This article is designed to explain the top 5 reasons why someone might want to look into a settlement loan. A settlement loan is a cash advance on a possible settlement amount in a pending lawsuit. A settlement loan provider would review the merit of your lawsuit and probability of winning and determine if you're eligible. Below are the top 5 reasons why a settlement loan would be right for you.
#1. Settlement loans don't require credit checks or specific income amounts.
A settlement loan is really just a provider or investor buying interest into your pending lawsuit. They provide a specific portion of your estimated awardable amount in return for a portion of it and they original amount loaned. Since the settlement loan is based solely on your case your credit report and current income play no role in the approval process.
#2. You only pay back the loan if you win your case.
This is what makes settlement loans not a true loan by nature. If you happen to lose your current lawsuit you're not required or obligated to pay back the original amount of the settlement loan. You only pay it back if you win your lawsuit case; this alone makes a settlement loan far more appropriate than a traditional loan.
#3. Allow you to not settle your lawsuit early for a lower amount.
Since you'll probably not be able to work during a pending lawsuit income will be hard to come by. Due to ethic rules an attorney cannot loan their client money, as it might credit situations where you'll feel you'll need to settle sooner when you really didn't want to. Since a settlement loan can provide your financial support during your lawsuit you won't feel the stress to settle early. You'll be able to make all medical, auto, home, etc payments on time and protect your credit history.
#4. You don't have to take out a loan against the full amount.
Unlike common belief you don't need to take out the maximum amount in allowed in a settlement loan. You'll find many providers go as low as $250 and up to $1,000,000+ when it comes to loan able amounts. This way you can only take out what you need to support yourself during the case and keep more of your awarded money at the end. Most settlement loan providers will also allow you to take out multiple settlement loans if you still need more money and the case has not ended yet.
#5. Settlement loans do not affect your case at all.
For some reason people think settlement loans will effect their case, this is farther from the truth. The defendant in your case is never notified if you apply for and\or get accepted for a settlement loan. In fact, the court itself isn't even notified about the settlement loan and the provider is not required by law to notify anybody beyond your attorney.