The Advantages Of Pre-Settlement Loans
If there is a favorable settlement that is being anticipated, it is possible for a plaintiff to be granted cash payments through a pre-settlement loan, as the term implies. In the different categories of legal loans, the pre-settlement loan falls under the ‘non-recourse’ category, which means that the extender of the loan is forbidden to collect any amount of money form the borrower if the case has not yet been settled.
The borrower has an option to pay these loans either before or during the process of the lawsuit and this can be extended to a monthly payment depending on the agreement that the borrower will have with the extender of the loan. In most cases, this will depend on the convenience on part of the recipient, though most of the time a monthly payment is agrees upon to allow better financial management.
Pre-settlement funding is granted to people who have been injured or lose someone who is in their work while in the course of duty, or it can be for a plaintiff with a case that is going on due to negligence of others and claim for damages.
A pre-settlement lawsuit funding shall be granted to people whose loved ones died a wrongful death, or in case the loved one died intentionally or due to others’ negligence. There is a possibility for the plaintiff to point another as the cause of the death of his or her loved one may it be somebody from the government, a certain person, or a corporate body. Nevertheless, we can never rule out the possibility that the close relatives of the deceased may be able to launch wrongful death cases because they do not have enough money to seek for the right person to deal with. It is during these times where a pre-settlement loan is considered to make a big difference.
Even before the legal process is complete, some loan extenders are able to hand in some money to the plaintiff to help them with their settlement case. In most cases, as soon as the defendant’s lawyer will find out that they are at a losing end, he will immediately advise his client to get into a settlement so that there is no need for the case to move forward and to save the defendant from going into prison or having to spend more money trying to bail himself out of the case. As soon as this happens, the plaintiff’s pre-settlement loan will be recovered with all the interests paid for by the defendant as well.
There are different pre-settlement cash advance interest rates that are being offered by a lot of financiers that is why it would be better for the plaintiff to do some research first before committing to a loan extender about this.