A lawsuit can help you to receive compensation for losses and pain suffered due to someone else’s negligence. But sometimes the case may drag in court for many months or even years. Remember that during this time you will need to dig into your pockets to pay for legal expenses, medical bills, mortgages, household expenses, and several other crucial bills. Pretty soon, you will drain your bank accounts, and you will be in dire need for money. Fortunately, Texas lawsuit loans are here to help.
What are lawsuit loans and how do they work?
A lawsuit loan refers to a cash advance against a judgment or settlement you are expecting from a lawsuit that you filed. These loans can be a lifesaver especially for victims of personal injury and other related cases since they need money to pay for their huge medical bills and other living expenses, legal expenses and personal loans.
Once you have filled a lawsuit, you can apply for the cash advance from a lawsuit funding company. The lender will evaluate your case to determine the amount they can lend to you as well as discussing the terms of the settlement. Upon being approved, the lawsuit funding company will deposit the agreed amount into your bank account immediately. You can use the money to foot your medical bills and personal expenses as you await settlement.
How do you repay lawsuit loans?
Interestingly, lawsuit loans are quite different from typical personal loans. The money is repaid from the settlement funds after all other expenses have been covered. These expenses include the attorney fees, expenses of litigation such as copy costs, process server fees, and court costs. The lawsuit lender gets their cut after paying off these expenses.
What happens if you lose the case?
A lawsuit loan is an investment tool for the lending company, and it is usually given “without recourse.” Before giving out the money, the lawsuit funding company will look into many factors to determine your eligibility. So, if you lose the case, you don’t have to repay the money. The lending company assumes all the risks, and that’s one of the reasons the cost of these loans is higher than the traditional bank loans.
Who qualifies for Texas lawsuit loans?
While victims of personal injury are the common beneficiaries of lawsuit loans, individuals with other cases may also qualify for this type of financing. They include cases such as product liability, sexual harassment, breach of contract, wrongful termination, employment discrimination, and wrongful death. Lawsuit funding companies do not look at any personal qualifications such as credit score when lending the money.
These companies consider lawsuit loan as a pure investment tool. They can only get their money back if you win the case. But if you lose, they will walk away with nothing. Lending companies usually charge a higher fee for their services due to the high risk associated with these loans. The amount payable back depends on the interest rate and the time it takes for your case to resolve.
Why is a lawsuit loan a great alternative for financing?
Since their inception, lawsuit loans have helped many plaintiffs who are struggling financially as a result of lawsuits. Many individuals drain their savings and lack alternative funding during lawsuit battles. Taking a home equity loan isn’t an option since it could put their home at risk. Others may not be eligible for the traditional bank loans since they may have lost their jobs or they are incapable of working again. In such cases, lawsuit loans can make a huge impact on their lives. Here’s is how:
For many years, victims of personal injury have been disadvantaged by the legal system. Large companies have been able to delay cases in an effort corner litigant who are in dire need of the money. When the financial pressure becomes too much, the plaintiffs chose to settle for less than they deserve. Lawsuit loans were designed to fill this gap.
What’s the maximum amount you can get?
Some lawsuit lending companies can lend you as much as $500,000. The amount given will depend on the expected settlement, and the time it will take to repay the money. You may qualify for a huge sum if the expected settlement is significant.