Category Archives: settlement loan

What not to expect from a lawsuit loan

The legal process can be a financially straining time for plaintiffs. When plaintiffs choose what type of funding they need, they often overlook issues that can complicate the loan process, issues that they wouldn’t find with a lawsuit loan. A few road blocks to look out for:

Credit and Employment checks. The traditional personal loan application process will likely involve a credit and employment check. This can create problems for plaintiffs, who are often out of work and pursuing a case involving personal injury, wrongful termination, or another incident that results in lost wages. Even if the plaintiff isn’t out of work, it is common for plaintiff’s credit to suffer under the financial strain involved. Credit and employment checks aren’t required for a lawsuit loan, which is approved based on the plaintiff’s case, not their financial history or current status.

Monthly payments. The legal process requires a lot from plaintiffs—court dates and preparation, meetings with their lawyer—while they maintain their life outside of the lawsuit as well. The plaintiff must keep up with monthly bills like utilities and car payments along with medical bills or other expenses related to the incident. If the plaintiff chooses a traditional loan with a monthly payment plan, these financial responsibilities can grow overwhelming. Another concern here is that the plaintiff may have to make monthly payments before the lawsuit concludes, without help from their settlement. The loan applicant should think about how many monthly payments they could make before the case settles, especially if they are unemployed. However, with a lawsuit loan, no payments are made until a settlement is reached, so plaintiffs don’t have to worry about monthly payments.

A long, complicated application process. Plaintiffs are already overwhelmed with paperwork from their legal case. They shouldn’t have to hold court to get a loan as well. If a plaintiff chooses a personal loan, they should expect to wait before receiving their funding. Banks and other personal loan lenders don’t tailor to the specific needs of plaintiffs, who often need access to the loan quickly to pay pressing expenses. The lender will take time processing the plaintiff’s personal information, credit history, and employment. If the plaintiff’s funding involves a home refinance or another mortgage related matter, then the bank may perform a home appraisal as well. But a settlement loan gives plaintiffs their funding fast, and the easy application can be filled out online.

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 lawsuit loans can help relieve plaintiffs of financial pressure

Many plaintiffs don’t realize what affect their finances have on their lawsuit. It is common for plaintiffs to struggle financially since they are often out of work, have medical bills to pay, or maybe they were experiencing hard times before their claim was even filed. Plaintiffs can cover these expenses with their settlement, however, bill collectors and creditors aren’t going to be waiting patiently for the lawsuit to conclude and will likely expect payment before the plaintiff receives their settlement. If the defendant is under too much financial stress, then they may accept a an unfair offer just to have the cash to pay bills immediately.

In this case, the plaintiff can use a lawsuit loan to help cover expenses until a settlement is reached. Lawsuit loans are taken out against the plaintiff’s settlement, and so the plaintiff can actually use their settlement to help take the pressure off of both their finances and the legal case.

A few specific instances that put financial pressure on plaintiffs:

The defendant is a company or an organization rather than an individual. Plaintiffs are responsible for their own legal fees, which can make other financial responsibilities even more stressful. But this creates even more of a hardship if the defendant isn’t also an individual. When the case is against a company–such as a slip and fall case against a restaurant or department store–then the plaintiff is fighting against a defendant with a bigger legal budget and no personal financial responsibilities. Since the defendant likely has the financial means to keep the case going for as long as necessary, this means that time is on the defendant’s side. Often, stalling the case in order to pressure the plaintiff into accepting a lower settlement is cheaper than a fair settlement. With a lawsuit loan, the plaintiff can take care of their personal expenses without jeopardizing their legal case.

The plaintiff must repay loans before receiving the settlement. If the plaintiff chooses to use credit cards or personal loans, they run the risk of having to make payments on them before the case reaches a settlement. Especially if they are out of work, this may not be a realistic option. Repaying a lawsuit loan is much more convenient for the plaintiff since the loan is repaid once the plaintiff receives their settlement.

Insurance isn’t enough to make ends meet. Plaintiffs aren’t always totally on their own—maybe insurance is helping to cover the medical expenses, or they are receiving help from another type of insurance while suffering from lost wages—but even this often isn’t enough to make ends meet, or isn’t dependable. If the plaintiff is heavily relying on insurance, then they can run into troubles if the insurance company denies coverage, which is common when the details of the injury or incident are being argued in court. With a settlement loan, the plaintiff can get the financial help they need quickly and they know exactly how much money they can count on.

