Getting Through Your Divorce and on With Your Life

Pros And Cons Of Injury Lawsuit Loans

23 April 2020

Celina Henry

If you file a personal injury lawsuit, you might wait for more than two years to get your money. Unless you have a healthy bank account, such a long wait might make life difficult for you. Fortunately, you can get lawsuit loans for your immediate financial needs as you await the settlement check. Below are some of the pros and cons of these loans.

The Benefits

Here are some of the reasons to consider lawsuit loans.

Immediate Funds

Many people need immediate money after an injury. Even if the relevant insurance companies pay your medical bills, you also have other expenses, such as:

Property damage repair

Babysitter fees if you can't take care of your child

Domestic helper expenses if you can't do your normal chores

Moreover, you might be out of work for a long time due to your injury. The lawsuit loan may be the best source of immediate funds.

Low Risk

Lawsuit loans carry relatively low risks. According to nolo.com, you only repair your lawsuit loan if you win your case and get the settlement money. In addition, your repayment won't exceed your award if the award is less than the loan.

For example, if you took a lawsuit loan of $100,000 but your lawsuit only nets you $75,000. The lender won't force you to pay more than the $75,000.

Focused Negotiations

Personal injury negotiation is not easy. The negotiation will be even more complicated if you are also thinking about your immediate financial needs. A lawsuit loan frees you from such worry so that you can focus on your case.

The Disadvantages

Here are the drawbacks to consider before taking a lawsuit loan.

No Guarantee

The law risks of lawsuit loans mean lenders have to be extra careful with whom they loan. You only qualify for the loan if you have a strong case. A lender will only consider your application if they are convinced you are likely to win.

High Rates

As mentioned above, the financier will only get their money back if you win your case. That is a very high risk from the lender's point of view. Many lenders charge high rates to protect themselves from those high risks.

Complicated Terms and Conditions

The government doesn't regulate the lawsuit loan industry as tightly as it does other financial issues. Thus, the requirements, terms, and disclosure of a lawsuit loan can be complex and difficult to grasp by an average person.

Injury lawsuit loans have their pros and cons. If you are considering this for yourself, seek the help of a personal injury lawyer.

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About Me

Going through a divorce? I know how you might feel – alone, stressed out, and probably even a little sad due to the loss of the life you have always known. Whether you have children or not, you might even feel a little guilty about the break down of your relationship. But I'm here to tell you that a divorce is not the end of the world. In fact, once you get used to the idea and start to move on with your life, you may find just as much, if not more, happiness than you ever had while you were married! Getting through the proceedings of your divorce in a dignified manner is the first step, and hopefully this website will give you the insight, support, and motivation you need to get through the process as painlessly as possible.