How do you know if it’s right for you?
Legal settlement advances are non-recourse (i.e., if you don’t win, you pay nothing back for the loan) cash advances. They are available to individuals who sustain losses (e.g., personal injury, wrongful termination, etc.), and who agree to repay the advance once the claim has been resolved in their favor.
There are inherent risks for lenders with such loans. Therefore, most lenders analyze such requests diligently. Numerous authorized, principled, and realistic issues must be taken into consideration prior to obtaining a legal settlement.
How Do They Work?
Individuals who sustain losses contact either a lender or broker who offers legal settlement advances. The lender stays in close touch with the lawyer, and obtains requisite information about the case.
Relying on the information gathered, the lender predicts the cost of settlement and offers advances to the plaintiff (i.e., the one who files the claim). Once the case is settled, and if it goes to court, the defendant (i.e., the party against whom the claim is filed) frequently has to pay fees related thereto. (Any fees associated with obtaining the advance may be assessed against the defendant.)
Once again, with non recourse loans, you do not have the obligation to repay if you lose the case.
Costs related to the advance are contingent on numerous factors, not the least of which is the nature of the case and the lender involved. Many lenders offer such loans, ranging from $500 – $200,000.
When is a Legal Settlement Advance Appropriate?
Litigation processes can take years to settle. An injured person customarily must pay all of the officially authorized expenses connected with the litigation while the case is pending. If you are unable to work, will you be able to wait till the case is settled?
In many such cases, these loans mean the difference between paying your bills or destroying your credit.
Acquiring any new debt should be considered carefully. If other funding-alternatives are available, they may prove to be your solution. Costs are obviously involved with this funding. Therefore, when you are opting for legal settlement advances, choose wisely!