Five things not all plaintiffs know about lawsuit loans

There are many advantages to using lawsuit loans instead of using other forms of funding, but not all plaintiffs are aware of them before seeking it. There are some very important aspects to lawsuit loans that every plaintiff should know.

Lawsuit loans get plaintiffs the funding quickly. Typically, after filling out the paperwork, the review of the documents will take about 24-48 hours and then after approval, the money can be sent through the mail or can be wired. Getting the funding fast is a huge advantage with lawsuit loans, as many plaintiffs have bills and expenses that just can’t wait. Other loan application processes can be complicated and take a lot of time, and even then the money isn’t always awarded right away.

How easy the application is. The application can be found online and is simple and easy to fill out. Applicants will have to fill out standard basic information, briefly explain the details of the incident that prompted legal action, and will probably need to fill in some information concerning their attorney. The legal battle isn’t necessarily pleasant, and so lawsuit funding should be as easy as possible.

Plaintiffs can get lawsuit funding before the case is even filed. If a suit hasn’t been filed yet, the plaintiff will need to provide enough information for an evaluation of the suit’s value.

The process is confidential. With traditional personal loans, there are credit and employment checks and maybe even a few calls to references. Plaintiffs want the details of their lawsuit to affect the rest of their life as little as possible, and so this intrusion can make things stressful. Lawsuit loans are approved based on the strength of the case, not the plaintiff’s financial situation. Many plaintiffs may be in debt or unemployed due the the circumstances of their lawsuit, so lawsuit loans are often a better option for them.

There’s no collateral held. It’s a standard practice with other forms of lending for the lender to repossess the collateral, such as a car, when there is difficulty repaying the loan. But losing a car can make getting to work difficult, which can make paying the loan difficult. Not to mention, plaintiffs have to worry about meeting their lawyer and making court dates. The stress of repossession can make an already stressful situation even worse. With lawsuit loans, the collateral is the lawsuit, so plaintiffs won’t have those same concerns.

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.

How monthly loan repayments affect plaintiffs

Many plaintiffs seek funding during their lawsuit, and the forms of this funding is often structured to be repaid monthly. Monthly payments can be an inconvenience for a lot of reasons, a few of which include:

Plaintiffs may have to start making these payments before a settlement is reached. Every form of funding is different, but those structured to be repaid monthly can be incredibly inconvenient for a plaintiff. That’s because those repayments may be expected when the lawsuit hasn’t been resolved yet. Since lawsuits vary in the amount of time it takes to reach a settlement, going from weeks to years, lender’s aren’t going to wait around until repayment is convenient. Monthly payments without the help of their lawsuit settlement can wreak havoc on a plaintiff’s finances and then what happens if the plaintiff loses the lawsuit? Lawsuit loans, however, are structured differently. Repayment is expected at the time of settlement, so plaintiffs don’t have to worry about monthly payments, and the lawsuit itself acts as collateral.

Plaintiffs already have other monthly payments to worry about. Plaintiffs that seek lawsuit funding often do so because of lost wages relating to the lawsuit, such as if they have an injury from an accident or the lawsuit is workplace related. They use loans to make payments like medical bills, utilities, mortgage, car, and other living expenses, and making a loan payment on top of that every month can be difficult, especially considering the reasons the loan was taken out in the first place. We previously posed the question of how plaintiffs are supposed to make loan payments before a settlement is reached, but another good question is, how are they supposed to pay these everyday expenses and repay the loan monthly if the lawsuit hasn’t even been settled yet? Using lawsuit loans instead means that you only have to worry about other monthly expenses until a settlement is reached.

The interest will add up and the plaintiff’s credit could suffer. So, along with those loan repayments comes how the lender makes their money: interest. The longer a plaintiff takes to pay, the more interest they’ll add up, and even low small interest rates can take a big chunk out of the lawsuit settlement. And for each monthly payment that is late or missed, their credit could suffer or their collateral could be repossessed. Using a lawsuit loan can protect a plaintiff’s credit and they wouldn’t have the same concerns about mounting interest, as everything is paid when they have their settlement money.

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.

Three ways debt can affect plaintiffs and how lawsuit loans can help

While fighting their lawsuit, plaintiffs often find that they need help paying for necessities like household and medical bills. There are a number of ways that plaintiffs can get funding during a lawsuit, including insurance benefits and personal loans, but this sometimes results in debt regardless. Lawsuit loans, which can be obtained quickly and are repaid when a settlement is reached, often provide a better answer.

Debt is both a financial and emotional detriment to a plaintiff in the following ways:

It creates stress that takes focus away from the case. Whether a person is fighting a lawsuit or not, debt is a kind of stress that is always at the back of one’s mind and affects other facets of a person’s life. This is even worse for plaintiffs, who are already dealing with legal stress as well. Plaintiffs need to be able to focus on their lawsuit so that they can receive the money to repay those debts. But obtaining funding can also be stressful—personal loans often require repayment before the plaintiff has the settlement money and insurance companies sometimes use delay tactics or other methods to avoid paying. Using a lawsuit loan to pay pressing bills as soon as possible can make the situation less stressful.

