Many plaintiffs don’t realize what affect their finances have on their lawsuit. It is common for plaintiffs to struggle financially since they are often out of work, have medical bills to pay, or maybe they were experiencing hard times before their claim was even filed. Plaintiffs can cover these expenses with their settlement, however, bill collectors and creditors aren’t going to be waiting patiently for the lawsuit to conclude and will likely expect payment before the plaintiff receives their settlement. If the defendant is under too much financial stress, then they may accept a an unfair offer just to have the cash to pay bills immediately. In this case, the plaintiff can use a lawsuit loan to help cover expenses until a settlement is reached. Lawsuit loans are taken out against the plaintiff’s settlement, and so the plaintiff can actually use their settlement to help take the pressure off of both their finances and the legal case. A few specific instances that put financial pressure on plaintiffs: The defendant is a company or an organization rather than an individual. Plaintiffs are responsible for their own legal fees, which can make other financial responsibilities even more stressful. But this creates even more of a hardship if the defendant isn’t also an individual. When the case is against a company–such as a slip and fall case against a restaurant or department store–then the plaintiff is fighting against a defendant with a bigger legal budget and no personal financial responsibilities. Since the defendant likely has the financial means to keep the case going for as long as necessary, this means that time is on the defendant’s side. Often, stalling the case in order to pressure the plaintiff into accepting a lower settlement is cheaper than a fair settlement. With a lawsuit loan, the plaintiff can take care of their personal expenses without jeopardizing their legal case. The plaintiff must repay loans before receiving the settlement. If the plaintiff chooses to use credit cards or personal loans, they run the risk of having to make payments on them before the case reaches a settlement. Especially if they are out of work, this may not be a realistic option. Repaying a lawsuit loan is much more convenient for the plaintiff since the loan is repaid once the plaintiff receives their settlement. Insurance isn’t enough to make ends meet. Plaintiffs aren’t always totally on their own—maybe insurance is helping to cover the medical expenses, or they are receiving help from another type of insurance while suffering from lost wages—but even this often isn’t enough to make ends meet, or isn’t dependable. If the plaintiff is heavily relying on insurance, then they can run into troubles if the insurance company denies coverage, which is common when the details of the injury or incident are being argued in court. With a settlement loan, the plaintiff can get the financial help they need quickly and they know exactly how much money they can count on. 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
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