How to Pay For Your Lawsuit 3 Comments
Lawsuits are one of those things that most people know nothing about until they are involved in one. People sue for all kinds of reasons, but the situation nearly always involves some kind of emergency. Because over half (of Americans, at least) of surveyed respondents have enough savings to cover an emergency, many individuals simply don’t have the resources to finance a lawsuit. Still others will find themselves bankrupted in the process, whether or not they win their case.
People have difficulty financing their suits for a variety of reasons. Savings isn’t the only issue. Some are suing because they have been injured. They are unable to work and saddled with sudden medical expenses. For others, the length of a suit and trial simply drags on too long for even well-stocked savings accounts. Finances should not be an issue for those seeking justice, but for many they are anyway.
Enter Cash in Your Case lawsuit funding. Cash in Your Case is just one proven provider of this type of financing (sometimes called pre-settlement funding or lawsuit loans) but they are one that we know and trust. The process looks like this. Because cases can stretch out for weeks, months, and even years, you will arrange to get money from a lender, usually $500 to $100,000 or more, to help you make it until you receive your settlement. In most cases, you don’t owe anything at all in the event that you lose your case.
Most people who take out these loans do so in order to cover rent and mortgage payments. Many use them to pay for simple household expenses, like food. For those who have difficulty acquiring a loan any other way, or who can’t spare the time for a lengthy loan process with their bank, this is a good option. Most only borrow a few thousand dollars, though more and less are always options.
Lawsuit loan lenders ideally take on borrowers who have very good cases. They also give out only as much money as can easily be recouped out of the winnings gleaned from the case in question. Borrowers are expected to pay the full balance of their loan out of the total monies they are awarded; as such the interest rates for these loans are very high. For this reason, it is very important for lenders and borrowers to draw up loans in proportion to the likely payout of each case. For cash-strapped borrowers who borrow more than they will ultimately win, the results could be financially devastating.
Still, for reputable lenders, lawsuit loans are a sound financial product, providing fast financial reprieve from the daily expenses of individuals who can’t manage the cost of living while they wait for a court resolution. Potential borrowers should talk with their representation about the likely duration and outcome of their lawsuit before taking on a lawsuit loan. Properly planned, lawsuit loans are a convenient financial provision, easily paid back with some of the money awarded at court.