Lawsuits can be expensive, and if the particular case you’re trying to win concerns injuries, you might find yourself unable to work. This is why a lot of people end up choosing not to file a lawsuit instead, in fear that they might lose more than they gain out of the entire process. To make the costs of a lawsuit easier, lenders offer what are called lawsuit loans which basically provide you the necessary financial assistance you need until you win your settlement. If you’re wondering whether you should take out a lawsuit loan, read through these pointers to help you understand if your situation calls for it.
- If You’re Sure You’ll Win – A lawsuit loan can be very helpful, but it can also be a double edged sword, particularly if you don’t win your case. Lawsuit loans are paid back with the settlement you’re granted for the case that you win. The entire purpose of taking one out is to help you with the financial struggles while you’re unable to get your hands on a settlement. Unless you’re certain that the evidence you have can bring you to win, it would be better to discuss your proposition for a lawsuit loan with your lawyer. Lenders aren’t quick to approve requests anyway, as they want to make sure that you’ll be able to pay.
- If You Don’t Have Enough Funding – A personal injury case, for example, renders a plaintiff unable to work, and thus unable to provide the daily needs of not only him or herself, but also of their dependents. What’s more, the costs of the legal loan process can put extra weight on the necessary expenses. If you don’t have enough funding for your lawsuit, you would be better off taking out a lawsuit loan. This allows you some legroom until such time that you’re granted the settlement. For more details about loans, visit http://en.wikipedia.org/wiki/Hard_money_lender.
- If You’re Case Won’t Take Long – A lawsuit cash advance usually runs at an interest rate of anywhere between 27% and 60% of the loaned amount and this will keep getting heavier as your case progresses. If you’re sure that your case won’t take long and that you will still be able to pay back the loan plus have some extra once you win your settlement, you could push through with your plans to take out a loan. But if your case is complex and it seems that it might take a while to come to a verdict, stay wary and discuss your options with your attorney.