If You Are Considering Either A Lawsuit Loan Or Lawsuit Funding, This Guide Is For You! (Part 3)

In Parts 1 and 2, we discussed the ways in which plaintiffs could assess both the benefits and liabilities that accrue when pursuing either a lawsuit loan or lawsuit funding. In this article, we will discuss what happens once the pre-settlement loan is obtained.

In what manner are the settlement loans to be repaid? One of the significant advantages of obtaining this form of financial assistance is the fact that there is nothing that has to be repaid unless and until you obtain a settlement. Either the lawsuit loan or lawsuit funding will be repaid out of the settlement proceeds awarded in your case. Repayment, in most cases, will occur simultaneously with the settlement awarded in your case.

Lawsuit loans and lawsuit funding are non-recourse financial instruments. Therefore, the funding-entities will be reviewing your case very carefully to determine whether your case is worth their investment. Due to the fact that these are non-recourse instruments, if the plaintiff does not win their lawsuit, they pay nothing.

Clients are often relieved to find that there are no limitations as to how the settlement loan may be spent. Many clients utilize such financial assistance to pay their utilities, put food on their tables, etc. However, these instruments are extremely flexible and the plaintiff is free to utilize the proceeds in any manner he/she deems appropriate.

What happens if the plaintiff needs more money in the future (i.e., subsequent to the initial funding)? Plaintiffs may actually take a limited portion of the initial amount that the funding-entity agrees to advance. If this is the case, the plaintiff may simply go back to the funding-entity and request additional funds. However, the plaintiff may also submit a subsequent request to obtain additional funding in the future. (It is important to note that the funding-entities will require the plaintiff to disclose each and every lien that may exist prior to determining whether additional funds should be advanced.)

Both plaintiffs and attorneys are eager to find out whether the funding-entity exercises any control over the manner in which the case is prosecuted. No, the funding-entity plays absolutely no role in the manner in which the case will be prosecuted. In fact, once the monies are advanced, the funding-entity will have no involvement until such time that the case is finally settled in the plaintiff's favor and an award is issued.

It is quite reasonable that many clients are concerned about the manner in which their request for financial assistance will be perceived by their attorneys. It is important to realize that many attorneys are totally unaware of the fact that such financial-assistance exists. However, many attorneys who are familiar with this form of financing are quite eager to assist their clients in obtaining either a lawsuit loan or lawsuit funding to assist them as they pursue their lawsuit.

If you're currently a plaintiff, have you ever wondered why your attorney can't just loan you the money? There is little doubt that many attorneys would love to be able to provide financial assistance to their clients. However, attorneys are prohibited from doing so due to the possibility of a conflict-of-interest arising as a result of providing such financial assistance. (It is significant to note, however, that attorneys are often willing to assist their clients with case-related expenses.)

Clients often are concerned about the degree of confidentiality when obtaining either a lawsuit loan or lawsuit funding. The process is confidential. In fact, the defendant need not even be aware of the fact that such funding was obtained. However, in some cases plaintiffs may wish to make the defendant aware of the fact that underwriters experienced in such processes, have reviewed the case and have determined that the case, from their perspective, is meritorious. If your case were not meritorious, no funds would be advanced.

Settlement loans often prove to be extremely helpful to plaintiffs. When plaintiffs are hard-pressed financially, they are often eager to obtain either a lawsuit loan or lawsuit funding. Once such financial assistance is obtained, plaintiffs often find themselves much more confident about being able to pursue the lawsuit until a fair-and-equitable settlement is achieved!

Looking for more information about lawsuit funding? Please allow us to provide more information regarding lawsuit settlement loans. Please stop by today, and you may either apply online for a lawsuit settlement loan or review our lawsuit funding frequently asked questions archive.