Lawsuit Loans: Does Your Case Have What it Takes to Qualify? Part I
We previously discussed the fact that the term lawsuit loan is a misnomer. It is not a loan at all! The correct term would be settlement funding, funding that is provided in advance of settling your claim. Many view this type of funding as a form of venture-capital.
An important aspect of this form of funding is the fact that the applicant bears no risk in this transaction, a benefit of having a non-recourse loan.
An agreement is made between the applicant and the settlement loan lender. Once the agreement is made, if you don’t win your case, you are not required to repay the amount funded. This is an aspect of settlement funding that may be used to provide a no-risk resource of financial help during a pending proceeding.
Settlement loans come in a variety of guises. An understanding of the types of cases for which lawsuit loans are issued will prove useful.
Lawsuits involving motor vehicle collisions: Personal injury suits frequently arise from these incidents. In addition to property damage to your vehicle, there are often hospital and other medical bills to pay. These cases are often protracted, running on for several years.
Cases involving injuries to children: Pre-settlement loans are often difficult to procure in these cases. As a result of many guardians attempting to settle these claims to satisfy their own interests, often at the expense of the injured child, the Court will occasionally appoint an attorney ad litem. The attorney ad litem is charged with representing the child’s interests, even when those interests are out-of-synch with the guardian’s.
Slip-and-Fall: This is the most common type of case. These are cases against which many retailers are taking a very hard stance. It is often necessary to request and obtain video-surveillance of the incident. It is necessary to be very clear regarding the surface on which the slip occurred, obstacles that were present that may have produced the fall, etc. Elicit testimony from witnesses if necessary to support the claim made. Don’t leave details regarding the mechanism of injury to chance.
Want to find out more about lawsuit loans, then visit Dr. Tom Rhudy’s site to find out if you qualify for alawsuit loan for your needs.
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