The Advantages and Disadvantages of Lawsuit Loans – An Overview
Individuals who are in the midst of a claim have the ability to seek a cash advance or lawsuit loan. Before deciding if a litigation fund is a good option, it is important to understand the advantages and disadvantages of either choice. Many individuals who are suffering escalating medical expenses or don’t have the sufficient income to continue with other expenditures involved with a lawsuit could seek to obtain a lawsuit cash advance. Regrettably, lawsuit loans will not always present the best opportunity for those in need. This article will compare the advantages and disadvantages involved with lawsuit funding. These will help those in need consider the best option.
If you are in need of a cash advance and are seeking to obtain a lawsuit loan, consider your options by speaking to a specialized attorney. An attorney with the right experience can help you navigate your options, which could lead to the best choice in accordance to your specific situation. Further, experienced attorneys may have other resources to help during your case which could reduce the need for said loans.
Understanding Lawsuit Loans
Being involved in a lawsuit can be time-consuming and very costly. Individuals who are involved in personal injury cases are more likely to suffer debilitating injuries that could affect their ability to earn an income. Personal injuries can also implicate financial stress as a result of medical expenses with long hospital stays and medical treatments. While claimants are waiting for the case to settle, many financial burdens may arise causing the victims to consider seeking lawsuit loans.
When obtaining a lawsuit cash advance, a company will purchase the rights to a portion of the money recovered, usually with very high interest rates and usually to the great disadvantage of the client/injured party. In exchange, the claimant will receive an upfront cash advance while the lawsuit is pending. The following are important factors to consider if you are seeking a cash advance from your lawsuit:
Lawsuit Loan Advantages
Individuals who are depending on the settlement to provide them with the income necessary to pay for mortgages, expenses and/or other needs will feel cash advances would be beneficial. And an advance payout might also be thought useful with regard to time. Many cases can take several months, or even years, to negotiate or finalize. Sometimes, the longer periods are required to obtain a favorable settlement for the plaintiff. Obtaining a cash advance can help a claimant continue through the process, seemingly without financial worry. This could be especially useful if mortgages are becoming past due, or other personal or real property is in jeopardy. Advances can bring payments current and keep them that way until financial recovery has come to fruition.
Lawsuit Loan Disadvantages
Unfortunately, lawsuit loans may not always be a reasonable choice, even if the claimant is under financial duress. As previously mentioned, many lawsuits can take a long time for a settlement to be reached, and companies that offer lawsuit loans will have substantial interest rates that could cost the claimants thousands of dollars that would otherwise have been theirs.
It is also worth noting that lawsuit loan companies are not very interested in the outcome of the case. Claimants can find it difficult to work with a lender. In some cases, these loans can also add extra work to the case overall, as many of these loan holders want to become active participants in the case, creating extra layers and issues.
The Bottom Line: Consult With a Specialized Attorney
Financial burdens can present a multitude of challenges and difficulties for many claimants. Claimants who are head of their household can also find it difficult to sustain the longevity of a lawsuit. If you, or someone you know, has been injured and, as a result, is suffering financial difficulty and is contemplating obtaining a lawsuit loan, consider seeking the professional advice of an attorney who can guide toward making the right decision.
The attorneys at Heiting & Irwin are highly experienced with issues involving lawsuit loans and personal injury claims in the State of California. If you are considering borrowing money against your case, obtain the expert advice of a specialized team of attorneys today. As mentioned above, there may be other options available to help keep a victim financially stable until a case comes to conclusion