It could force plaintiffs to accept a lower settlement. It’s actually a legal strategy of some defendants to drag out a lawsuit in the hopes that the plaintiff will run out of both the money and the will to keep fighting. If a plaintiff has debt collectors demanding payment as soon as possible, then they may have no choice but to accept a low settlement. But what plaintiffs need to understand is that they do have a choice. Lawsuit loans allow plaintiffs to use money from their settlement during the case, which can be seen as an investment for a better settlement. It takes away the defense’s financial edge by allowing the plaintiff to make ends meet so that they can fight until they see a fair settlement.

It could mean eviction or loss of collateral. Another thing that plaintiffs need to understand is that if debt is left standing for too long, creditors will use other ways to repay the debt. This means an action like repossession or eviction. If it’s a personal loan that must be repaid, and the plaintiff offered their house or car as collateral, then the plaintiff could lose it even if they are expecting to receive a settlement soon. Using a settlement loan to repay debt could prevent the situation of finding oneself without a home or a vehicle.

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.

Why some plaintiffs accept low settlements

It’s common for plaintiffs to begin their lawsuit enthusiastically and then, by the end, feel as though they are running on fumes. There are many factors that my lead a plaintiff to accept a lower offer than they feel is fair, but obtaining lawsuit funding can help prevent this. The main reasons that plaintiffs accept these lower offers include:

They are suffering from lost wages. Many plaintiffs pursue legal action because of workplace related incidents such as injuries, sexual harassment, and wrongful termination, among others, and are no longer working for the company. In many cases, finding re-employment can be difficult and the plaintiff could struggle to make ends meet until the settlement is reached. Plaintiffs need to understand just how long they might have to wait for their settlement and need to have a plan to make ends meet in the meantime without a steady paycheck. These lost wages cause many plaintiffs to accept lower offers than what they deserve.

They have loans to repay. If a traditional loan is used for funding, then plaintiffs could run into repayment issues because they may not have their settlement available when the payments are expected. Lawsuits can drag on for years, but banks won’t be waiting patiently. Some plaintiffs accept low settlement offers because they need it to repay the loan that they used while awaiting their settlement and any interest accumulated along the way. Lawsuit loans are tailored for plaintiffs, and so repayment is expected after settlement. There won’t be any stressing over having to make a payment before you’re ready.

They have pressing bills. While executing their lawsuit, plaintiffs must make car payments, mortgage payments, deal with family expenses, and any other household expenses that are expected of them even when they aren’t anticipating a lawsuit settlement. On top of that, they may have medical bills if their lawsuit is injury related. When they have creditors on their backs, plaintiffs are more likely to accept a lower offer than what they were hoping for. Obtaining presettlement funding can provide plaintiffs with a way to pay these bills and keep fighting for a fair settlement.

The legal process is too stressful. Along with the financial strain, plaintiffs can experience physical and emotional exhaustion during the lawsuit. They’ll have to spend a lot of time not only in court but preparing for it. The defense might pry into the plaintiff’s private life and try to make things more stressful for the plaintiff because they know that lawsuits can wear on the plaintiff. Some plaintiffs feel so bogged down by the legal process that they accept a low offer just so that the ordeal is over. While lawsuit loans can’t make this exhaustion disappear, having a stable financial life can make plaintiffs feel less weighted so that they can save their energy for the courtroom.

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.

Why some workplace related lawsuit plaintiffs struggle, and how lawsuit loans can help

The plaintiffs of workplace related lawsuits are in a special situation because if they aren’t receiving a steady source of income, fighting a legal battle can become difficult. The plaintiff is most likely not being paid wages by the defendant during the lawsuit and this can put a real strain on the plaintiff because executing a lawsuit requires adequate funding. Here’s some financial traps that a lot of these plaintiffs fall into, and how lawsuit loans can help:

1. They might struggle to obtain a personal loan because they aren’t employed. These kinds of plaintiffs don’t have any income because of the incident that resulted in the lawsuit. In order to execute this lawsuit, they need a source of income to support themselves while they wait for a settlement to be reached. However, in order to get this funding, they must pass a credit check and may be denied the loan if they aren’t employed. Sadly, many lawsuits fall through because the plaintiff couldn’t get together funding or they’re forced into taking a lower offer than they were hoping for because of mounting debts. When plaintiffs take out a lawsuit loan, they are borrowing from their future settlement. Lawsuit loan applications mostly concern themselves with the details of the case and not the plaintiff’s financial history or employment.

2. They might not be able to find another job while they wait for their settlement. The plaintiff could be unable to find a new job if they’re injured or may have trouble finding an employer that isn’t intimidated by the plaintiff’s legal battle— in an already tough job market. Many employers won’t want to work around a plaintiff’s court schedule and if they do, the plaintiff has to deal with all of those lost hours spent in the courtroom instead of the workroom. A lot of times it’s just easier to hire an applicant with no legal baggage instead. This can be frustrating for plaintiffs who are relying on this source of income to support themselves during the lawsuit. Many plaintiffs in this situation find that lawsuit loans provide a lawsuit funding solution to help them get by while they await their settlement.

3. The defendants are typically larger companies with the time and the resources to drag out the case. Workplace injury and wrongful termination cases are fought against companies who can afford the best lawyers—they may even have their own legal team—and can also afford to drag the case out for a long time. These defendants are in a completely different financial situation that gives them a legal edge. They may have even fought similar lawsuits in the past and won. Plaintiffs need to not let themselves get intimidated by the resources of large companies and know that they have resources of their own to rely on. Using a lawsuit loan can take away the defendant’s legal edge and allow the plaintiff to fight the legal battle longer and get the settlement that they deserve.

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.