So, you're in a lawsuit. You need money now, and you want it fast. If you're wondering how you can stay afloat until your suit gets to trial, perhaps it's time to think about lawsuit funding. Lawsuit funding is the process of providing an individual with the means to obtain the types of loans usually associated with a lawsuit. Such loans are typically (but not always) provided to individuals involved in personal injury lawsuits. This article will discuss the ins and outs of this process, as well as the advantages.
First, we should take a look at the difference between lawsuit loans and lawsuit funding. Lawsuit loans refer to a non-recourse loan that can be easily obtained. As such, many individuals who are involved in a personal injury lawsuit can obtain lawsuit loans without the hassles often associated with securing traditional financing. However, the downside to lawsuit lending is that the interest rates are often quite high. This is one reason why it is so important to make sure that you understand the terms of any financial agreement before signing on the dotted line. Visit here for more info on the above topic.
Next, let's take a look at the differences between lawsuit loans and settlement funding. While both are non-recourse loans, they differ primarily in terms of terms. While settlement funding typically provides an award to the plaintiff, who then pays it out from future settlements, lawsuit financing is a loan. Therefore, while the plaintiff is able to obtain funding, he or she does so against a debt that the plaintiff must repay.
It is important to note that lawsuit funding companies do not provide legal services. As such, you should be aware of any fees that may be charged by the lending companies. Although, most of these companies offer free consultations, there are also firms that require a monthly or annual fee. As previously mentioned, you are advised to thoroughly examine the terms of the contract before signing on the dotted line. In addition to this requirement, there is also a limitation of two suitcases being funded at the same time.
As previously stated, there are differences between settlement funding and commercial litigation funding. One difference is that plaintiffs are not permitted to borrow money in the form of commercial litigation funding. On the other hand, plaintiffs are not precluded from obtaining lawsuit advances. In the majority of instances, commercial litigation financing companies will allow plaintiffs to obtain a small amount of funding, which can be used to defray their expenses. (For those that are unfamiliar with commercial litigation financing, it is a term that has a lot of overlap with commercial real estate financing.)
There are many other reasons to avoid settlement funding as well. One of the most common reasons is that it can take several years for a plaintiff to receive any type of financial award. Moreover, if the plaintiff does not receive any monetary awards in a timely manner, they will not have enough funds to pay off their expenses and living expenses. To get a detailed overview of this topic, see here: https://en.wikipedia.org/wiki/Legal_aid,