Where to Find the Best Lawsuit Loan for You!
FAQ: Frequently Asked Questions about Lawsuit Loans
Q. Why are lawsuit loans not really loans?
A. Lawsuit loans are not really loans because a “loan” by its very definition has to be paid back regardless of your financial situation or ability to repay it. Lawsuit loans are really not loans because recipients of them are only required to repay them if – and when – they win their lawsuit or reach an out-of-court settlement.
Q. What is the lawsuit loan application and funding process?
A. You begin the process by applying online. A lawsuit loan underwriter reviews your application, and if you appear to have a fundable claim, he requests supporting documentation from your attorney. Once the lawsuit loan underwriter has reviewed this documentation, he makes a decision about making a loan against your lawsuit. The lawsuit loan company sends an agreement to your attorney to review on your behalf, and when the lawsuit loan provider receives back your signed agreement, a check is issued and it is over-nighted to you.
Q. How does the lawsuit loan company get paid back?
A. When you win your lawsuit at trial or reach an out-of-court settlement, the proceeds of your settlement go into your attorney’s trust account. Your attorney first pays himself his fees and expenses, then he pays off your lawsuit loan and any other liens against your lawsuit. Then he remits the balance to you. Should you lose you case, you keep the lawsuit loan money, and you owe the lawsuit loan company nothing.
Q. What are the differences between lawsuit loans, legal finance, lawsuit funding, lawsuit advances and pre-settlement funding?
A. These are all different terms for what is essentially the same financial product. The term “lawsuit loan” is the most popular, even though the transaction is not technically a loan.
Q. What involvement does the lawsuit loan company have in my claim?
A. It has no involvement at all. Once the lawsuit loan company advances you cash against your lawsuit, it is not involved in any way in the prosecution of your claim. The company will, however, ask to be kept informed about your case.
Q. What interest rate will the lawsuit loan company charge me?
A. They do not charge interest because interest is charged on loans, and lawsuit loans are not really loans. You will be charged a “risk premium” on your lawsuit loan, and will be a fixed fee charged every six months. The risk premium differs from loan to loan since each application for a lawsuit loan is evaluated, granted and priced on a case-by-case basis.