Many plaintiffs look to lawsuit loans to help them pay household bills, mortgage payments and other expenses during their lawsuit. The approval process is fast and easy—the application can be found online, and once plaintiffs provide the lender with the necessary documents, the case’s review will usually take 24-48 hours before approval. The question that many plaintiffs have after approval, however, is, “What happens next?”
The plaintiff’s attorney will be sent the contract. Much of the communication concerning documentation and other details of the case will be done through the lawsuit loan company and the plaintiff’s attorney. After the attorney sends the contract back, then the plaintiff could expect to have their settlement advance promptly. Lawsuit loan companies are used to dealing with attorneys and the unique financial situation of a plaintiff, so the process tends to be much more simple than with other types of lenders.
The funding will be transferred. The promptness that plaintiffs receive their lawsuit funding is a huge advantage of lawsuit loans. After the lawsuit loan receives the contact, the money can be wired to an account or a check could be sent through the mail. That means that the plaintiffs could start paying bills and other essential expenses without worrying about the typically longer closing process that comes with a traditional personal loan from a bank. The sooner the plaintiff gets their financial affairs in order, the more effort they can focus on their lawsuit. A healthy financial status is actually a smart strategy in the courtroom because it often allows the plaintiff to fight longer in order to reach a fair settlement.
Your attorney will be called for occasional updates. Lawsuit loans require relatively little effort from the plaintiff after the funding is received. The lawsuit loan company will call the plaintiff’s lawyer from time to time for updates about the case. With traditional personal loans, plaintiffs could expect at least monthly communication with the lender since those types of loans are usually structured to be repaid monthly. With lawsuit loans, there are no monthly fees to worry about, since payment isn’t received until after the case’s resolution.
The claim is resolved and the lawsuit funds are repaid. Another advantage to lawsuit loans is that the loan isn’t repaid until the case is resolved. The concern with traditional personal loans for plaintiffs is that the lender may expect payment when the lawsuit hasn’t concluded yet.
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.