No one is ever 100 percent prepared for the unexpected. There is absolutely no shame in admitting when you need a little help. When you or your loved one has been incapacitated by an accident, the expenses can quickly add up. Even if you have taken the necessary and prudent steps towards selecting an attorney and filing a lawsuit, mounting financial issues can bring your careful plans crumbling down.
A lawsuit loan can assist plaintiffs with medical and general living expenses, so that they can focus on the real work and planning of achieving a fair settlement. While researching lawsuit loans, or pre- settlement loans, some common misconceptions do arise. Since success is often about asking the right questions, here are a few that plaintiffs should consider and discuss with their family and loan provider:
When is the right time to consider a lawsuit loan?
If you are considering a lawsuit loan, you have more than likely exhausted all your available funds. A lawsuit loan is basically a cash advance on your settlement based on the value of your case. A percentage of the overall settlement can be dispensed to the plaintiff by their loan provider in order to pay pressing bills, medical expenses, and prevent evictions or foreclosure. Pre-settlement loans are most beneficial when they are used towards your most pressing needs.
How is a lawsuit loan different than a paycheck loan?
The confusion between these two occurs in instances of misinformation or misunderstanding. A paycheck loan or a payday loan is a short-term solution that comes with high interest rates and a prerequisite of employment. A lawsuit loan company realizes the situation that their client, the plaintiff, is in where they are faced with a potentially long-term legal negotiation and the possibility that an injury or death has resulted in a less than steady paycheck. Because of this, pre-settlement loans are not time sensitive and do not require credit approval or employment history checks upon application.
The loan company has made a careful investment in the success of the plaintiff’s case, and their loan is a means to see the plaintiff through to a fair settlement.
Plaintiffs should continue to ask questions of their loan provider and work with their attorney to find the best option available. It is with careful consideration that a plaintiff can make the decision to apply for a lawsuit loan and begin to piece back together their financial plan.
About the Author: Steven Medvin is the Executive Director of SMP Advance Funding, LLC, which provides lawsuit funding to individuals who need a lawsuit loan for pending lawsuits. For more information please visit: https://www.smpadvance.com.
