When Does it Make Sense to Get Lawsuit Funding?
If a quick Google search were to be believed, every single plaintiff out there should try to obtain a lawsuit cash advance. The benefits are numerous and there are absolutely no side effects, they’d like you to believe. Is that true?
Well, it’s not that simple. There are times where a pre-settlement loan is beneficial, and there are other instances when it may not be so. This blog post is by no means comprehensive, but here are some instances when it does (and doesn’t) make sense to get a legal loan.
We’ll start with when to hold off on funding:
Lawsuit funding should really be regarded as a last resort. Generally, if you have other options, you should pursue those first.
If you can borrow money (for free!) from a relative or friend
Not everyone is in this position, but if you have a wealthy friend or relative who is able to loan you money with no additional payback or at a very small interest, go for it. No company will be able to match a free loan.
If you are financially stable throughout the lawsuit
If you haven’t missed time from work and are able to continue earning income, a cash advance may not be right for you. There are sometimes substantial costs associated with funding. If you’re just itching to buy that new car, maybe rethink getting funding on your case. Lawsuit Funding is there when you need it, but don’t use it for “wants.”
If a jury has decided in favor of the defendant, but you’re appealing the verdict
This doesn’t mean you won’t win your appeal, but most funding companies see a bad verdict (even if it was for an innocent oversight) and they won’t consider moving forward with the application process. If the appeal is successful, it may again be open for consideration.
Prime Cases for Funding
Below are a few general guidelines for situations in which funding can make a lot of sense.
Your case is well established
What does this mean? Well, it means you have an attorney handling your case and you’ve already begun the process. For many cases, this means undergoing medical testing or treatment. For others, like discrimination or harassment cases, it could mean gathering liability documents. Largely, cases that happened yesterday are not yet solid candidates for funding (though if you’ve had a catastrophic injury, it’s still worth contacting a funder). Often, your attorney will take some time to gather information relevant to your case. Cases that have progressed further often qualify for lower rates and larger dollar values.
To pay for a medical procedure
Sometimes a doctor or hospital may not perform a needed procedure unless they receive upfront payment. They won’t accept a lien on the case, but getting this surgery is necessary for your health, and it would also greatly increase the value of your case. A funding company can be a huge help here. They often work out a deal where they fund the procedure, paying the provider directly, and they’ll take the risk of the lien. That way, you can still get the procedure you desperately need.
You are unable to earn income or your bills are becoming too much to pay
This is the main reason many people obtain funding. It makes sense here, too. If you are in danger of foreclosure or losing your car, it might tempt you to take a very small offer to settle the case out just to get the creditors off your back. Unfortunately, this means you are not actually receiving a fair payment for your pain and suffering. Taking a cash advance in this situation is very common and has helped thousands of people in a similar situation. It gives you a leg up on the defendant’s insurance company and will allow you to fight the case to the end.
You have a settlement in place but it could take months to get paid
It’s like you are running a marathon and you can see the finish line, but then they decide to move the finish line back another two miles. Rather than be pushed out of your apartment or forced to sell your car, a quick settlement loan can get you through to the end. Quite often these have lower payback requirements, too.
Ultimately, it’s up to you to know if it’s the right decision to get a cash advance. There are benefits of taking money up front and paying it back when the case settles, but there are also some drawbacks. The above lists should give you an idea of times when it would be very wise to get some financial help while your case drags on. If you think these apply to you, contact Plaintiff Relief immediately to begin the process – it is quick and you could have money in your hands in just a couple of days.