Lawsuit Cash Advance Explained
A lawsuit cash advance is when a company gives you money before your lawsuit ends, that you pay back only if you get money from your lawsuit.
For example, let’s say you slip and fall in a store and hurt your back. You have $5,000 in medical bills and can’t work for 6 months while you recover.
You decide to sue the store for your injuries. You hire a lawyer to file a lawsuit against the store. The case will take time to finish.
Meanwhile, you need money now to pay your bills since you can’t work. This is where a lawsuit cash advance could help.
You find a legal financing company and apply for a cash advance against your pending lawsuit. The company reviews your case and approves you for $10,000, which is about 10% of what your claim may be worth.
The company sends the $10,000 cash to you quickly, often within a month. You can now use this money to pay your urgent medical bills and living expenses while your case goes through the legal process.
If you win or settle your lawsuit later for say $100,000, the financing company takes their $10,000 cash advance plus fees out of your total settlement. But if you lose your lawsuit and get nothing, you don’t have to pay back the advance.
So basically a lawsuit cash advance gives you money now based on the possible value of your lawsuit but is only repaid if your case succeeds in the end. It helps cover urgent costs as you wait for your lawsuit to resolve.
How Does Lawsuit Cash Advance Work?
Let us walk through step-by-step how these lawsuit cash advances tend to work, based on what we have seen firsthand with clients in the litigation financing segment.
So you’ve been injured – say, in a nasty car accident that totaled your vehicle. Thankfully you hired a great personal injury attorney who believes you have a strong claim to compensation from the reckless driver.
But here lies the problem – lawsuits take time. Could be months or even years before you get any settlement money. Meanwhile, you have stacks of medical bills piling up, you’ve missed work and aren’t getting paid, and you still have to feed your family and keep the lights on.
In comes the lawsuit cash advance company. You apply and explain your situation – the accident details, your injuries, and losses. If it’s a solid case, they will likely approve you for an immediate cash payout. Could be a few thousand bucks, or maybe even tens of thousands if it’s a large lawsuit.
While not perfect, this quick cash can be a lifesaver for clients. They can use it to pay the rent and bills, get much-needed medical treatment, or avoid drowning in debt. For many, it’s absolutely necessary to bridge the gap during their lengthy legal battle.
Of course, the cash advance comes at a steep price. The company will take their large cut – usually 30% to 50% – from any eventual settlement you get. The higher the fees and interest, the larger the bite they take. It leaves you with less money in your pocket in the end.
But if it helps you financially survive and stay the course for maximum compensation, a lawsuit cash advance can be worth it. Just know what you’re getting into and make sure your case has merit. Because if you lose outright, you owe the company nothing.
How To Use Cash Advance On Lawsuit?
We understand how stressful and financially draining pursuing a lawsuit can be. But we have already helped many clients in this situation. Bills piling up, jobs lost, savings wiped out – it’s a nightmare.
So what do folks use these lawsuit cash advances for? The money is usually a lifeline to pay the rent and keep the lights on. Pay for that surgery insurance won’t cover. Fix the car to get the kids to school. Buy groceries and gas just to survive each day.
Generally, clients use the money wisely just to get by during the legal process – and some not so wisely. It’s not meant for fancy vacations or shopping sprees. That will backfire later.
Keep good records. Use it for true needs – medical bills, childcare, transportation, debts haunting you. Get advice from your attorney. And know a decent person reviewing your case will understand if the money allowed you to recover and seek fair compensation for what happened.
So don’t feel guilty if an advance helps you pay for what really matters during an extraordinarily difficult time. No need to stress over every little expense. Just focus on getting your health and life back on track. And trust that justice will prevail in the end.
What Are The Requirements To Get Lawsuit Cash Advance
When clients ask about getting a lawsuit cash advance, we tell them approval really boils down to 3 key things:
First, you need a strong liability case against the defendant. We are talking clear-cut negligence – car crashes, medical malpractice, dangerous products. Stuff where fault and responsibility can be proven. Not minor slip and falls or weak claims.
Second, there must be major damage. Big medical bills, lost income, and large amounts of pain and suffering. The bigger your demonstrable losses, the better chance of approval.
And third, you need an experienced attorney willing to fight for maximum compensation. A respected lawyer who can validate that your case has merit. One who will work collaboratively with the financing company.
Beyond that – cooperate fully, provide documentation, and don’t hide anything that could tank your case. Be upfront if you’ve filed lawsuits in the past. And show you are committed to repaying the advance.
A company needs to believe they are investing in a strong claim with a good chance of a sizable settlement. That’s how they get comfortable putting out big cash even before your case resolves.
What Will Be The Cost Of Cash Advance Against Lawsuit?
Getting a cash advance against your lawsuit can be a huge help, but it comes at a price. The interest rates are generally dependent on factors like the strength of the case and the expected period of settlement. Any specific interest rate cannot be mentioned since it varies from case to case.
But as longer your case drags on, the more the interest snowballs. Month after month it keeps building on itself. Some folks think it’s “free money” at first. But the interest rates do add up to the value of a settlement in case the lawsuit takes decades to settle.
Therefore, at ECO we advise you to take the minimum amount you absolutely need to get by. Don’t get greedy. Hope we can resolve your case sooner than later.
Cash advances are not free. Far from it. They help in tough situations, but understanding the high costs is crucial.
Apply For Lawsuit Cash Advance From ECO
If you have a pending injury lawsuit then apply for a cash advance against their case. Once you get the fund you can use it to pay medical bills, cover living costs, and avoid quick, low settlement offers. We have been in the industry of pre-settlement financing for more than a decade. Our lawsuit cash advance offers some unique benefits such as a fast process, no credit checks, no employment verification and you repay only if you win.
With the simple application you as a plaintiff can apply for cash advances against many types of lawsuits such as personal injury, slip and fall, car accident, or any commercial litigation. Our company provides simple terms of cash advances on lawsuits with the lowest interest rate lawsuit loans. Apply with us today by filling out an online form or give us a call at our toll-free number 800-961-8924.