When Does Lawsuit Funding Make Sense?

Lawsuits can take time; bills and medical expenses pile up quickly especially for plaintiffs seriously injured and unable to return to work.  When insurance companies prolong the process or employ delay tactics it can lead to further financial devastation as the bills continue to mount.  Unless there are substantial savings to fall back on, plaintiffs often need financial assistance to survive until their case is resolved.  When this happens, the only options may be a traditional bank loan or lawsuit funding.  Let’s weigh the options to see which one is best.

Bank loans:

• Requires monthly payments.

• Require a credit check.  The bank will review your credit history for issues with delinquent payments and non-paid debts.

• Require that you be employed and current income plays a vital role in the approval process. You will only be allowed to borrow against a specific percent of your income.

• The application and approval process could take weeks.

• With a bank loan, you are required to pay back the loan, regardless of the outcome.

• Even though the plaintiff expects to receive a large settlement from his or her pending lawsuit, it is not an asset that a traditional lender recognizes 

• Interest rates are lower, but good credit and employment is required 

• Must be able to convince the bank you can repay the debt.

Lawsuit funding:

• Does not require credit checks and employment verification.

• Requires NO monthly payments.

• Has a quick and easy application process; funding can be available within 24 – 48 hours 

• Is approved based solely on the strength of your case.

• Is only paid back once the case successfully settles.  Lose the case and you owe nothing.

• Does not show up on your credit report.

• Is repaid from the proceeds of the settlement meaning you can improve your creditworthiness and reduce your total indebtedness!

• Has no restriction on how the money is used although most plaintiffs will pay their basic expenses such as rent, mortgage, medical bills, food, utilities, and more.

As you can see, lawsuit funding is most likely the better solution to ridging the gap with disposable funds until your lawsuit settles.  To find out how lawsuit funding can work for you, visit us online or call us for a free, no-obligation consultation.