How do lawsuit loans help

See the benefits of getting a loan against your lawsuit.

Borrowing money from your lawsuit has many advantages including settling for a better settlement while you pay for your expenses.

Pre-settlement lawsuit loans
Pre-settlement lawsuit loans

Lawsuits can end up being long and exhausting legal processes dragging victims to one of the most challenging times of their lifetime. If you are a plaintiff with a personal injury, wrongful imprisonment, or corporate litigation, it is more than likely that you are going through financial upheavals that weren’t accounted for. Unfortunately, while waiting for your pending settlement award, your financial situation could break apart your wallet. Certain factors can lead to a long settlement, such as insurer delays, court/attorney scheduling conflicts, litigation, arbitration, etc. One thing is for sure; you should not settle for less than you deserve. Many times, the offered settlement is not enough, and eventually, plaintiffs who are struggling financially end up accepting a low valued compensation. Once you receive a low ball settlement offer in this phase of your lawsuit, you forfeit the right to pursue further financial compensation.

What are the advantages of getting lawsuit loans?

While we often think of borrowing from our lawsuits as a wrong move, the reality is that there are advantages to getting lawsuit loans. Some lawsuit loan benefits include no monthly payments, no risks and potentially lower interest rates with reputable funders, and the ability to meet expenses you might otherwise have trouble covering due to your lawsuit. Lawsuit loans are not suitable for every plaintiff involved in challenging litigations, but they can be a smart move, depending on your situation. Below is what you need to know about lawsuit loans and the potential benefits of getting one. 

Lawsuit funding has advantages that are very appealing to legal consumers who may have previously had trouble borrowing from family members or financial institutions. 

Lawsuit loans can be used for the most essential purposes.

The pre-settlement funding industry was invented roughly two decades ago – to help people like you, involved in severe cases, in your time of need. When you get a lawsuit loan, it can be used for household and emergency expenses. However, while you can use a lawsuit loan for essential matters, it’s still an investment made into your lawsuit, and you might want to be wise about using your pre-settlement funds. It’s simply not smart to use them for things you want like clothes or vacations. It’s best to use your loan on your needs rather than something you don’t need; remember, a lawsuit loan is coming from your lawsuit, and the money must be used accordingly.

Some of the ways you can use lawsuit loans are:

  • Pay off a credit card bill
  • Family expenses
  • Car repossession
  • Business expenses
  • Rent or mortgage

Medical expenses.

Suppose you have a medical emergency or medical bills you cannot pay due to your personal injury lawsuit and are unable to pay the full cost in cash upfront. In that case, financing your litigation (lawsuit loans) can be a temporary solution to keep you afloat while your case settles in court. You can qualify for a higher loan amount with a lawsuit loan if your injuries are severe, which may be necessary for your health expenses and any other emergency matters at hand.

How It Helps 1

Borrowing legal money is free of risk.

Lawsuit loans are non-recourse loans provided to plaintiffs involved in less risky litigations. This is because if, under any circumstance, your lawsuit does not settle favorably, you won’t have to repay the funds. Not all lawsuit loans have no risk, and some companies will charge up to 200% a year. You may prefer to take out a loan from a company that charges non-compounding interest rates at no more than 3.4% a month. In addition, using your lawsuit as collateral is less attractive to the defendant —that may end up questioning why you are borrowing from your lawsuit. Remember, just because a lawsuit loan doesn’t have any risks doesn’t mean the consequences are less dire when your settlement reaches a successful conclusion. Choose a company that won’t eat up your whole settlement when you finally get your payout. Lawsuit funders can still take all legal measures to collect from you if you sign a contract with 100-200% interest rates.

100%

risk-free.

only pay

if you win your case.

No monthly payments.

We see loans as the money we borrow that we will have to pay back monthly. Your credit history may not be good and this may affect your eligibility to get a loan from a traditional financial institution. Even if you get approved for a personal loan or a credit card loan, monthly payments and fees will put additional stress on a plaintiff that is not currently working. Legal funding advances work differently. 

These loans do not have to be paid monthly, so this takes a lot of pressure off the victim’s shoulder. The legal advance is only paid back when and if the case settles in your favor. 

Settle for more.

It’s common knowledge that insurance companies fund certain news outlets to advertise against lawsuit funding due to very few companies’ high exaggerated costs. These tactics mislead plaintiffs to settle their case for an undervalued settlement or, even worse, lose the case. One of the advantages of lawsuit loans is that you may not have to feel pressured into settling your case for much less than you deserve because you don’t have the money to get by with your finances. Legal funding can be used to make up for anything you want, such as loss of income. It can help you from falling into a deep financial crisis that you can’t recover from, allowing you to wait for a better settlement. 

It’s safe to conclude that lawsuit funding can be the bridge to settling your case for better compensation.

More benefits.

Given the increase in litigation financing companies, the good news is that you can apply and receive a cash advance from your lawsuit within days. However, a lawsuit loan should not be an excuse to go out and spend on things you do not need, or even worse, unnecessary luxuries. Instead, a lawsuit loan can be a helpful tool for a smart plaintiff who has a legal action in place and a plan to temporarily settle their debt while the attorney successfully wins the claim. The desperate need for a financial fix because of a personal injury case or any other type of lawsuit, drag victims down to significant debt. When your financial situation is terrible, and your lawsuit claim is still on hold, consider lawsuit funding. 

Ready to get started?

We have helped hundreds of families recover from their legal financial crisis through pre-settlement funding. If no one else is there to help you, and you have a valid claim, then you have the option to opt for a lawsuit advance. 

Baker Street Funding helps you Get Your Legal Funds Now.

Select a legal funding product to get started:

Attorney
Requests

Lawsuit
Loans

LAWSUIT LOANS APPLY

Litigation Funding

Post-Settlement Funding

Surgery Funding

Or just call us at 888.711.3599 to apply.

Baker Street Funding helps you Get Your Legal Funds Now.

Select a legal funding product to get started:

Attorney
Requests

LAWYERLOANS APPLY

Lawsuit
Loans

LAWSUIT LOANS APPLY

Litigation
Funding

LITIGATION LOANS APPLY

Post-Settlement
Funding

POST SETTLEMENT LOANS

Surgery Funding

MEDICAL LIEN LOANS

Or just call us at 888.711.3599 to apply.