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.

Four financial traps that plaintiffs struggle with

Financial strain is a common problem for plaintiffs. The stress of medical bills, car repairs, household expenses, and the necessities of everyday life can mean fighting a financial battle along with a legal one. One solution is a lawsuit loan, which they can use to pay bills while they wait for their settlement.

Some common mistakes that plaintiffs make when looking for a lawsuit funding solution:

Borrowing money from a friend or relative. When plaintiffs are in a tough spot financially, it is a natural reaction to look to friends or family for help. While this may work out for some plaintiffs, the sad truth is that borrowing money from a loved one regardless of the reason often results in conflict. Since lawsuits can last for years, the lender may not have realized how long the plaintiff has to wait for a settlement in order to repay them, which often strains the relationship. It is typically best to look for a professional lender so that the plaintiff can keep their financial and personal life healthier.

Using a loan that is repaid through monthly payments. Traditional personal loans are usually repaid through installments. If a plaintiff is looking for lawsuit funding, they are doing so because they are struggling to pay their expenses, but many don’t realize that they may be required to make payments on their personal loan before the lawsuit concludes. That means another monthly expense to worry about. When plaintiffs utilize lawsuit loans, repayment isn’t expected until after the plaintiff receives the settlement.

Relying on credit cards and other similar short-term fixes. When plaintiffs are busy dealing with the details of their lawsuit, they sometimes look right in their wallet for an easy and fast financial solution—credit cards. If a pressing expense can’t wait, it may seem so simple to just take out the credit card. But, as previously stated, the plaintiff can’t be sure when the lawsuit will reach a conclusion, and paying bigger expenses with credit cards is risky regardless of the reason. The longer it takes them to pay it off, the more the interest and fees will build up, and by the time the plaintiff finally receives their settlement, more than expected will be going to the credit card company. The same is true for other fast lending options like paycheck advances: they may be fast, but they’re not convenient for plaintiffs in the long run. If they are interested in settling their finances quickly, then lawsuit loans offer a quick application and funding process.

Letting bills wait. This is another easy trap for plaintiffs to fall into. Many plaintiffs don’t consider any solution at all and instead hope for a fast resolution to their case. This debt that can result from poor financial planning often effects plaintiffs years after the lawsuit is over.

Plaintiffs should be sure to research their options. If they decide that presettlement funding is right for them, then it could prevent falling into these common pitfalls.

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 plaintiffs can benefit from their lawsuit loan

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.

Three key points that every lawsuit loan applicant should understand

Even the age of information, miscommunications are still common between businesses and their clients. So when plaintiffs apply for a lawsuit loan, there are some key facts that they need to make sure are clear, especially since straightforwardness is a trademark of a reliable lender. Some key points that should be clarified before anything is signed include:

1. Fees. Getting clear information regarding the fees or interest that they will be responsible for concerning their loan is often a complaint of applicants. Less-than-reliable lenders will try to blur the exact amounts and timing of these fees, and as a result, plaintiffs find them as a surprise later on. Loan applicants will be expected to pay fees or interest for the service and it is essential to understand exactly how much they will be and exactly when they must be paid. The great thing about lawsuit loans is that since they are designed to be convenient for plaintiffs, there are no monthly payments. In fact, there are no payments until the case settles. During their case, the last thing a plaintiff should have to worry about is surprise payments on their loan. The whole convenience of a lawsuit loan is that it helps support the plaintiff during their lawsuit so that they can focus all their time and effort on winning their case.

2. The complexity of the application process.
Once applicants find a lender that they want to work with, they often jump into the application process without asking any questions first. Plaintiffs should know exactly what information will be required of them and what exactly the lender will be doing with that information. Is the process confidential? Will they be calling up references? What about a credit check? These are all questions that applicants need to ask before giving out any information, especially regarding the lender’s privacy policy. In addition, plaintiffs must keep in mind that they will be going through the legal process at the same time that they are applying for the loan, which most likely already involves a hefty amount of paperwork. Will the applicant be able to handle both? Simple, online applications can not only be easy but just as private as paper applications, and they can make the whole process run much smoother.

3. How long it takes to get approved. Plaintiffs apply for loans because they have pressing expenses like medical bills and other everyday expenses. So, they don’t have a whole lot of time to wait around and find out if their loan application was approved. When applying for a settlement loan, see if the lender makes a policy of letting applicants know whether they have been approved before too long.

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.