Did you know that over forty million lawsuits are filed in the United States by more than a million registered lawyers? But, of course, not all of these were civil lawsuits.
Civil lawsuits are generally those where settlements are reached. These include personal injury claims, car accidents, and similar filings. In 2020, the total number of civil lawsuits filed numbered 332,732.
Many fair settlements proceed through the necessary steps quickly, so funding isn’t delayed. Unfortunately, this isn’t always the case. When a settlement takes a while and money is needed now, lawsuit loans are an option many people pursue.
What Are Lawsuit Loans?
A lawsuit loan is a cash advance against a portion of your estimated settlement amount. These loans are often used when finances are tight during settlement negotiations. Especially when an accident or injury has stopped a person from working, lawsuit loans can be incredibly helpful.
Pros of Lawsuit Loans
There are many plus sides to getting lawsuit funding. The positives are discussed in detail below.
Tides You Over
When you get a loan, it can help tide you over while you await your settlement funds. In many cases, an accident or injury can cause significant financial problems. Bills, food, gas, and other responsibilities can’t wait until your funding comes in.
Provides Additional Negotiation Times
Financial difficulties can often lead to rushed negotiations. Rushed negotiations mean accepting lower bids out of desperation. When you explore loan funding options, you can afford to hold out for a better offer.
Pay Nothing if You Lose
Most lawsuit loans don’t have to be paid back if you lose your case. However, traditional loan types, like bank loans, will have to be paid back regardless. Therefore, you can take out a lawsuit loan without placing yourself in financial ruins should the unfortunate occur.
Cons of Lawsuit Loans
As with all significant decisions, there are a few downsides to lawsuit loans that should be taken into account. These cons are discussed in detail below.
Can Be Expensive
Lawsuit loans aren’t always regulated, which means they could come with high fees and end up being expensive. However, choosing a reputable lawsuit loan provider can help negate this risk. A reputable provider will charge a reasonable fee for the loan and won’t attempt to price gouge.
You May Not Qualify
Not every settlement case qualifies for a lawsuit loan. Each provider may have a different set of requirements. It’s essential to research these before relying on lawsuit funding.
More Questions About Lawsuit Loans?
Lawsuits loans can be a great way to stay financially afloat while awaiting a fair settlement for some people. However, it’s essential to take both the pros and cons into consideration before making a decision.
Do you have more questions about lawsuit loans?
Check out our other blogs. You’ll find articles on lawsuits, finances, and related topics to help you learn more on the matter.
