Cash for Settlement

Cash Settlement

25 05 2010 Comments Off on Cash Settlement

In the United States, court cases with claims are a usual happening. Civil lawsuits may be filed for several reasons, including but not restricted to wrongful death, personal injury, neglect, civil rights, sexual harassment, class action, and many more. Most of the lawsuits that undergo the civil court system are deemed frivolous, which means they are not valid to receive money. However, for claimants or plaintiffs in civil cases with merit to get cash settlement, they may have to wait months if not years to obtain what is due to them. If you are involved in a lawsuit associated with a wrong death or personal injury that had resulted to grave financial blow in your life, whether it’s because you loss a relative’s financial support or you can’t go to work due to the injury, a law suit settlement cash may help you, if you are in dire need of cash by this time.

Advance Litigation Funding

The idea of pre settlement cash is simple. A group or company of investors purchases interest during the course of lawsuits by providing cash loans to the claimant. As a result they get the cash loan back, to include the fees and interest if the plaintiff prevails in the lawsuit. This may appear like a very easy business practice; however, because the providers of cash settlements take a huge risk, not all civil lawsuits get approved for the funding.

Lawsuit settlement loans are measured as non-recourse debts since when the verdict of the lawsuit favors the defendant, the plaintiff will not be required to reimburse the loan back. This means that the money will stay with you and you’ll have no obligation to the loan provider when your case didn’t triumph. That’s why advance cash settlement providers do their best to steer clear of frivolous and immaterial lawsuits.

Applying for Litigation Funding

Now, with the risk that lawsuit settlement money providers deal with, you should note that the interest rates and fees integrated in these kinds of loans are not small. There are companies with charge rate from 2.9% up to 8.9% or more every month on the settled amount. Normally, there is a one-time fee on the amount loaned, which can amount from $100 to $7000. Many plaintiffs may only receive cash at 10% or less of the value of their lawsuit. This aids in protecting the claimant from getting into debt if they win the case and put the rewarded money of the jury or judge into good use.

Getting approved for cash for settlement loan is not similar with a traditional loan. Your income, credit history and rating, and employment history do not play any role in the approval procedure. Keep in mind that the loan approval is dependent on the actual merit of your lawsuit case.

Thus, the lawsuit settlement cash provider will assess your case and consult with your attorney before approving or denying your litigation funding application. It’s best to inform your lawyer that you will apply for settlement loan to make certain that you’ll not break any agreements with your lawyer by accepting the loan.

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