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.