Author : Carol Moore
The basics of legal and lawsuit loans A legal loan is an investment made by a company servicing the law markets, to plaintiffs involved in personal injury suits. It is important you do not mistake a legal loan with a traditional lending tool offered by banks. While some banks may provide the funds to legal loan companies, this form of lending is much different. A legal loan is made on a “pay if you win basis”; if you win your suit, you repay the advance. There are essentially two types of legal loans. A legal loan can be secured on a pending suit or one that has already been won. While the vast majority of people borrow against their suit that is still in the process of a settlement, some will borrow against a case that has already been won. When a person is involved in a suit their finances can be greatly affected because some people miss work and forced to pay outofpocket for medical and other related expenses. These bills and expenses greatly in jeopardy and in some cases people will go into default. This can be problematic for those people that own a car or need money to pay for a mortgage or rent. For those in the process of seeking remuneration through a product liability lawsuit, the legal procedures involved require money, which may not be readily available, particularly in cases where the person filing the lawsuit may not be able to work due to his/her injuries. In such cases, a presettlement cash advance, or lawsuit loans can help with
daily living expenses, loss of expected income or medical bills. The "loan is actually an amount of cash that is given in advance of the case being resolved. There is no credit check required, nor does the one requesting the service need any specific job or amount of income. When the final award determination is made, the lender or company then gets the fronted money returned to them. In addition to having the money to keep them afloat during a trial, the greatest benefit to the plaintiff is that the adjustment comes with no personal risks. In the eyes of the law, these situations are called nonrecourse arrangements; in the event that a case is settled for less than the amount advanced, or the opposing side wins the case, those responsible for the loan have no way to recoup the funds from the plaintiff.
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