A lawsuit loan may appear like a lifeline to you if you are struck with a devastating personal injury and is waiting for a court settlement. But these loans are not as easy as they appear to be. If you have no other alternative left and lawsuit loans are the only option, then study in detail about what to expect before taking a decision. This article is a source of some information. These ideas are extracted from various resources including huffingtonpost.com
The procedure in short
· The client approaches the lawsuit lender.
· The lender picks up the case if the chance of winning is high.
· The client’s advocate and the lending company make negotiations on amount, interest, etc.
· Signs contract
· In winning cases, the client pays the lender from the settlement money he gets.
· If client loses, he does not have to repay
Expect high-interest rate and fees
The client will have to pay a substantial portion of the settlement money to the lending company. The government does not strictly regulate rates.
It gives you time
Clients will not have to say yes for lesser settlement money due to lack of financial backup. These loans help you with that.
Points to be cleared before going for loan
1. How long is the case going to be? The longer the tenure, the more the interest will be.
2. Are other alternatives available? Think of all other options such as a friend who could lend you money etc.
3. Inquire about the fees and interest rates
4. Make sure there are no unfair tie-ups between the lender and your lawyer.
Remember to ensure that these reviews are thoroughly done. Once the lender accepts your case, you get the loan amount very soon. So take time and do necessary homework before taking the decision.