How Is Someone Eligible For A Lawsuit Loan During There Case

How Is Someone Eligible For A Lawsuit Loan During There Case

Sometimes known as pending settlement loans, lawsuit loans are designed to help plaintiffs deal with expenses while their suits move through the court process. In many instances, these loans make the difference between being able to maintain a reasonable standard of living and dealing with a great deal of financing hardship. Here are some important facts you should know about this type of lending situation, including how they loans work and what you can do to get the best deal.

Lenders Examine Cases Closely Before Approving Loan Applications 

Unlike other lenders who are concerned with the amount of money you earn or your credit score, lenders who offer lawsuit loans are focused on the merits of your case. They want to determine if there is a higher chance that you will win. Assuming that the lender believes you are likely to win the suit, your application has a better chance of being approved.

Interest Rates Vary From One Lender to the Next 

Seek to find the lowest rate of interest possible, but also find out how often the interest is compounded. What seems to be a great rate may be bad in the long run if it’s compounded semi-annually rather than annually. Since you do hope to have something left over once the loan is paid in full and the attorney fees are settled, pay close attention to the interest rate and the terms.

The Amount You Qualify For Will Be a Percentage of the Projected Settlement 

Most lenders who offer lawsuit funding will approve applications for only a certain percentage of the projected settlement. That’s important, since that percentage protects the lender from not being able to collect when some of the settlement is going to pay off attorney fees. Typically, you can depend on being approved for a loan of around 25% of the projected settlement.

You May Owe Nothing if You Lose the Case 

Most lenders do not require debtors to repay their loans if they lose their cases. They seek to minimize their risk by assessing the merits of pending cases closely. While it’s true that the lenders do charge interest rates and funding fees that apply if you win, it also means you won’t be in debt to the lender if you don’t win the case.

Are lawsuit loans right for you? The only way to know for sure is to talk with a few … Read the rest