Maine Lawsuit Funding
It’s true that lenders of lawsuit loans do not pay much if any attention to your credit score or your current income level. They are more concerned about the type of suit you are pursuing and the chances that you will win. Even so, it’s not guaranteed that you will be approved. You must meet all of the lender’s requirements in order to receive an offer.
Some people think that it’s possible to receive an advance or loan that equals the amount they are seeking in the suit. That’s not the case. The lender will evaluate the specifics of your case and determine if there is a reasonable chance of success. At that point, you will receive an offer that equals a percentage of the monetary damages you are seeking in the suit. It’s up to you to determine if the amount offered will be enough to get you through until the legal matter is resolved.
Like any type of lending or funding arrangement, lawsuit loans do require paying some type of interest on the money you are advanced. The rate of interest is commonly applied to the balance on a monthly basis. This may not seem like a big deal if you have reason to think the suit will be resolved within a year or less. If you expect it to take longer, do consider how much interest you will end up paying once you do receive the damages. The lawsuit loan is still likely to be your most practical solution to receiving money now, but it helps if you can project how much you will ultimately repay the lender.
You’ve likely taken out bank and other loans that required some sort of up-front payment of fees or charges. You are not likely to encounter this with a lender who offers lawsuit loans. You’ll know what, if any, fees apply, how much they happen to be, and receive confirmation that they will be bundled into the total amount that you repay.
The lender chooses to approve your application because there is a good chance that the suit will be successful. That means you will either arrive at an equitable settlement with the defendant or the court will award the damages you are seeking. Until the case is resolved, you do not have to worry about making any payments on the loan.
Assuming you do win the suit or arrive at a settlement, you have a certain amount of time to repay the lender. That time frame is determined based on the terms of the settlement or the judge’s verdict. For example, if the judge gives the defendant two months to pay the damages in full, the lender will not expect payment until shortly after that two-month window is complete.
Lenders of lawsuit loans take on a certain amount of risk when they approve applications. That’s because the terms state that debtors do not have to repay the loans if they do not win their cases. Should you lose your case, there is no obligation on your part to repay the advance.