Lawsuit Loan and Settlement Loan Information
Welcome to Pending Lawsuit Loans. Your source for information on lawsuit loans and settlement loans.
A lawsuit loan or settlement loan is a non-recourse loan based on the outcome of your pending lawsuit. Since it’s a non-recourse loan, you won’t have pay the loan back in the event you lose your lawsuit.
However, should you win your case you’ll pay back the principal plus interest and any fees. Because the lawsuit and settlement loans are non-recourse, the lender will contact you and your lawyer and thoroughly research your lawsuit.
Lenders will only give you a loan if they feel you have a good chance of winning your lawsuit. For this reason, if you have a frivolous lawsuit you will have a hard time finding a lawsuit loan lender. Fortunately, lawsuit loans are available for many types of lawsuits.
Why Should You Get a Lawsuit Loan?
A lawsuit loan can be used to pay for your rent, food, car payments, medical bills or a mortgage while you await the outcome of your lawsuit. If you are unable to work or have lost your job, a lawsuit loan can give you the funds necessary while you get back on your feet.
You get cash before things are settled, which can be months or years. And the lawsuit lender gets a lien on your lawsuit proceeds.
A lawsuit loan often helps you get a larger settlement because you’re not under pressure to get an immediate settlement. This is because you’ll have funds to carry you along while your case is settled.
Lawsuit loans versus traditional loans
The benefit of a lawsuit loan over a lawsuit loan is that a traditional loan will have to be repaid regardless of whether your win or lose your case.
On the other hand, a lawsuit loan is only paid back when you win. A lawsuit loan is basically a lien against the proceeds of your personal injury lawsuit.
In the event you recover less money than the lawsuit loan, you’re only obligated to pay more than your share of the recovery.
In addition, lawsuit loans do not require credit checks or collateral. This is because you only pay the loan back if you win your case, so your credit is not important to the lender.
Another advantage of a lawsuit loan is that you won’t have to make monthly payments. You only pay when your case is settled.
Can my lawyer give me a lawsuit loan?
Unfortunately, your lawyer cannot give you a lawsuit loan because it could create a conflict of interests, which may put your lawyer’s interests above yours.
However, your lawyer can refer you to a lawsuit loan lender.