If you’ve been wronged by another individual or entity, you very well might be considering taking them to court to get the compensation you deserve under the law. However, as anyone knows, going through the legal process can be expensive.
There are attorneys to pay for, time to take off of work, and paperwork to be submitted, paid for, and filed. All of this costs money. Money that you might not currently have in your possession, especially if you’re like the majority of Americans.
This is why getting a lawsuit loan has become such a popular move. A lawsuit loan can get you over the hump of a lawsuit until you have the compensation that you need in your possession. Need more info? Read on and we’ll walk you through what you should know.
What Is a Lawsuit Loan?
Lawsuit loans are a fairly new innovation in the legal world. They are loans that are offered to plaintiffs in the case who seem to have a relatively high chance of settling or winning their case.
There are many companies out there that will offer a loan for a lawsuit. One can apply with their case to these companies. The company will evaluate that individual’s chance of winning and the amount they are anticipated to take in.
They will then offer a loan amount to the plaintiff that should be available immediately. In return, the money is paid back after the lawsuit is settled and a funding fee is paid to the company on top of the return.
In most cases, no payments will be required until the case is fully complete.
How Much Is a Funding Fee?
The cost of taking out a lawsuit loan can vary from lender to lender. In most cases, one can expect the extra cost to be somewhere between 2% and 4% of the total compensation package per month that the money is out.
This sounds low, but if you have a particularly long lawsuit ahead, it can really add up. It’s important to consider how long your case is before taking this kind of loan out.
Failure to do so might have you paying triple the amount you’ve borrowed back to the lender! That price is likely not worth it for what you’ll be taking in.
Should You Get a Lawsuit Loan?
In what instances would be it a smart idea to get a lawsuit loan? It goes without saying, but if you’re in a situation where you can’t afford to bring a lawsuit forward on your own, a loan can be a huge help.
By the same token, if you’re fairly certain your lawsuit will only take a few months to complete, you can bet on the fact that the extra money you’ll owe will be fairly low.
With this in mind, it shouldn’t be all too difficult to make the decision to go forward. If you find yourself in a different situation, you might not need a lawsuit loan.
Borrowing to Pay for a Lawsuit
If you’re looking for a way to pay for a lawsuit you want to bring forward, a lawsuit loan might be the perfect solution. The above information can help you decide if this is the right move for you.
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