You may have heard of settlement loans, particularly if you are the plaintiff in a personal injury lawsuit. The name is a little misleading, considering this type of litigation funding is actually not a loan at all, but a cash advance given against a pending lawsuit settlement to those who are approved. Essentially, if you qualify you are getting a percentage of your own money, that which you expect to be awarded in your lawsuit. So, how does it work?
Basically, the litigation funding company must approve settlement loans, which is easily accomplished. If you are the victim of negligent circumstances and have suffered legitimate injuries, chances are you will qualify. Settlement loans are not given for lawsuits which are considered frivolous; however, if your case is a legitimate one which is likely to win, you will likely qualify. You and your attorney will submit the required information to the funding company, which will include the details of your injuries and the accident or circumstances which caused them. Personal information such as credit rating, employment history or status, and criminal background will not be required.
Once the litigation funding company has all of the information for review, it will be determined whether you qualify quickly. With settlement loans, you can expect to get the money you need to pay household bills, medical expenses, attorney fees, and more within 24 hours of approval. In most cases, the financing company will advance about 10% of your expected settlement, so if your attorney valued your claim at $237,000, you can expect an advance of about $23,000 to $24,000.
Most personal injury plaintiffs find themselves in a financial bind because of their injuries, related medical costs, and inability to work. You will not be asked to pay any fees up-front with settlement loans, and there are no out-of-pocket expenses to make a bad financial situation worse. Repaying the loan is simple; you repay the litigation funding company only when your lawsuit has been won, and you have your money. Any interest and/or fees which apply will be paid at that time as well. If for any reason you fail to win your lawsuit, you will not repay the funding company, as settlement loans are no-recourse.
Settlement loans make it possible for those involved in personal injury lawsuits to get the money they desperately need quickly, without putting themselves at financial risk. If you are the plaintiff in an injury lawsuit, speak with your attorney about this type of funding to learn if it may be a suitable option for you. Contact Mayfield Settlement Loans today.