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.