When plaintiffs need to pay expenses before their lawsuit concludes, they often find themselves in a bind since they may be out of work or just can’t keep up with mounting expenses until the case is over. A useful tool available to them is a lawsuit loan, which allows them to borrow from their settlement to pay medical bills or other payments that can’t wait for the case to be over.
Lawsuit loans help plaintiffs reach a settlement on their own terms. Of course, no one has complete control over the legal battle, but plaintiffs often find themselves in a tough spot because of pressing bills. When medical bills or other necessary expenses need to be paid, the plaintiff is more likely to accept a lower settlement. This is especially true for plaintiffs who file a suit against a company or another party that has a bigger legal budget than the plaintiff and can afford to keep the proceedings going for longer. The same policy applies for when the plaintiff files a claim with an insurance company
to help pay for car repairs, medical bills, or other issues related to the lawsuit—insurance companies know that the longer it takes to process the claim, the more willing the plaintiff will be to accept the funding that they offer. Lawsuit loans make it easier for
plaintiffs to see a fair settlement.
They can also help keep the plaintiff focused on the lawsuit. Even for people who aren’t in a lawsuit, the state of a person’s finances can be a huge source of stress that causes a distraction from their job or home life. On top of this, plaintiffs have court dates, meetings with their lawyer, and they are also dealing with the effects of the incident for which they are filing a claim. This could mean something like healing from an injury, recovering from emotional stress, or overseeing repairs to their car or home. When plaintiffs aren’t spending their time worried about money, they can do all of this more
effectively. When they are focused on their lawsuit, they are less likely to get frustrated.
Some plaintiffs look for personal loans from banks to help them make payments during the lawsuit, but they must think about how this means a lengthy, complicated application process and monthly payments to worry about. With a settlement loan, there will be some communication between the lender and the plaintiff regarding the progress of the lawsuit, but since payment is expected at the time of the settlement rather than a time frame that a bank decides upon, the plaintiff is free to focus on their legal situation instead.
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.