Three Advantages of Lawsuit Loans

Jun 07, 2010

Three Advantages of Lawsuit Loans

Lawsuit loans are a relatively new concept. While they have been occurring for a number of years, it is only recently that an increasing number of attorneys and their clients are learning about lawsuit loans and how useful they can truly be. Wondering if a lawsuit loan might be justified in your situation? In some cases, they’re the ideal solution. In others, they simply don’t make sense. There are many advantages to getting a lawsuit loan in some cases, but we’ll focus on the top three.

Money for Bills

When you’re in a lawsuit it’s for a reason. Maybe you were injured by a car accident or perhaps you were wrongfully fired. There is usually a reason why someone is involved with a lawsuit. Quite often the person who is filing the lawsuit is doing so because they are left unable to work or perform their day to day tasks as a result of someone else’s mistake or negligence. This means that they don’t have the money that they need to pay their bills, which can be very stressful and traumatic. And since lawsuits often take a very long time to reach a conclusion, someone who is waiting on money from a verdict may be left with mountains of bills to pay and no way to handle the task. Lawsuit funding has the ability to give clients access to the money that they need when they need it, instead of having to wait months or years for the lawsuit to be completed.

Prevent Early Settlement

There are few things worse than early settlement when you have a solid case. In some situations, early settlement occurs because the plaintiff simply doesn’t have the financial strength to move forward, and more often than not, this is the result of the mounting bills a plaintiff is likely to face. While an early settlement might be right for your particular case, a lawsuit loan may work just as well. It’s something you must consult a funding company and your attorney about before you make a final decision.

No-Risk Funding

Before the funding company agrees to work with you, they’ll actually do quite a bit of research on your case. If your case has a good chance in court, the company may want to provide you with the funding you need. Once the funding has been issued, the case continues to move forward, and should the eventual verdict not be returned in your favor, you have no responsibility to repay the company. If you’d simply paid for those same bills with your credit card, you would still have a responsibility to repay them when the case reaches its conclusion, whether you win or not. Lawsuit loans don’t present that kind of financial risk to your pocket book.
Lawsuit loans aren’t right in every situation, so it’s important to talk with professionals in the industry before you make your final decision. You’ll also likely want to chat with your attorney before you move forward with any final paperwork.