In basic terms, a lawsuit funding company will provide you with money as you wait for a decision in your lawsuit. This money can go towards paying your legal expenses, funding your day-to-date living or catching up on medical bills. This advance is a good idea for anyone who is unable to make it through until the settlement arrives, although you should be aware that interest and other fees will be applied to the final amount.
Waiting for a Settlement
Once you file a lawsuit, you are in for a bit of a wait. Many times, it takes years to receive your settlement, which could bring financial hardship if your injuries make it impossible to work. Even if you are able to return to work after some time, the lost wages are sometimes insurmountable and could lead to you missing mortgage payments or falling into debt. If you find yourself in this situation, applying for a settlement advance (also known as a lawsuit loan) might be your best option.
Defense Strategy
Contacting a lawsuit funding company might also work if the defense decides to stall the proceedings as much as possible in hopes that you will accept a smaller settlement. This is a common tactic when dealing with insurance companies if they know that you cannot wait for your settlement. They will make things very difficult for you in court and drags things on to the point where you have no choice but to accept the insurance company’s terms to pay for your expenses.
Be Aware of the Interest
Although legal financing does have its benefits, it is important that you are aware of the interest that you will be charged. You will have to pay a higher than average interest rate, since this is a risky proposition for the lender. The lender does not know if you will receive a payout in the end and the uncertain outcome works against you in terms of interest rates. Also you have not obligation to pay should your case not settle. As a result, you should wait things out as long as possible and only take this type of loan if you are in dire straits financially and have nowhere else to turn.
The Resolution Funding Group helps eliminate the financial burden that comes along with waiting for a lawsuit by providing legal financing.
