Waiting for a settlement from a lawsuit can take months or years longer than expected. What are the victims supposed to do while they wait? Many have found that lawsuit loans are an effective way to get the money they deserve after the settlement process is complete.
Lawsuit funding options are a great way for families to meet their short-term financial obligations while their case is underway. One aspect of lawsuit settlement financing that many fail to realize is that often times the lender will take a portion of the settlement to cover their lending risk.
Rather than give up their hard earned money these families may want to consider alternative lawsuit settlement financing that has lower interest rates and fewer fees. These are available from online lenders and even peer to peer lending sites.
Among the many advantages of lawsuit funding strategies there are also a few drawbacks. Below we cover the entire process of finding and getting approved for lawsuit settlement financing.
Discover how to get lawsuit funding below:
- Advantages of Lawsuit Settlement Financing
- Getting Approved for a Loans
- Where to Find Settlement Financing Online
Advantages of Lawsuit Loans
No matter what situation or case a victim is involved in they are entitled to get their money immediately.
Unfortunately the settlement process is usually drawn out and unbearably slow. While a lawsuit verdict may come quickly in certain cases settlements often are much slower. The fact is that the defendants are usually reluctant to pay and in some cases do not have liquid assets available to make the required payments.
Lawsuit funding can be used to fund settlements from a number of common cases. For example, personal injury cases usually have large payouts but can take years before the awarded payments begin. In the meantime a victim may need to pay for medical expenses, legal fees and household bills while out of work. Lawsuit settlement financing can help reduce this financial burden during the process.
Another situation where lawsuit loans are useful is during car accident trials. Again the awarded settlement can take longer than expected to receive. The plaintiff may still need to cover everyday expenses or hospital bills while they wait for their settlement.
Lawsuit loans can be used for the most common types of lawsuits:
- Personal Injury Cases
- Car Accidents
- Construction Accidents
- Medical Malpractice
- Product Liability Cases
These are only an example of the most frequent reasons families start their search for lawsuit settlement financing. Some of the other situations people use lawsuit funding is for property damage cases, small claims settlements and even wrongful termination. Even a small lawsuit loan can give families enough financial freedom to continue living a normal life while dealing with the legal process.
Loans may also be helpful in these situations:
- Property Damage Cases
- Small Claims
- Wrongful Termination
- Slips and Falls
- False Imprisonment
Getting Approved for Lawsuit Loans
Like standard personal loans or traditional bank loans many lenders will have certain requirements for their borrowers. One of the primary reasons for not getting approved for settlement loans is a bad credit score. Banks consider a low credit score to be a indicator of a high-risk borrower.
During a lawsuit a borrower may not have the ability to improve their credit score in a short period of time. In this situation a lawsuit plaintiff may want to consider a guaranteeing their lawsuit loan with a portion of their settlement. Another option is to pursue bad credit loans with higher interest rates or larger required down payments. While this may not be the ideal situation, often times it is the only way to get lawsuit funding quickly.
Where to Find Lawsuit Loans Online
Lawsuit settlement loans are available from many sources. In fact, there are so many lawsuit funding options available that many families have found it difficult to decide where to turn. Today many law firms have financing available for their clients. This can be a very convenient way to get short-term lawsuit loans but usually comes at a price.
Many people are turning to peer to peer lending sites to get lawsuit loans. For anyone that is unfamiliar with peer to peer lending it is a new platform that connects individual investors to borrowers looking for personal loans. In contrast to traditional banks, peer to peer lending sites have lower interest rate loans and require no down payment. When a family needs access to money quickly after a lawsuit social lending can be the perfect solution.
Families may want to review more information about the most popular peer to peer lending companies before applying for lawsuit settlement loans.
Borrowers should consider reviewing our guide on social lending as an introduction to lawsuit funding.
While our guide was designed to help families understand their lawsuit settlement loans options, this was created for information purposes only. Please consult with an attorney about the possible ramifications of lawsuit settlement financing before completing the loan application process.