Even if you have a strong and well-supported legal claim, it can take a significant amount of time to recover full and fair financial compensation through a lawsuit.
As described by the American Bar Association (ABA), the typical tort claim — such as a personal injury lawsuit — will take somewhere between three months and twenty-four months to reach a resolution.
This raises a potential problem for plaintiffs: What do you do if you need money right now? One option available is that you can borrow money from your settlement. There are, of course, pros and cons to getting a loan against a lawsuit. Still, for many people, lawsuit funding is the most cost effective way to get bills paid now.
How Does Lawsuit Borrowing Work?
If you are getting money for lawsuit or a loan against lawsuit, you are technically getting something called a ‘non recourse cash advance’. Although the term ‘loan’ is often used in the industry, lawsuit funding is not technically a loan at all.
Instead, plaintiffs “sell” a portion of the value of their case in exchange for immediate cash. This means that your eligibility to borrow against your lawsuit is based on the strength and value of that lawsuit. The higher your settlement is expected to be, the more cash you will likely be able to access today. With lawsuit borrowing, there are no credit checks and there is no income verification.
Approval may take as little as a single day. That being said, a lawsuit lending company will need some basic information from your attorney before it can proceed in reviewing your application for a settlement advance.
No Monthly Payments — You Only Pay if You Recover Financial Compensation
When you are looking for the right lawsuit lending company, two of the most questions you need to ask are as follows:
- Are there monthly payments?
- Do I have to repay anything if I lose my case?
The answer to both questions should be ‘no’. Lawsuit funding is non-recourse funding. That being said, there should be no monthly payments and you should only be required to pay if you get a settlement or trial verdict.
Though there are no monthly payments, it is still important to consider your case. Make sure you find the lowest rate lawsuit funding. When your case is finally resolved, you will want to pay back as little as possible. Sadly, some lawsuit lending companies charge clients sky-high interest rates. There are better options available — Ally Lawsuit Loans guarantees the lowest rates in the entire industry.
Apply for Lawsuit Funding Today
At Ally Lawsuit Loans, we are proud to provide the lowest cost pre-settlement lawsuit funding to plaintiffs across the country. If you are interested in borrowing money for your lawsuit, please do not hesitate to submit your application today. Our customer support team is here to answer any questions that you might have and to walk you through all aspects of the application process.