Filing a lawsuit takes money and a great deal of time to complete. When a lawsuit is long and complicated many bills pill up that need payment while the victim waits for settlement. In such situations it is possible that a lawsuit settlement loan is necessary. This article will discuss the advantages and disadvantages of lawsuit settlement loans.
Lawsuit Settlement Loans: Advantages
As with most things there are advantages and disadvantages linked with taking a lawsuit loan. Receiving a lawsuit loan ensures that monies are provided when the financial situation of the victim is difficult. Therefore, the victim is able to pay for bills thus reducing their difficulties. Some financial issues that may be settled by lawsuit loans include living expenses as well as other day-to-day responsibilities, already accrued medical costs, additional time, daily living and similar concerns. In other instances, the loan may be used to put more time in litigating a better negotiated disbursement. With more time given for negotiation this may result in a fairer or greater amount of compensation being received. Extra time is usually necessary when the defending party is refusing to offer or negotiate a fair amount.
Lawsuit Settlement Loans: Disadvantages
However, there exist disadvantages of taking a lawsuit loan. Some disadvantages are due to the:
- minimal amount of money that may be received,
- high interest fees on the loan, etc.
- lender requiring, through interest and fees, an amount of double or triple what was initially borrowed
- lender may not require more than the settlement amount they made them, but the entire amount. This is due to additional fees and interest that are added on after the principal has been borrowed.
It is possible that while the case process continues a lawsuit loan lender may be charging interest. Therefore, speak to your personal injury lawyer for advice on taking a lawsuit settlement loan.