Lawsuit Loan | Lawsuit Loans

It’s called a number of things by a number of people: lawsuit advance, pre-settlement loan, litigation loan, and a few more.  But whatever name it goes by, it is important to note that lawsuit loan is not really a loan.  In fact, some loan lenders stress the importance of substituting the word “loan” for the words “advance,” “finance,” or “funding.”

Why is that?  To describe the transaction plainly, lawsuit loan is a cash advance a plaintiff receives against possible proceeds from a pending lawsuit settlement.  The “plaintiff” is the injured party who brings civil action against the defendant.  Unlike your regular loan, which must be paid no matter what, lawsuit loan is a non-recourse debt.  This means that when the plaintiff fails to secure a settlement, he or she is not obliged to pay the loan.  Ergo, your collateral is your future settlement.  No settlement means no duty to pay the advance. Read the rest of this entry »

Lawsuits are costly, and this is one of the reasons why individuals often shy away from filing a lawsuit.  If you are initiating a lawsuit in court—and you happen to be financially strapped—you need to consider litigation funding.  One of the most common sources of litigation funds is a lawsuit loan.

Technically, a lawsuit loan is a sum of money that a person (complainant, or plaintiff) may borrow from a third party, particularly a litigation funding company.  In this type of financing, you are not held responsible for any fees if the court rules in favor of the defendant or your case is dismissed.  With no monthly payments required, the term “lawsuit loan” is, in fact, a misnomer.  It is actually more of an advance payment or an investment that the litigation funding company makes, which you pay back only when your case is settled or when you win the legal battle. Read the rest of this entry »

Experiencing a death in the family can be very hard to deal with, especially when the cause of death is not natural.  Not only do you have to deal with the grief of losing a relative, but you may also have to deal with a wrongful death lawsuit, which can cost great deals of money and take quite some time to reach a settlement.  If you are having financial troubles and you are having a hard time paying for your legal fees, you may want to consider getting a lawsuit loan to help cover the expenses of a wrongful death case.  Lawsuit loans are very helpful for personal injury cases such as wrongful death cases, because these loans can give families the financial support they need to get through the financial and emotional burden of losing a family member by way of wrongful death.  This article will cover the basics of a wrongful death lawsuit and offer some helpful information on how you can use lawsuit loans to help you finance your case. Read the rest of this entry »