A lot of things could go wrong during a lawsuit for the plaintiff, but one of the easiest to avoid is problems with their finances. Lawsuit loans can help plaintiffs avoid a number of financial roadblocks, including:
Foreclosure and Evictions. Many plaintiffs suffer from lost wages due to wrongful termination, injury, or other reasons pertaining to their lawsuit. But before a settlement is reached, these plaintiffs are still expected to pay everyday expenses like rent. If the plaintiff isn’t receiving a regular income, this can become a struggle. Things like insurance can sometimes help, but even that isn’t always enough, meaning some plaintiffs could experience foreclosure or eviction before receiving their settlement. This often forces plaintiffs to accept lower offers rather than taking the time to keep the legal battle going. Lawsuit loans can help plaintiffs make these payments and avoid drastic measures like eviction or foreclosure.
Losing collateral. With other forms of borrowing, plaintiffs must offer some sort of collateral, such as a house or a car, in order to get the loan. But if you get behind on payments, then you could end up losing your collateral. This would lead to even more financial strain, as many people depend on their car to make it to work, and the pain of losing a house doesn’t need to be explained. When you take out a lawsuit loan, the case is the collateral.
Mounting interest rates and inconvenient payment schedules. The problem with personal loans and credit cards is that you can’t be sure how long your lawsuit will last. The longer the lawsuit lasts, the longer you’ll have to wait to pay the loan, which means that the interest is just adding up. Even worse, banks or other lending institutions might require a payment before the lawsuit concludes and a settlement is received. Would you be able to make a payment without your settlement? With lawsuit loans, you’ll know beforehand exactly what fees you’ll be paying, and payment is required at the time of the settlement.
Credit and Employment Checks. Banks and other lending institutions will go through your financial history when considering your loan application. If you have bad credit and/or aren’t currently employed, it can get difficult to get banks to lend to you for manageable interest rates. Applicants for presettlement funding are judged base on the strength of their case, not their financial history. This means no embarrassing credit checks.
About the Author: Steven Medvin is the Executive Director of SMP Advance Funding, LLC, which provides lawsuit funding to individuals who need a lawsuit loan for pending lawsuits. For more information please visit www.smpadvance.com.