Thursday, June 10, 2010
Settlement Funding Loans Offer Cash Advance funding to Plaintiffs
Funding Your Lawsuit
When a lawsuit is filed and the proceedings and timeline are set it’s time to start thinking about how you’ll fund your lawsuit. Many lawsuits are filed against large companies or insurance agencies with deep pockets to fight your lawsuit. Lawsuits can typically drag out for long periods of time, even years, until a settlement or verdict is reached. During this time, plaintiffs can have a difficult time staying financially solvent as the mounting legal bills and costs for a healthy cost of living become difficult to maintain.
Taking Out a Settlement Loan
One good option for plaintiffs is to consider taking out a settlement funding loan to ease the financial burdens inherent in filing a lawsuit. Lawsuit settlement funding is not provided by a bank or regular loan company. These types of funds are provided by a litigation finance company whose role is only to fund lawsuits for plaintiffs.
Funds for Large Lawsuits
Settlement loan funding is not usually for those who have filed a small lawsuit. These funds are usually sought when dealing with a large lawsuit that takes a long time to settle. Many times those plaintiffs who have filed a suit are out of work due to their injuries, underemployed, have high medical expenses, and various other expenses related to reason for the lawsuit. In addition, legal fees continue to mount as time passes.
Finding the Right Company
Alliance Claim Funding is a reputable settlement loan funding company. Your attorney can sometimes recommend several reputable lawsuit settlement funding companies. You’ll want to do your research and find the company that will give you a fair agreement with reasonable costs to borrow the money.
How Does it Work?
Settlement loan companies typically advance an average of 10% of the expected settlement award. While there are fees involved with this type of loan, this funding can make a huge difference in a plaintiff’s ability to continue the lawsuit. Many plaintiffs are forced to pull out early or to settle their lawsuit for far less than the lawsuit is worth.
How to Get a Cash Advance?
The litigation finance company will review your lawsuit with your attorney to determine if the lawsuit is worth the risk. Unlike most loans we take out during our life, there is no need for credit checks or collateral as this loan is based only on the merits of your lawsuit and the perceived settlement amount. Also, unlike a regular bank loan there are no monthly payments to worry about. All payments to repay the loan amount are done at the time the lawsuit is settled.