Lawsuit Loan: Is It Right For You?
Jim Roman
What Is a "Lawsuit Loan"?
If you're a plaintiff in a lawsuit, you know how tight things can get while you're waiting for a settlement. If you're injured and you can't work, you can start to get behind on the bills in a hurry. In comes the lawsuit loan to the rescue.
Let's say that you're the plaintiff in a personal injury lawsuit and the jury finds for the defendant and against you. You will, at least, know that the advance funds you received and spent for mortgage, food, utilities and credit cards is not going to have to be paid back.
As you can imagine, the lawsuit lenders are taking a huge risk and, therefore, the loan repayment terms are quite a bit higher than a home mortgage or consumer loan...and rightly so.
Where Can I Find A Lawsuit Lender?
There are many lawsuit loan companies. You can try Googling for them or looking in the Yellow Pages if you're in a larger city. You might ask your attorney for a referral to someone she knows. Sometimes, attorneys think this is a bad thing and won't refer you so you'll have to go it on your own if you're convinced it's the right thing to do.
Think My Attorney Might Advance Some Cash?
As you can imagine, your attorney could be considered unethical if he offered you a cash advance on your lawsuit. He is probably covering your case on a contingency basis but that's not considered a loan. If he advanced money to you, he might be more interested in getting his loan repaid than in your best interest as a client. It certainly could be considered a conflict of interest.
Should I Consider A Lawsuit Pre-settlement Loan?
Again, because of the high repayment costs associated with a lawsuit settlement loan, it might not be the best thing for you. If you have access to a home equity line of credit, you should explore that possibility and make comparisons.
You may not own a home or you may have waited until you've fallen so far behind on bills that you can't obtain a loan. If that's the case, a lawsuit loan might just be the ticket for you. If your lawsuit drags along, the high cost of repayment is offset by the immediate relief from bill collectors and the funds could mean saving your home, car and other possessions. If you're in that situation, consider a lawsuit loan a great alternative.
The long and short of it is that everything has it's place and you have to be the one, ulitmately, that decides what's best for you and your family.
Lawsuit Loan: Is It Right For You?
What Is a "Lawsuit Loan"?
If you're a plaintiff in a lawsuit, you know how tight things can get while you're waiting for a settlement. If you're injured and you can't work, you can start to get behind on the bills in a hurry. In comes the lawsuit loan to the rescue.
Let's say that you're the plaintiff in a personal injury lawsuit and the jury finds for the defendant and against you. You will, at least, know that the advance funds you received and spent for mortgage, food, utilities and credit cards is not going to have to be paid back.
As you can imagine, the lawsuit lenders are taking a huge risk and, therefore, the loan repayment terms are quite a bit higher than a home mortgage or consumer loan...and rightly so.
Where Can I Find A Lawsuit Lender?
There are many lawsuit loan companies. You can try Googling for them or looking in the Yellow Pages if you're in a larger city. You might ask your attorney for a referral to someone she knows. Sometimes, attorneys think this is a bad thing and won't refer you so you'll have to go it on your own if you're convinced it's the right thing to do.
Think My Attorney Might Advance Some Cash?
As you can imagine, your attorney could be considered unethical if he offered you a cash advance on your lawsuit. He is probably covering your case on a contingency basis but that's not considered a loan. If he advanced money to you, he might be more interested in getting his loan repaid than in your best interest as a client. It certainly could be considered a conflict of interest.
Should I Consider A Lawsuit Pre-settlement Loan?
Again, because of the high repayment costs associated with a lawsuit settlement loan, it might not be the best thing for you. If you have access to a home equity line of credit, you should explore that possibility and make comparisons.
You may not own a home or you may have waited until you've fallen so far behind on bills that you can't obtain a loan. If that's the case, a lawsuit loan might just be the ticket for you. If your lawsuit drags along, the high cost of repayment is offset by the immediate relief from bill collectors and the funds could mean saving your home, car and other possessions. If you're in that situation, consider a lawsuit loan a great alternative.
The long and short of it is that everything has it's place and you have to be the one, ulitmately, that decides what's best for you and your family.
JIm Roman highly recommends the use of a lawsuit loan broker when applying for a lawsuit loan because of the complexity of the system. You can lose valuable time and even be denied a loan if you don't know which types of different loans are funded by which companies.
A broker can help you dodge the mines in this minefield. One company has consistently earned Jim's highest 5 star recommendation, Charles C Harmon Co.
You can contact them at 888-822-3410 toll free for a FREE consultation.
|
