Q:What is the definition of lawsuit loan?
A:Lawsuit loan definition: A cash advance based upon the merits of a lawsuit that provides a plaintiff with sufficient funding to reach the conclusion of the case when the plaintiff will receive his/her fair share of the settlement or verdict. Lawsuit loans are not based on a plaintiff’s prior credit or bankruptcy status. Lawsuit financing companies give non-recourse funding to plaintiffs thus requiring the plaintiff to pay back the advance and fees/interest only upon a favorable decision in the case. If the case is lost then the cash advance is kept by the plaintiff with no obligation. Therefore, a lawsuit loan is not a true “loan” but rather a pre-settlement cash advance also know as: litigation funding, litigation finance, litigation loan, litigation cash advance, lawsuit funding, lawsuit cash advance, lawsuit financing, case loan, case cash advance, plaintiff cash advance, litigant funding, pre-settlement loan, and pre-settlement lending.
Q:Are there any rules on it?
A:The following are my 10 Rules of Lawsuit Loans, please read them and understand them as they should help every plaintiff through this difficult time.
10) Understand your case
Almost all personal injury attorneys will tell their client that they have a “million dollar case.” We all know that not every case is a “million dollar case.” I am not saying that your attorney is incorrect but I am saying that you, the plaintiff, should understand your own case. Familiarize yourself with other cases that are similar to your case. How long did it take to reach a verdict/settlement? Also, research the final verdict and settlement amounts awarded to the plaintiffs in those other cases which should help set expectations on your own case.
9) Lawsuits take forever
Have you ever heard someone say that the were surprised that their lawsuit proceeded so fast? The judicial system of the United States is not known for being speedy and I do not think that will change anytime soon. The odds are that your lawsuit will also take longer than you expect. My suggestion is to expect your lawsuit to take twice as long as your original estimate. This should help set realistic expectations and hopefully you will be pleasantly surprised at how quickly your case concludes.
Research lawsuit loans
I have given some background on lawsuit loans in this article but you should continue to learn as much as you can about lawsuit loans before applying for one. There are some good internet sites that give more background on lawsuit loans.
7) Be prepared to accept less money
A lawsuit loan is not a substitute for your settlement. It should help supplement your current income so that you are able to pay necessary bills until you receive your settlement. The average lawsuit loan amount (depending on the case type) ranges from $1,000 to $10,000. There are lawsuit loan amounts that fall outside of this range but the majority of lawsuit loan applications ask for an amount within in this range.
6) Start early Read the rest of this entry »
