Thursday, June 3, 2010

What is a Lawsuit Settlement Loan?

A lawsuit settlement loan is an upfront advance of funds from a pending lawsuit. The amount advanced is usually an amount that is less than the expected amount from a pending lawsuit.  The lawsuit settlement amount of a loan is typically less than 10%.  Lawsuit settlement loans are very different than typical bank loans as they do not require a credit check, an income amount, or a statement of employment history.

Not a Traditional Loan

Lawsuit settlement loans are not like a typical loan you might receive from a bank. A lawsuit settlement loan is based on your pending lawsuit. If your lawsuit does not come out in your favor, the loan does not have to be repaid.  So, in order to qualify for a lawsuit settlement loan your case should be strong and winnable.

Can Lawyers Loan Money?

No. Lawyers are prevented from lending any money to clients. The American Bar Association has strict rules against such funding from lawyers to clients. The rules were devised to prevent any kind of conflict of interest that would change the legal advice from your attorney.

Who Gives Lawsuit Settlement Loans?

Alliance Claim Funding is a trusted, respected firm offering lawsuit settlement loans. When looking for a loan it is best to do research and look at quality companies who provide this service.

Does My Case Qualify for a Loan?

A wide variety of cases are usually eligible for a settlement loan. However, it is important as you contact Alliance Claim Funding to request a review of your case. 

Are There Any Up Front Costs?

It depends on which settlement loan provider you’re dealing with.  However, most reputable settlement loan providers do not charge any fees upfront or during the application process. You might have some legal fees as your lawyer will likely need to spend some billable time dealing with the loan provider to review your case.

How is my loan repaid?

How your loan is repaid may vary with different loan providers.  You should ask each potential funder how they expect the loan to be repaid.  There is a written legal agreement drawn up between you and the funding source that should detail exactly when and how the monies are to be repaid.  Your attorney will help advise you on this agreement and the details of the loan agreement.

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