The lawsuit cash advances on pending lawsuits are options that are available to plaintiffs who are involved in a litigation. Plaintiffs do pay their attorneys on a contingency fee basis and in the event that their case qualifying, they will be given a lawsuit loan on their pending lawsuit. The lawsuit loans are as well known as pre settlement funding.
Talking of cash advances on pending lawsuits or as alternatively known pre settlement funding, this is one that has had a lot of misconceptions surrounding it as a concept or idea. Read on in this guide and get some bit of clarity on these and the process at large.
Back to the basics of cash advances for lawsuits or legal funding, these are generally advances that are given to plaintiffs against the possibility or potential and anticipated award or legal fee. These various forms of legal lending can be given different names and some of the most common ones are lawsuit loans, lawsuit lending and pre settlement funding and these all refer to the cash advances given to the plaintiffs against a lawsuit waiting determination. Get more info here.
Going forward, one thing that is to be as clear is that these are not to be seen as traditional loans and as such the names that they go by, lawsuit lending, lawsuit funding, pre settlement funding all that point to the fact that they operate as cash advances on pending lawsuits and not loans as we know of. This is one point that is of a lot of significance to know of when it comes to the lawsuit funding needs even looking at the fact that they operate differently from the traditional loans, having no upfront fees, no monthly payments and as well they will not accrue points. You are not required to pay any fee for the application of the loan save for some of the fees that may be associated with the cash advance you are looking for like the origination and underwriting fees. You are not obliged to pay the advance back in the event that you lose your case. As such they are known as non-recourse loans as you are not under any obligation to repay the advance in the event that you lose the case or the proceeds from the same are less than what is under the terms of the funding contract or agreement.
By and large, the cash advances on pending lawsuits are considered ideal for those who may be in such cases where the settlements are likely to delay or where the cases are going to last more than some few months. As such, if you happen to have so exhausted all you financial options to help fund the case at hand to no avail for one way out, then you may be advised to consider applying for the pre settlement funding alternative. Discover more at https://www.britannica.com/topic/class-action.