It would be wonderful if the stresses of the legal battle stayed in the courtroom, but, unfortunately, plaintiffs in lawsuits often find their entire lives are effected by their lawsuit. Anyone who thinks plaintiffs have nothing to lose have it very wrong—lawsuits take a toll on plaintiffs’ finances, even ones unrelated to the lawsuit, and are emotionally draining. Lawsuit loans, however, can make the process easier. A few unexpected effects of lawsuits on the plaintiff include:
You could lose your job. Lawsuits take time and effort. You will probably have to take off time from work and your work performance may suffer under the stress. How will your employer react to this? Sure, the perfect boss would be understanding, but they also have a company to run. You should check the employment laws in your state, but there aren’t usually the same protective measures in place to protect plaintiffs as there are for employees who miss work for jury duty. Especially with lawsuits that take years, many plaintiffs choose to reduce hours or resign with their future settlement in mind, and lawsuit loans allow them to get cash from their settlement in the meantime.
Your personal loan provider could expect repayment before the lawsuit concludes. At the start of your lawsuit, there is no way you can know how long it will take to reach a settlement and banks aren’t exactly known for their understanding nature. When you deal with a lawsuit loan company, you deal with a company that knows what a plaintiff goes through in the legal process. Lawsuit loans are repaid after the settlement, so you don’t have to worry about the pressure to repay the loan while the lawsuit is still going.
You could lose your home, car, or anything else that you either put up for collateral or can’t make payments on. If you use your house or car as collateral for a loan, what happens if you lose and can’t repay the loan, or, as previously mentioned, the loan company expects repayment before you can afford it? Not only will you lose the settlement but a valuable possession, too. With lawsuit loans, the collateral is the case.
You could accumulate crippling amounts of credit card debt. With the stress of a lawsuit going on, many plaintiffs use credit cards for an easy, short term fix that could hurt them in the long run. Unless credit card debt or a personal loan is paid off when your creditor expects it, your credit will suffer, which is difficult to shake from your financial history and can affect loan applications in the future.
Getting through this legal process is demanding, but lawsuit loans can help plaintiffs power through.
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.
