What You Need to Know About A Lawsuit Advance
If you’re like most people, an accident has the potential to cause significant financial setbacks in your life. Out-of-pocket expenses such as lost wages from having to take time off work due to injuries or even job loss quickly add up, and being consistently strapped for cash during the aftermath of a car crash has the potential for negative long term consequences, and those involved often find themselves playing catch-up for years.
Fortunately, there are services offering legal funding in California designed to help you navigate the tricky financial waters following a major accident. However, there are several things to consider before making a final commitment to borrowing money. Following are three questions you need to consider before finalizing a lawsuit advance agreement.
1. What’s Your Financial Situation?
If it’s just a matter on cutting costs for awhile until your claim is settled, you might be better off simply tightening your belt on a temporary basis. For instance, if you simply need a small amount such as $1500 to take the edge off the situation, borrowing $15,000 against your claim wouldn’t be in your best interests. On the other hand, if you’re missing mortgage, rent, or car payments because of circumstances caused by the accident, it’s time to seriously explore lawsuit-funding options.
2. Will You Have to Repay the Loan if You Lose Your Case?
You should never accept a loan of this nature that requires repayment in the event that you don’t win your case — no reputable litigation funding company operates under this condition. You should also go over the fine print to ensure that the loan comes with no hidden legal fees that will provide an unpleasant surprise at some point down the road. Keep in mind that if you opt to depend on credit cards and personal loans to get through this difficult time of your life, those obligations will have to be repaid even if you lose your case. Furthermore, they can have a serious negative impact on your credit rating. This is why legal funding is a better choice over lawsuit loans.
3. Is There Clear Liability Involved?
The presence of clear liability is one of the major considerations for those seeking legal funding. Your lawyer will be able to offer advice on whether or not your claim is likely to be viewed as viable by a litigation funding service. It’s also important to keep in mind that personal injury lawsuits may be futile if the defendant doesn’t have adequate insurance.
Unlike a traditional lawsuit loan, pre-settlement funding is designed to help those during all stages of their lawsuits with out having to pay any money back until the case is settled. Lawsuit loans, on the other hand, you have to pay monthly fees. As an added bonus, because pre-settlement funding isn’t classified as debt, it doesn’t go on your credit report.
Please don’t hesitate to reach out to our legal funding experts for more information on how our lawsuit loan alternative services can help you keep your life on track after you’ve been involved in a serious accident.