Severe accidents often leave victims in dire financial straights. Perhaps you or your spouse can’t work, and life took a turn for the worst.
Maybe bills are starting to pile up, and you have nowhere to turn.
With so much undue stress, it’s nice knowing there is a path leading you to the light at the end of the tunnel.
Non-recourse lawsuit funding helps victims cover day-to-day costs when they struggle to make ends meet.
Who Can Receive Non-Recourse Loans?
Non-recourse lawsuit funding is primarily intended for plaintiffs waiting for their litigation to make its way through the courts or awaiting a settlement from their insurance company.
Basically, it’s a loan that will be paid back from your settlement money or the compensation you received from a lawsuit.
Once your case resolves, your attorney will get a check for the agreed-upon compensation amount from the opposing party.
They then write us a check for repayment, take their attorney’s fees, and send you the rest. The lawsuit funding will hold you over in the meantime.
Why Is It Called a Non-Course Loan or Non-Recourse Lawsuit Funding?
Using the term “non-recourse” might confuse some people. It’s a relatively new type of financing that most people aren’t familiar with.
However, “non-recourse” is simply a term of art. It’s the category into which the Internal Revenue Service (IRS) divides a type of debt.
=With this kind of debt, which includes pre-settlement legal funding, the borrower is not held personally liable.
The lender cannot continue to pursue or demand payment after taking any collateral.
When you get pre-settlement legal funds, you are taking out a non-recourse loan.
Our repayment comes directly from your eventual settlement or jury award at the end of your case, and you are not held personally liable if you don’t win.
The most significant way this protects you is that the loan agreement is contingent—if you lose your lawsuit, you don’t pay us back. All the risk is on us.
How Is Non-recourse Lawsuit Funding Different from a Traditional Loan?
Non-recourse lawsuit funding is not a loan in the traditional sense.
Non-recourse loans differ from traditional ones because the amount you might qualify for depends solely on the expected outcome and value of your civil lawsuit or insurance claim.
With a conventional loan, you will need to be approved and have good credit to avoid high-interest rates. Generally, you would pay significantly more than you initially took out in your loan.
However, your credit does not matter with a lawsuit loan, and you do not need a steady income to be approved. No proof of paystubs or bank statements is required.
Because your lawsuit loan approval relies on the likelihood that you will be awarded compensation in your civil lawsuit or insurance claim, you avoid the hassle of a burdensome application process and unnecessary extra costs and interest.
Non-Recourse Lawsuit Funding Could Be the Help You Need
Don’t suffer unnecessarily with the burden of bills and everyday costs when there is someone who can help.
At Ally Lawsuit Loans, the process is straightforward. Our mission is to provide the lowest-cost pre-settlement loans in the industry.
However, we can’t tell you exactly what your settlement loan interest rate will be until we learn the specific facts of your case.
To find out, apply online or call us today at 844-325-0950.