The Strategy Used by Complainants
A settlement loan or settlement funding is the strategy that is used by the complainants to acquire the sum of money that they need while their lawsuit is still going on. We all know that for an individual to get the settlement money, they still need to go through all the hassles of filing a legal case, pursuing it, and of course, winning it.
It might take long months, worse, long years, to close the case. The period of time waiting until the final verdict of the case might put the complainant in financial trouble. Fortunately, there is what we call settlement funding that gives the opportunity to the complainants to receive cash advances for their future settlement money or funds to pursue their ongoing lawsuit.
A Non-Recourse Arrangement
Though it is called a settlement loan, it is not counted as a loan. It is not even within the scope of lending laws. The reason why it is not considered to be a loan is due to the fact that it comes as a non-recourse arrangement.
A non-recourse arrangement is a deal that does not require the plaintiff to pay the sum of money that they owe from the lawsuit loan company if ever they lose the lawsuit. However, if they win, then they are obliged to pay the lawsuit loan company a portion of what they will receive as settlement money. Always remember that the amount they owe from the lawsuit loan company is always lower to the amount of money that they will receive from the final settlement of the case.
Personal Injury: The Predominant Case for Which Are Lawsuit Loans Are Made
Cases that involve personal injuries are the most predominant type of case for which lawsuit loans are designed. Some of the cases that are considered to be predominant for which a settlement loan is made are the following:
- Jones Act case
- Mesothelioma case
- Police Brutality case
- Trans Vagina Mesh case
- 3rd degree burn case
- Yaz cases
- Tractor Trailer accidents
- Appeals case
The cases stated above are just a few of the many cases for which a settlement loan is made for. There are still many cases that can qualify as a lawsuit for lawsuit loans. If you do not know whether a case qualifies for it or not, then it is best to contact a lawsuit loan company and to seek legal advice from a reliable lawyer at the same time.