Unfortunately, people are involved in injuries each and every day and such injuries have become a common occurrence in the United States. Lawsuits are usually filed for a variety of reasons, including those arising out of personal injury, wrongful death, neglect, sexual harassment, civil rights, class action, Workers' Compensation, etc.
A large number of these lawsuits often appear frivolous-and often they are. However, one must be careful not to hastily conclude that the case lacks merit just because there are some questions involved in analyzing the case. Fortunately, by obtaining lawsuit loans many individuals who sustain these injuries are able to obtain financial assistance and to assist during very troublesome times by having settlement loans.
What is the concept of a lawsuit presettlement loan? Quite simply, a lending company, customarily comprised of a group of investors, buys by interest in an outstanding claim. When this happens, the plaintiff is often able to obtain the cash-advance on that case that will assist them in continuing the litigation.
In light of the risk that lawsuit loans and settlement loans pose to those who advance the lawsuit funding, it is necessary for fees to be charged for allowing plaintiffs to access that cash prior to settlement. Unfortunately, many individuals mistakenly refer to this as interest rates. However, there are no actual interest rates in settlement funding.
The reason that no interest fees are charged is because these are non-recourse settlement funding instruments. This simply means that if you do not win the lawsuit, you don't have to repay the lawsuit loan advanced to you. This gives individuals a great deal of comfort in times of financial-distress. As many individuals who sustain these injuries will quickly find, expenses quickly mount and the ability to continue to earn an income during the process of recovery may be substantially diminished.
