Sunday, June 13, 2010
Lawsuit Settlement Loans Provide Financial Help to Plaintiffs
Lawsuit Loans Growing in Popularity
Lawsuit settlement loans are growing in popularity as a way to help fund lawsuits. Lawsuits can be very expensive for plaintiffs, and can take a long time to reach a settlement. Legal fees mount over time as the lawsuit moves forward. Funds are typically needed to help plaintiff’s pay legal fees and to help plaintiffs stay the course financially and while keeping the lawsuit alive.
Lawsuit Settlement Funding
With a lawsuit settlement loan a funder will review the case in question and if the case looks sound and winnable, the funder will provide funds upfront to the plaintiff. Some funders ask for a loan repayment as well as a percentage of the eventual settlement award. However, this is not as popular as it once was.
Most lawsuit settlement loans will not collect any money if the plaintiff loses the case. This unknown outcome of a case makes loans risky for the funder. It is typical that a lawsuit settlement funder will carefully review the case in question and determine the plaintiff’s potential for settlement before a loan is granted.
Type of Lawsuits?
Lawsuit settlement loans are provided for a wide variety of lawsuits. The most common types of cases to receive funding are auto accidents, premise liability, medical malpractice, product liability, commercial litigation, railroad claims, personal injury, and wrongful death.
When a plaintiff works with a settlement funding company, the company will fully review the case and evaluate the strength and merits of the case. The funder must see a probably favorable outcome to enter into an agreement with the plaintiff. Most loans are reviewed quickly and a settlement loan agreement is written outlining all the details of the loan and the repayment requirements.
Most reputable lawsuit settlement loan funders, like Alliance Claim Funding, will review the entire situation, including the financial needs of the plaintiff. Loans are created based on those needs so the plaintiff can keep the case alive and not be forced to drop the case, or settle too soon.
Strength of Your Case
Since these loans are granted solely on the strength of the case, they do not require credit checks, or typical bank requirements for funding. The main criteria will always be the strength of the case, and based on the amount expected when the case is settled in favor of the plaintiff.