A pre-settlement funding or lawsuit loan occurs prior to the actual settlement of a lawsuit. This occurs when plaintiffs have been sufficiently compensated in a lawsuit in which they have been awarded a settlement and are in need of money to be able to pay their legal costs and other expenses. The money advanced by the court is given to the plaintiff with the stipulation that the plaintiff must then repay it within a specified time, called a post-settlement period. This writeup expalins more about lawsuit loans so you may need to check it out.
If you're facing financial troubles, this type of financing from a lawsuit loan company may be able to help you. When receiving a pre-settlement loan, creditors will be looking at your current bills and what bills you may still be responsible for after receiving the settlement. Some bills, like your mortgage, will not be included. You will not be allowed to ask for any of the cash from this source. Also, these lenders cannot ask you to cosign or pay-back any of the funds advanced. They can however insist on a court decision prior to providing any cash to you.
The biggest benefit of pre-settlement funding is that it eliminates most of the hassle that often comes with limitations. You will only need to submit proof of the underlying facts in your lawsuit. The lender will provide the money directly to you. All court expenses, attorney fees and additional expenditures will be paid by the lender. It's much easier to eliminate your litigation expenses when there isn't any worry about proving or defending your position.
Another advantage of pre-settlement funding is that you will be able to reduce the impact of your credit rating and other financial records. When you have legal expenses, you will typically lose your credit rating as well as incur other problems. This is not the case when you receive funding from an advance. Lenders are not worried about your credit score and your ability to repay the loan.
You may be in a position where you are too far in debt to get out of debt. When you receive pre-settlement funding, you will be able to settle your debts without having to face bankruptcy. You also get peace of mind in knowing that if you don't settle your bills, you can lose your home or property.
If you have a personal injury case that has taken months or even years to resolve, you may be asking yourself why it took so long to resolve. Maybe your case went to trial and then the opposing party took an offer to settle the case. With pre-settlement funding, you can avoid having to go back to court and possibly lose more time and money. If you want to know more about this topic, then click here: https://en.wikipedia.org/wiki/Legal_financing.
