| What is Lawsuit Funding |
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| Written by Gary Vanderheim |
| Tuesday, 08 September 2009 15:17 |
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Should you try to get an advance out of a lawsuit before it settles?
Should you try to get an advance out of a lawsuit before it settles? You can get advances out of a lawsuit by using settlement loans or lawsuit loans. These are not really loans, but we'll explain that in a minute. ...Stay Tuned. A Settlement loan is really an advance against your lawsuit. A finance company will give you money now. In return you agree to pay them more later if and when you case settles or is finished at trial. These cases only look at your underlying case to see whether they can advance money. Why is it not a loan? It is not a loan because if the case does not payout, then you don't have to pay back the advance. The fancy word for this is 'non-recourse' Whether the advance gets paid back is solely dependent on the case itself. So if the case settles then you pay the advance back. If the case goes to trial and you win, then you pay the advance back. If you lose the case and therefore get nothing from the lawsuit, then you do not pay the advance back. Don't use this unless you really have to. These loans can be incredible expensive because the interest starts building up immediately and fast. Only use these if you have serious financial problems and have no where else to turn. If you do decide to use lawsuit funding, then take as little money as you can. We've seen people use these for medical expenses, saving their home and making mortgage payments, and even living expenses. Does a Settlement Loan have an affect on your lawsuit? No. The financial company that gives you an advance isn't permitted to interfere with your lawsuit. All that company is doing is advancing you money. They aren't getting control of your lawsuit. You and your lawyers will decide when and the way to settle your claims. Or you and your lawyers will decide whether to take it to trial or not. These loans are expensive and the fees can add up quickly. The amount you pay back gets larger as more time goes by. The interest is accruing and sometimes very quickly. For this reason you should only take as little as you possibly can. Please take you time and consider your options carefully. Take a deep breath and go do some research. You can find a lot of resources on the internet. There are plenty of websites and Lawsuit funding blogs around to read. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Lawsuit Funding is a large industry. There are lots of companies and people offering services. Go check out industry blogs such as http://www.lawsuitfundingblog.com to continue your research. Click here to get your own unique version of this article with free reprint rights. |