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.