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The Pros and Cons of Lawsuit Loans

Most people with pending lawsuits need more income than they have available to give their lawyers sufficient time to negotiate a proper settlement.

In other words, if you rush your lawyer to negotiate a settlement because you need the money now, you’re going to get less than you have coming to you.

Accepting an insurance company’s lowball settlement offer is enticing to cash-strapped plaintiffs because it alleviates their financial stress.

However, the settlement is often only a fraction of what they might receive compared to having the financial resources to wait through the entire litigation process.

Are Lawsuit Loans Right for You?

Lawsuit loans offer a potential solution by giving you access to cash for living expenses, so you don’t have to rush to settle your lawsuit.

To qualify for a lawsuit loan, you must have an attorney and be a plaintiff with a pending legal claim. Even if you qualify, is it right for you? 

As good as a cash advance sounds, it may also come with a very high price tag, so a look at lawsuit loan pros and cons may help you to make an informed decision rather than reacting merely to financial pressures.

Once you decide that lawsuit loans are right for you, Injury Wallet can help you find the lowest lawsuit loan rate.

Lawsuit Loan Pros and Cons

The biggest advantage offered by lawsuit loans is that there is no repayment until the settlement of your lawsuit.

Borrowing money from a bank requires a credit check, income verification, and other burdensome application steps.

Additionally, it requires a commitment from you to repay it, which your current financial situation probably doesn’t allow you to do. 

Instead of you being on the hook for a personal loan, a lawsuit loan is paid from settlement money when the lawsuit concludes.

If you cannot fully repay the lawsuit loan because the settlement amount is less than expected, the loan funding company cannot look to you to repay the money.

Additionally, a lawsuit loan provides access to cash fast. After a quick application process, the loan company contacts your attorney to confirm your potential settlement amount and other case details.

On approval, most companies fund you in as little as 24 hours.

If this all seems too good to be true, then it’s prudent to take a step back and consider the disadvantages of getting a lawsuit loan.

The biggest disadvantage to lawsuit loans is that they are expensive.

Even though a lawsuit loan company doesn’t charge monthly payments or an application fee, it does charge interest from the date of advance until your settlement or judgment pays out.

It is common for lawsuit loan companies to charge as much as 8.99% compounded monthly.

Because of this, if a lawsuit loan is right for you, it makes sense to wait as long as possible before applying for a lawsuit loan.  

We Can Help Get the Lowest Possible Lawsuit Loan Rate

Injury Wallet is here to assist you during financially challenging times as you await the outcome of your lawsuit.

Before we can find you the best rate, we need details about your lawsuit.

Our patented lawsuit loan questionnaire takes just a few minutes to complete and gives us everything we need to get to work finding you the best rate.

Contact us online or by phone at 866-985-0472.

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