Maryland Lawsuit Funding[flexy_breadcrumb]
Due to the complex nature of our legal system, it can take months and sometimes years for cases to settle. Throughout this period as you fight your legal battles, you have to keep up with your financial obligations. Just because you are no longer working doesn’t mean that your bills will stop coming. You have to continue paying your mortgage or rent, buying food and even catering for your transport.
Lawsuits are known to drain families financially. Unfortunately, most of the victims lack enough savings to sustain them until their case is settled. Others lack collateral and good credit rating required to apply for a loan from the traditional lenders. In such circumstances, one of the places that you can look to for support is the lawsuit funding companies.
What is legal funding?
Pre-settlement funding is a relatively new financing option that enables plaintiffs involved in lawsuits to access cash to meet their financial obligations as they seek justice. There are many terms used to describe legal funding, and they include lawsuit loans, third-party financing, pre-settlement funding, and litigation funding.
A lawsuit funding company provides an advance to their cash-strapped clients in exchange for a portion of their settlement. Such transactions are considered non-recourse, which means that if the client loses the case, the lender cannot seize the client’s assets to recover their money.
Which cases qualify for lawsuit funding?
You can apply for a lawsuit funding if you have already filed a lawsuit and you have an attorney handling your case. Considering the risky nature of this business, most of the lawsuit funding companies are a little strict on which cases they consider. The lender evaluates the merits of each case to determine whether it stands a chance to win and the amount of compensation that you can get. Cases that are considered by many lawsuit funding companies include mass tort, wrongful death and personal injuries. Other cases that are easily considered include premises liability, slip and fall lawsuits, medical malpractice cases, dog bites, and pharmaceutical and drug injury lawsuits.
How to apply for Maryland lawsuit loans
Applying for lawsuit loans is easy and straightforward. The lender will ask for the relevant documentation regarding your lawsuit. Once they have all the documents, the underwriters will evaluate your case to determine whether or not to give you a cash advance. If your application is approved, the amount that you get will depend on various factors such as the strength of your case and the time it will take to resolve.
Before approving your request, the lending company will contact your attorney to request the relevant documentation. The lender may also conduct background checks to evaluate the qualification and experience of your attorney in handling lawsuits. Some lenders may also be interested in your past criminal record or any bankruptcy proceedings that you may have. Anything that may interfere with the outcome of your case can prompt the lender to turn down your application.
Things to consider before applying for lawsuit loans
Due to the high demand for lawsuit loans, a lot of companies have cropped from all corners of the country as they seek to meet the ever-increasing demand. Unfortunately, most of the loan sharks out there do not have your interests in their hearts. Instead, they will seize every opportunity to maximise their profits from your misfortunes.
So, when applying for lawsuit loans, it is essential to review several companies and learn about what they have to offer. Make sure you learn about their interest rates and other fees before signing the loan contract. Lawsuit loans can be a lifesaver especially when you get them from a reputable company. You can also end with nothing upon settlement if you choose a bad deal.