Are Lawsuit Loans Worth It?

If you’re in the midst of personal injury litigation, you might be worried about how to cover living expenses, medical bills, and other expenses before your case is resolved.

If you’re represented by an attorney, the law firm is likely advancing legal fees and costs to keep your case progressing toward trial.

Unfortunately, that doesn’t help you cover monthly financial obligations. One option to consider is pre-settlement funding, also known as a lawsuit loan.

If you aren’t familiar with this type of funding, you might wonder, are lawsuit loans worth it?

Lawsuit loan benefits are numerous, but this type of funding is not the ideal solution for everyone.

Read on to learn more about pre-settlement legal funding and whether a lawsuit loan is right for you.

Potential Benefits of a Lawsuit Loan

One of the main benefits of lawsuit loans is being able to access cash now. This advance can hold you over until you get a settlement or a jury awards you compensation.

Injury accidents can leave you hurting for money, especially if you can’t work for an extended period of time.

You’ll have some financial breathing room while your attorney negotiates to get you maximum compensation.

That means you might receive a better settlement because you can let negotiations continue rather than caving to the defendant and accepting a settlement for less than what your case is really worth.

Another significant benefit of a lawsuit loan is it’s risk-free. We will not pursue reimbursement if you lose your case and the jury awards you nothing.

There is no further obligation, which means you’ll keep the money from your loan without a demand for repayment.

Potential Disadvantages of a Lawsuit Loan

Obviously, there are costs associated with lawsuit loans, as is the case with any type of legal funding.

While it might be tempting to take a larger loan than you need, there are fees and interest that will compound over time.

We always recommend clients only request what they need now. You can always come back and apply for a second loan if necessary.

The other potential issue with lawsuit loans is not everyone will qualify. You won’t receive funding if you represent yourself. You must have a licensed attorney representing you and handling your case.

Most cases are eligible, but we might determine your case is too high risk.

That might be because of the type of case, how much your potential settlement will be, or the fact that liability is questionable.

We understand that it can be frustrating not to qualify, but your case must meet specific eligibility standards.

That’s why we speak with your lawyer to learn more about your case before deciding whether to approve your application.

Cases that don’t have a strong chance of settlement might not be the right fit for funding through Ally Lawsuit Loans.

Should I Get a Lawsuit Loan?

Deciding whether to get a lawsuit loan is a personal choice. However, unlike other traditional loans and financing options, you have nothing to lose by applying.

You won’t have negative marks on your credit or inquiries you need to worry about after applying. Nor do you need to have a minimum annual salary or a certain amount of assets to qualify.

We base our decision on the merits of the litigation, not your employment status.

If you want to know the answer to “are lawsuit loans worth it,” contact Ally Lawsuit Loans today.

We’re here to answer any questions and help you decide whether applying for pre-settlement funding is right for you.