Won’t Legal Funding Put Me in Debt?
A common misconception is that accepting a lawsuit loan to fund your personal injury or medical malpractice case will put you in debt. This isn’t true.
Lawsuit loans are cash advances that are only repaid if you receive a settlement. Whatever pre-settlement cash you receive will be repaid directly from the settlement. If you receive no settlement, you don’t need to repay the advance.
Because you take on zero debt obligation when receiving a lawsuit cash advance, the loan is no-risk funding. When you receive a lawsuit loan, the case itself is collateral. Essentially, you sell a piece of the proceeds to your case to secure the cash advance.
If you receive no proceeds, you owe nothing.
What are the differences between a lawsuit cash advance and a loan?
One difference between lawsuit cash advances and loans is that loans typically impose penalties for late payments. With a lawsuit loan, however, the money owed is taken directly out of your settlement. No payment schedule, no penalties.
Another difference is that you don’t need perfect credit or a long record of employment to secure a lawsuit loan. Your future settlement is used to guarantee the lawsuit cash advance, which means our legal funding professionals don’t consider employment or credit when processing lawsuit loan applications.
When reviewing your application, the biggest factor is your case’s chance of success. If our legal funding professional believe you have a good chance of winning, your pre-settlement cash advance will likely get approved.
Because of the simple application process, you could receive your pre-settlement loan in as few as 24 hours.
What can I use the money for?
If you experienced an accident or suffered a medical malady and are unable to work, you may be having trouble paying all the bills that are piling up. Lawsuit cash advances give you the money that you need to pay those bills, including ones from hospitals, doctors and lawyers — even your mortgage.
Personal injury and medical malpractice lawsuits can sometimes take years to settle. In the meantime, a lawsuit loan can help you pay important bills until receiving your settlement. The cash advance also helps ensure you don’t run out of money to continue your court case.
If your initial advance runs out before settlement, you may ask to borrow additional money. Subsequent cash advances will also be repaid from your settlement, once you receive it, and will also not put you in debt.
Will a lawsuit cash advance add to my monthly bills?
Lawsuit loans are repaid only after you receive a settlement. Your pre-settlement loan does incur fees and monthly charges, however they will be repaid in one bulk sum, directly out of your settlement.
That means your cash advance requires no out-of-pocket monthly fees or payments until you win your case. At that time, your lawsuit loan, plus applicable fees, will be taken directly out of your settlement.
Pre-settlement lawsuit loans are a no-risk option to continue funding your legal case and paying medical bills and living expenses. Contact our knowledgable legal funding professionals at Fund My Suit today to discuss your lawsuit funding needs and determine if you are eligible for a lawsuit cash advance.