Recently, many myths have emerged regarding pre-settlement loans, which are known to many as legal advances and lawsuit loans.
A lot of people get confused because they read specific laws regarding lawsuit loans somewhere. And then they hear a different story about legal funding from a family member, friend, or lawyer.
But, are they true, the way to bunk the myths, and know the facts of pre-settlement loans;
Lets’ check some of the ways
Talk To Your Lawyer
If you want to get the facts straight about these pre-settlement loans? Consulting with someone who has enough knowledge and understanding about the whole lawsuit cash advances is important.
For instance, if you are in the middle of a legal dispute; and you realize that you are cash-strapped because of the litigation costs. You can speak with your lawyer regarding these pre-settlement loans.
Your lawyer can understand the financial troubles that you are going through. Being a plaintiff in a case can prove to be tedious and time-consuming. If ever you have questions on how pre-settlement funds work, your attorney can certainly help in shedding light on the issue.
Aside from that, he can also present you with more financial options, depending on your needs.
Consult A Legal Financing Company
Other than your attorney, consulting a legal funding company is also another excellent way to learn about these cash advances.
If, for example, you want to know if you can qualify for a settlement loan, a legal funding firm can immediately review the strengths and merits of your case and help you understand the terms and conditions involved in a lawsuit loan.
Pre-settlement funding companies can also assist you with the repayment conditions of the said loan. It is important to get the specific numbers involved and the terms of the agreement with the firm so that you will know what you are getting yourself into.
Based on the terms of the offer, you can decide if the lawsuit funding is really for you or if you want to explore your options somewhere else.
Speak To Experts
Talking to qualified professionals regarding the subject of lawsuit loans is important because there are several myths on litigation financing out there.
For instance, the public often refers to these pre-settlement advances as loans, when in fact these are based on a non-recourse system. In a nutshell, this means that while traditional creditors can pursue you legally for not paying your debt. Lawsuit financing involves repayment only in cases when an extra-judicial reaches a favorable verdict.
If you lost the case, you do not need to repay the lending firm. The great thing about pre-settlement funding is that companies do not immediately require you to pay them back.
Unlike regular loaning companies which will generally send you monthly bills after giving you cash. Presettlement funding companies will wait for the court’s decision on your case before demanding repayment.