30 Nov The Pros & Cons of Lawsuit Loans
Plaintiffs in personal injury cases know that filing a lawsuit can be a burden – both in terms of finances and of time. Lawsuit loans, better known as legal funding, can fill the financial gap between accident date and settlement date. Settling can take between one and two years in more straightforward cases and even longer for more complicated cases. In the meantime, attorney fees and other expenses keep piling on. This is when you may decide to apply for legal funding. But how do you know if pre-settlement funding is the right option for you? Certified Legal Funding can help you decide if pre-settlement lawsuit funding is the right option for you.
Certified Legal Funding is among the leading providers of legal funding for lawsuits in Tampa, and shares some of the essential pros and cons of pre-settlement lawsuit loans.
One of the most significant benefits of pre-settlement lawsuit funding is that it is non-recourse funding, so if you lose your case, you are not obligated to return the pre-settlement funding. But if you apply for a bank loan, you will need to repay it regardless of the outcome of your case.
While the legal system may appear to favor financially stable individuals, that’s not always the case in reality. Even if you have less than a perfect credit score, you should not give up on pursuing legal funding for a lawsuit. Another major advantage of applying for personal injury funding is that there are no credit score checks because your chances of getting cash for lawsuits are based solely on the circumstances of your case.
There are only two requirements to apply for lawsuit funding. The first requirement is that you have an ongoing personal injury lawsuit. The second requirement is that you are represented by a personal injury attorney. And the application process is simple: all you need to do is submit your own and your attorney’s contact details, and Certified Legal Funding staff will sort out the details with your attorney so you can focus on recovery.
Legal funding is essentially an advance on your compensation, which means it is your money to spend. You can use it to cover medical bills, rehabilitation, mortgage, tuition, or other expenses. And there are no monthly fees and payments, so it can be a lifeline to those who need it most.
Legal funding is also a great way to get back on your feet before settling. This, in turn, will buy your attorney more time to negotiate fair compensation instead of settling for the first offer that comes your way. And the best part is that once your application is approved, usually you will receive the funds to your account in less than 24 hours.
Critics of pre-settlement lawsuit loans mention that the interest rate may be higher than what you would expect when applying for a bank loan. While the difference is minimal, it exists for a reason. Unlike bank loans, legal funding does not require a perfect credit score or collateral, so the providers face a risk that is higher than the risk banks face.
Some providers have unreasonably high interest rates, but Certified Legal Funding focuses on ensuring the lowest rates possible. To find out more about personal injury lawsuit loans, the application process, and interest rates, call Certified Legal Funding at 800 922-7439.