What Is Funding Circle? In Funding Circle, business owners who…
Idaho Lawsuit Loans[flexy_breadcrumb]
Idaho Lawsuit Loans
You are currently pursuing a case and there’s a good chance of winning it. The only problem is you are running out of money quickly. What if you could find a lender who would provide a loan now that could be repaid once you win the case? That’s where a lawsuit lender comes into the picture.
Like most types of lending services, there are myths about how these types of loans work. Before you make up your mind one way or the other about a lawsuit loan, learn the truth about these six myths. Doing so will help you make the choice that’s right for you.
It’s Hard to Be Approved for a Lawsuit Loan
The fact is that being approved for a lawsuit loan is simpler than applying for many other types of loans. Many of the factors that traditional lenders consider, such as your credit rating and the amount of money you make each month, are not very important to a lender who specializes in these types of loans.
What does matter is the specifics of your pending case. The lender will want to communicate with your attorney and review it thoroughly before making a decision about the loan application. Assuming that you do have a strong case and the odds of receiving a judgment in your favor or obtaining a reasonable settlement from the responsible party, the lender is likely to approve your application and make arrangements to transfer the funds to your bank account.
There are All Sorts of Fees That You Have to Pay Out of Pocket
While there are interest charges and other fees that may apply, you don’t pay anything out of pocket. Instead, those fees are added to the balance of the loan. Once you win the case or it’s settled out of court, the lender will expect payment. It’s not unusual for the court or the defendant to forward the money to your attorney who then ensures the lender is paid in full. If any funds are left after the lawyer fees and the loan are settled in full, the balance is sent to you.
Personal Injury is the Only Type of Suit That Makes You Eligible
There are a number of lawsuits that lenders will consider eligible for a loan. For example, you could qualify if your case has to do with wrongful termination or a civil rights violation. In the event you are a victim of medical malpractice or your property is damaged due to negligence by a contractor or a member of the construction team, your suit may make you eligible for a lawsuit loan.
You Will Be Approved for the Same Amount You are Seeking in the Lawsuit
Lenders offering these types of loans typically approve applications for a maximum percentage of the amount of damages claimed in the suit. For example, you may be seeking damages of $150,000.00 in the suit and your attorney is quite sure of receiving that amount. If the lender agrees and has a cap of 10% on loan amounts, you would be approved for a loan of up to $15,000.00.
There are Restrictions on How You Use the Loan Funds
Lawsuit lenders are not interested in how you use the money. That’s because the loans do not require any type of collateral or other security, other than an agreement to repay the balance out of any settlement or award that you receive. You can feel free to use the money to cover medical costs, take care of the monthly bills, or any other use that you deem necessary.
Lose the Case and You’ll Be in Debt Forever
One key factor that sets lawsuit loans apart from other types of financing is that the repayment is contingent on whether or not you receive anything from the lawsuit. If the defendant does not settle and the judge does not rule in your favor, you owe the lender nothing. Far from leaving you with a debt that could take years to pay off, the balance of the loan is written off and you will never hear from the lender again.
Would a lawsuit loan be the right move for you? Take a closer look at how the loan works, what you would like to do with the money, and how strong your case happens to be. If you are approved, the money will go a long way toward keeping you financially solvent and may even provide the resources needed to help you recover from whatever prompted the suit in the first place.