Tennessee Lawsuit Funding[flexy_breadcrumb]
Lawsuit Loans are Known By Several Names
You will find that different lenders describe lawsuit loans in more than one way. They are sometimes referred to as lawsuit cash advances, legal financing, litigation financing or loans, plaintiff cash advances, or pre-settlement loans. Whatever the name uses, the result is the same: you are approved to receive funds that help you cover expenses while your suit is pending.
Many Different Circumstances Make You Eligible for Lawsuit Loans
When most people think of obtaining a loan based on a pending lawsuit, the first thing that comes to mind is some type of physical injury. That’s only one example of circumstances that would motivate a lender to consider your application. Damages arising from medical malpractice often fit the criteria for this type of lending arrangement.
The same is true for cases involving discrimination, product liability, construction failures, and even civil rights violations. Before assuming your circumstances would not be considered acceptable by the lender, take a look at the types of events that are eligible. There’s an excellent chance that one or more of those events happen to relate to your case.
Most Lenders Don’t Care About Your Credit Score
If you go to a bank or similar institution seeking a loan, a lot of attention is given to your credit score and the amount of income you currently generate per month. Getting approved can be difficult when you are out of work due to an accident caused by another party. If your score was not that great in the first place, the chances of being approved are even more remote.
Lenders offering lawsuit loans are not that concerned with your credit score. The main focus is on the merits of your pending case. Assuming the lender determines that you have a reasonable chance of winning, you are likely to be approved. That’s because the lender will be reimbursed from the award or settlement that you eventually receive. Thanks to that part of the loan terms and conditions, your ability to repay out of your salary or wages is not a factor.
The Amount You Can Borrow is Usually a Percentage of the Projected Award or Settlement
Some people think that they can borrow up to the amount requested in the lawsuit. That’s not the case. If your application is approved, you will be offered an amount that equals a maximum percentage of the funds you are seeking via the lawsuit. Keep in mind that you can accept that offer as is, or you can request a lesser amount from the lender.
Nothing is Due Until You Win Your Case or Receive a Settlement
Unlike other types of financing, you do not have to make any payments to the lender as long as your suit is pending. The amount you borrow plus any applicable interest and fees are paid out of the funds awarded by the court or that are obtained in a settlement. It’s not unusual for those funds to be forwarded to your legal counsel who then settles the loan with the lender, collects his or her fees, and then remits the remaining balance to you. In this scenario, you never have to worry about the process of paying off the loan; it’s done for you by your legal counsel.
You Don’t Have to Repay the Loan If You Lose the Case
If there’s one factor that sets a lawsuit loan apart from any other type of lending arrangement, it’s the fact that you pay nothing if you lose the case. Remember that the lender agreed to provide the funding based on the perception that your case had a good chance of being settled or winning in a court of law. Lenders offering this type of loan understand the risks and accept the court’s decision even if it is not in your favor.
Would a lawsuit loan be helpful in your situation? If the answer is yes, submit your application today. Provide authorization for the lender to seek information from your attorney. Once everything is reviewed, you will have an answer in a short amount of time.