Plaintiffs usually struggle with massive costs related to their lawsuit, and then a settlement can take months or even years to reach. Lawsuit loans can help plaintiffs pay any expenses they experience during the lawsuit, but the most common include:
1. Medical bills. Many plaintiffs’ lawsuits deal with medical malpractice or personal injury. These victims could have had a surgery gone wrong or another type of medical problem that requires a lengthy and costly recovery. Or, personal injury victims can have medical bills that can’t wait for the lawsuit to conclude. Plaintiffs shouldn’t have to put off medical treatment just because they can’t afford it until they receive their settlement. In these situations, plaintiffs often put these massive bills on credit cards that acquire a large amount of interest. Until they receive their settlement, plaintiffs must manage these expenses themselves, but taking out a lawsuit loan means these bills get taken care of sooner.
2. Lost wages. If the plaintiff experienced an injury that made them unable to work or is pursuing a lawsuit because they were wrongfully terminated, they have to wait until they recover or receive the settlement to obtain income again. Even if the lawsuit isn’t related to employment, the lawsuit will take time, and time spent away from work means less money earned.
3. Everyday expenses. You’d think this would be a given, but it makes the list because daily expenses don’t just stop and wait for a lawsuit to conclude. While the plaintiff may be out of work, he or she must still pay their mortgage, car bills, groceries and other everyday bills on top of previously mentioned expenses. The pressure to provide for a home can put a plaintiff under a great amount of stress.
4. Personal loans. Many plaintiffs take out personal loans but must begin to make payments before the lawsuit concludes. Plaintiffs take out personal loans for the other expenses we’ve discussed, but sometimes, that money runs out before plaintiffs get their settlement. Banks don’t take into account the nature of the plaintiffs lawsuit—they will want the loan to be repaid regardless of how long the lawsuit is taking. Lawsuit loans are repaid when the settlement has concluded, so a plaintiff can apply for a lawsuit loan to help repay personal loans, everyday expenses, lost wages, legal fees, medical bills and other costs in the meantime.
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 www.smpadvance.com.
