What Are Common Types of Lawsuit Funding?

types of lawsuit funding

Every person deserves their day in court. Unfortunately, not everyone can afford to litigate their legal issues.

Lawsuits can take a long time and use up your financial resources quickly.

But you don’t have to let financial pressure prevent you from holding others legally accountable for their wrong actions. 

A lawsuit loan can help you meet your financial obligations while your attorney takes the necessary time to negotiate the best settlement in your case.

At Ally Lawsuit Loans, we can quickly guarantee the lowest lawsuit loan rates in the industry. Apply today to learn more!

The Financial Burdens of a Lawsuit

There are many ways a civil lawsuit or legal complaint can tug at your purse strings.

If you plan to file a lawsuit or complaint, you need to consider how the following demands might affect you:

  • Attorney and court fees,
  • Medical bills,
  • Property repair or placement costs, and
  • Regular bills. 

It can take several months—even in good situations—to resolve a legal complaint, and your bills and obligations can pile up in the background while you wait for a resolution.

Property Repair or Placement

Many states require you to mitigate your damages from a civil legal issue before you can recover full damages in a lawsuit.

This means that you need to take immediate action to fix, repair, or treat what a defendant damaged instead of waiting for them to pay to fix the harm.

Paying out of your own pocket to fix the harm that someone else caused is costly but important to preserving your rights. 

Medical Bills

If a defendant’s actions damage your physical or mental health, you need to seek treatment immediately.

Seeking care right away can help improve your recovery and maximize your right to damages in a lawsuit.

Once again, you’ll likely have to pay these costs out of pocket until you can prove the defendant is legally liable. 

Attorney and Court Fees

Usually, you need to hire an attorney to have the best chance of success in a legal complaint. This can be costly but crucial to your success.

You might also need to pay court fees and other legal fees to litigate your case. 

Regular Bills

Despite the massive inconvenience, the rest of your life doesn’t stop when you file a lawsuit.

You still have regular bills to pay and responsibilities at work and home while litigating a case.

If a defendant has injured you, and you’re paying legal fees to hold them accountable, your regular obligations will likely be harder to fulfill.

If the defendant caused injury to your physical or mental health, it might be harder to earn wages—and even harder to pay your bills. 

So what do you do when you have a strong legal case against someone, but you don’t have the money to cover all your financial needs? You can seek lawsuit funding. 

Types of Lawsuit Funding

To keep you financially afloat while you handle injuries and litigate a case, you can seek many types of assistance, including:

  • A lawsuit loan,
  • Unemployment insurance payments,
  • Personal health insurance coverage,
  • Disability insurance payments,
  • Accident insurance payments, or
  • Assistance from family or friends.

The availability of many of these options depends on your specific circumstances.

Also, some of these types of assistance can be tricky to mix with your legal issues and involve lots of paperwork and monitoring.

A lawsuit loan can be a much simpler way of relieving the financial burdens of litigation. 

What Is a Lawsuit Loan?

A lawsuit loan is a way to receive an advance on a settlement you’re anticipating from a lawsuit or complaint. 

How Does a Lawsuit Loan Work?

With this type of loan, you promise to pay your lender a portion of an expected settlement, and your lender gives you money far in advance of settlement.

This money can help you pay your bills while you wait for a final payout. 

What Happens If Settlement Negotiations Fail?

Don’t let the word “loan” in this context make you nervous. Lawsuit loans are “non-recourse” advances.

This means that a lawsuit loan lender can only recover the money they’re owed from the settlement in the specific legal case you put up as collateral.

In other words, if you don’t win an award, the lawsuit loan lender does not get back the money they advanced you.

Unlike other lenders, lawsuit loan lenders can’t recoup their money from your home or other assets. 

For What Types of Lawsuits Can I Receive a Loan? 

Many types of lawsuit loans are available through Ally Lawsuit Loans.

Depending on where you are and the circumstances of your case, we can help you with funding:

If you’re unsure whether your particular case is eligible for our lawsuit funding services, speak to your attorney and then ask us about your options. 

You Can Go Far with a Good Ally

Fighting for what you’re legally entitled to should not bring your life to a screeching halt financially.

Whether you need personal injury case funding or funding for another kind of civil complaint, Ally Lawsuit Loans can help you get the best rates in as little as 24 hours.

Talk to your attorney about your funding options. If your best option is a lawsuit loan, give us a call at 844-545-6246 or contact us online

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