What Are Pre-Settlement Loans?
When you hear about the term pre-settlement loan, you will immediately be led into thinking about the cash payments that a plaintiff may be granted in accordance with a favorable settlement. There are different categories of legal loans which include the ‘non-recourse’ category that a pre-settlement loan falls under, meaning there is no way for the extender of the loan to collect any amount of money from the plaintiff in case the problem 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. Although in most times it will be for the benefit of the plaintiff’s convenience, since he or she will be given a chance to manage his or her finances better by allowing him or her to pay monthly.
Any plaintiff would be eligible for a pre-settlement lawsuit funding provided that there is an official lawsuit that is being processed so that he will be able to claim for damage done from negligence of others, or it can also be for someone who has suffered the loss or injury in the workplace at the time of duty.
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. In a situation like this, the plaintiff may find somebody responsible for the death of another may it be a corporate body, a certain person, or a government entity. 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. This is where a pre-settlement loan is most needed.
A lot of financiers are able to extend the plaintiff some money even before there is a settlement in the case during the legal process. 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 is agreed upon, it is now possible for the pre-settlement loan of the plaintiff to be recovered together with its interest.
Pre-settlement lawsuit funding varies from financier to financier that is why it is highly essential for a plaintiff to spend some time in looking for a pre-settlement loan that has the best interest rates as well as all the other legal financing that he might need with regard to his case.