You may have heard the term ‘lawsuit loans’ on television or seen it in newspapers and wondered about how it works. Unless you are a plaintiff involved in a personal injury lawsuit, you would really have no use for litigation funding. However, if you have been injured and are involved in a lawsuit, you will be very interested to know that lawsuit loans are simply a cash advance against the money you expect to be awarded in a lawsuit. In essence, if you qualify you can get a portion of your settlement now, when you need it most.
When you have been seriously injured, you may be unable to work. Between the added medical expenses and inability to work, bills can pile up and you simply cannot pay them all. It’s stressful, particularly when your injuries are not your own fault and your life has been turned upside down by someone who was negligent. Lawsuit loans help ease the stress by providing you with the money to pay your bills and live normally while waiting for your lawsuit to settle.
How does litigation funding work, and how do you know if you qualify?
Lawsuit loans are granted only to those who qualify, which is really determined on the details of your claim and whether it’s valid. For instance, frivolous lawsuits are not considered. Your attorney will gather the necessary information to submit to the funding company for its review. This information will include the nature of your injuries, how serious they are, medical reports, and the details of the accident or circumstances which caused your injury. If your claim is strong and will likely win, you will probably qualify.
Do you have to pay any money out of your own pocket?
No. With lawsuit loans, you only repay the loan along with any applicable fees and/or interest when you have won your lawsuit and have received compensation. There are no monthly payments, no up-front fees. If for any reason your attorney fails to win your lawsuit, you owe absolutely nothing to the litigation financing company.
How much of an advance can you get if you qualify?
Most company who specialize in lawsuit loans offer an advance of approximately 10% of your expected award. So, if your attorney determines that your case is valued at $350,000, you will likely be advanced about $35,000 if you qualify.
This type of funding is ideal for plaintiffs who find they’re facing financial issues while waiting for their lawsuit to settle, but it isn’t right for everyone. Learn more about litigation funding online, or discuss it further with your attorney to determine if it’s the right option for you. Contact Mayfield Settlement Funding today!!!