Friday, February 6, 2009

Use a Settlement Loan As a No Risk Legal Financing Aid

Many people involved in a lawsuit find themselves in a difficult situation. Not all lawsuit attorneys representing a plaintiff work on pro bono or contingency fees. They require a retainer fee up front and payment for other costs of the lawsuit trial. This type of financial requirements is difficult if not impossible for 90% or more plaintiffs. This is a big reason why many people don't follow through with a lawsuit, or settle with a less experienced attorney or law firm. There is an option; a pre settlement loan is a great way to secure legal funding.

A settlement loan is basically an advance on the possible monetary award of your lawsuit. A settlement loan provider will give you a cash loan which can be used for whatever you'd like, including legal funding. In return, if your case reaches a verdict in your favor and money is awarded you'll pay back the loaned amount, interest and a nominal fee. If you happen to lose your case you are not required to pay back the loan, that's right a settlement loan is a non-recourse loan, meaning it's only required to be paid back if you win your case. This is an excellent solution for a plaintiff in need of legal funding but unable to get access to funds with their own assets.

Now, look at the advantages your able to get a cash loan in advance of any awarded money in your lawsuit, to spend as you need. This can lift a big financial burden off the plaintiff, and allow legal fees to be paid, medical bills, monthly payments, etc. In return, the downside is you are required to pay back the full amount, interest and a nominal fee only if you win your case. That being said, you should only get a loan on the absolute smallest amount you need, perhaps enough for monthly expenses for a few months and your legal fees.

Remember, if your case reaches a verdict in your favor and awarded monetary gains you'll get much more from a judge or jury than you would with an out of court settlement. So, a settlement loan may cost you in interest, but overall increase the amount of money you're able to receive.

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