When cash is offered (advanced) to a plaintiff in form of a personal injury lawsuit, it is often referred to as a “lawsuit loan,” but it is not really a “loan.” Lawsuit loans are, in fact, non-recourse cash advances.
“Non-recourse” means that lawsuit loans are only repaid should the recipient of the loan secure a settlement from his or her pending legal claim. In case the recipient of the lawsuit loan fails to reach a settlement, he or she keeps the money from the lawsuit loan, and the company that made the lawsuit loan writes it off as a loss.
Benefits of taking lawsuit loans
Lawsuit loans fill a critical need in the plaintiff’s life. They provide needed cash to plaintiffs who are waiting for their claims to settle. Taking pre-settlement funding might take just a few hours or a day, but it could take several months, or even a year or – in some cases – a few years for a settlement to get a judgment.
When an attorney has taken a case on a “contingency” basis (he will be paid “contingent” on the outcome of the lawsuit), the client does not have to pay anything upfront, none of the attorney’s expenses, and no legal fees.
However, that same client – who often cannot work because of the injuries he or she has sustained needs cash to cover living expenses and to pay for medicine, medical treatment, or rehabilitative services. Lawsuit loans bridge the gap between the injured party’s need for cash and the time it takes a case to work its way through the litigation process to a successful conclusion.
Lawsuit Loans is not similar to normal loans
Lawsuit loans are not like traditional loans in any way. Unlike conventional loans, there are no monthly payments. Lawsuit loans are repaid in a single payment by the recipient’s attorney from the proceeds of the settlement. Even if the attorney goes to trial and loses (and fail to reach a settlement), the recipient keeps the money and owes the lawsuit loan company nothing!
Lawsuit loans are different in many ways a well. Lawsuit loan companies do not run credit checks and do not verify employment because lawsuit loans are not granted based on the applicant’s ability to repay them from his or her regular income, but rather on the strength of the legal claim against which the lawsuit loan is funded.
Lawsuit loans come with no application fees, out-of-pocket expenses, or any other up-front costs, so they are risk-free to the applicant. To apply for legal funding, call America Lawsuit Loans at 888-335-3537. They are the best provider of pre-settlement funds, and a plaintiff can easily get their cases funded.