lawsuit Loans Help Your Lawsuit – Here’s How
Engaging in a lawsuit can be both emotionally and financially draining. For plaintiffs facing mounting bills and daily expenses, lawsuit loans offer a financial bridge to ease the pressure. These loans can provide significant benefits, particularly when used strategically. In this post, we explore how lawsuit loans help your lawsuit and why they are worth considering.
Reduces Financial Pressure During Litigation
One of the most immediate ways lawsuit loans help your lawsuit is by alleviating the financial stress of everyday expenses. When you’re waiting for your case to settle, bills like rent, utilities, or medical costs don’t stop. A lawsuit loan gives you the financial breathing room to focus on your case rather than worrying about how to make ends meet.
Lawsuit Loan Basics
Lawsuit loans, also known as legal funding or pre-settlement advances are financial transactions where plaintiffs sell a portion of their recovery ahead of time. They are used most often in civil litigation where legal system delays result in many months or even years to elapse before plaintiffs receive compensation.
Unique Lawsuit Loan Structure
Lawsuit loans are structured as a sale of future property rights and as such are not actually loans in the traditional sense. While traditional lending requires repayment (with interest) at some point in the future, lawsuit loan repayment is entirely dependent upon a successful outcome. In other words, if a lawsuit fails, lawsuit loans are not repaid.
According to the terms of most lawsuit loan contracts, repayment must come from the settlement proceeds themselves. Thus, they are often referred to as non-recourse funding – meaning lawsuit lenders have no recourse against plaintiffs personally. Plaintiffs who receive lawsuit funding and later lose their lawsuit are not responsible for repayment.
This structure ensures that plaintiffs aren’t burdened with additional debt if their case doesn’t go as planned, making it a relatively low-risk option for those in need.
Lawsuit Loan Purpose
Lawsuit loans help plaintiffs pay their expenses while their cases matriculate through the legal process. They are often used to pay living or other expenses while cases progress. This way, plaintiffs can resist accepting low-ball settlement offers due to personal financial trouble.
How Lawsuit Loans Help Your Lawsuit
Lawsuit loans benefit plaintiffs with immediate cash flow. However, lawsuit loans can help your lawsuit as well. Below are the top ways lawsuit loans help your lawsuit:
Reduces Financial Pressure During Litigation
One of the most immediate ways lawsuit loans help your lawsuit is by alleviating the financial stress of everyday expenses. When you’re waiting for your case to settle, bills like rent, utilities, or medical costs don’t stop. A lawsuit loan gives you the financial breathing room to focus on your case rather than worrying about how to make ends meet.
Allow Time for a Fair Settlement
Defendants and insurance companies often exploit plaintiffs’ financial hardships by offering low-ball settlements. Lawsuit loans help your lawsuit because you can afford to wait for a settlement that reflects the true value of your claim. This ability to hold out can often lead to a significantly higher payout.
Your legal team may need time to build a compelling case, gather evidence, and negotiate effectively. Lawsuit loans help your lawsuit by ensuring you don’t rush the process out of financial desperation. With less pressure to settle quickly, your attorneys can pursue the best possible outcome for your case.
Cover Case-Related Expenses
In some cases, plaintiffs use lawsuit loans to cover litigation costs, such as expert witnesses, depositions, or court fees. Investing in these elements can strengthen your case, increasing the likelihood of a favorable outcome. By providing the resources you need to present a strong argument, lawsuit loans help your lawsuit directly.
Medical Treatment and Expenses
Lawsuit loans help your lawsuit when used to pay for medical treatment and surgery costs. Accident victims often require extensive medical treatment. Diagnostic testing, surgical intervention, physical therapy, and rehabilitation can be expensive, especially for serious injuries. Some injured plaintiffs compile hundreds of thousands of dollars in medical debt.
Medical costs can be paid with lawsuit loan advances after treatment but also can be paid up-front with programs known as surgery lawsuit loans. Surgical lawsuit funding negotiates an up-front fee for surgery and pays the provider directly. When the case is resolved, the cost for the surgery is repaid. When surgery is not offered under a letter of protection, lawsuit loans can help your lawsuit by paying for necessary surgical procedures at the time of treatment.
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Who Can Benefit Most from Lawsuit Loans?
While there are many lawsuit loan case types, these transactions are particularly helpful for plaintiffs involved in lawsuits such as:
- Personal injury
- Medical malpractice
- Wrongful death
- Employment disputes
This is because the above case types often involve a reduction or elimination of incoming household revenues. Personal injury accidents may prohibit plaintiffs from working as they did before the accident. Likewise, wrongful employment cases can reduce a plaintiff’s income. Lawsuit loans help your lawsuit by helping you with financial support.
Tips for Choosing a Reputable Lawsuit Loan Provider
Reputable lawsuit loan companies are transparent with their terms and conditions. Fortunately, shopping for lawsuits has never been easier. Look for lenders with transparent terms and competitive rates. You can also search a lender’s Better Business Bureau profile for more information.
You can also consult your attorney to make sure your case is a viable case for lawsuit funding solutions. Many attorneys have working relationships with lawsuit lenders. This can aid in the search and offer the most competitive terms available.
Finally, make sure you’re clear on repayment obligations and potential costs. Virtually all you need to know about lawsuit loans is discussed in our lawsuit loan blog articles. If you cannot find the answer you are looking for, simply give us a call or contact us online. A live lawsuit loan representative will be happy to assist you.
Why Choose Fair Rate Funding
You obviously have a choice in who you use for legal funding. We offer:
- Simple and Easy Process – Approval only on the strength of your case.
- Risk – Free Proposition – Only repay if you win your case.
- Rapid Approval and Funding – Approvals often within 24 hrs.
- Up Front Pricing – Absolutely no hidden fees.
Give us a call and learn about your options. We are here to help and are at your service.
Conclusion
For many plaintiffs, lawsuit loans help their lawsuit by providing the financial stability needed to pursue justice without compromising their daily lives. While these loans should be used carefully and as a last resort, they can be a powerful tool to level the playing field against well-funded defendants.
By choosing the right lender and using the funds strategically, lawsuit loans can be an asset in securing a fair and favorable settlement.
Thank you for your interest in Fair Rate Funding.
