Lawsuit Loans
Lawsuit Loans which are also known as pre
settlement cash advances allow a financially
strapped plaintiff to access a portion of their
future legal settlement to pay today’s necessary
living expenses. Personal Injury and worker
compensation lawsuits can take years to resolve
and large insurance companies have the financial
strength to legally delay the process which can
financial ruin an injured claimant who is
looking for a fair settlement offer.
Companies like Global Financial (http://www.glofin.com)
offer cash advances against all types of
Personal Injury & Worker Compensation claims. It
works like this: Global Financial will review
the merits of an applicant’s legal claim and
determine the chance & size of a financial
recovery. They then offer the claimant a small
percentage of the total value of their claim in
return for an assignment of a portion of the
potential future proceeds in the claim. If there
is no financial recovery from the claim then the
funding company receives nothing. This makes
lawsuit loans very risky and actually a venture
capital investment rather than an actual loan as
the names suggests.
The fees charge by lawsuit loan companies can
vary dramatically but it is usually best to
stick with the larger companies, like Global
Financial (http://www.glofin.com) because they
work on larger volumes and lower pricing.
Usually a funding company will charge either a
monthly fee or a flat fee depending on the risk
associate with the claim.
It is my personal opinion that a claimant should
ask themselves one question before applying for
a cash advance against their pending claim. Will
the advance that I receive pay immediate and
necessary living expense? If the answer is yes
then you should accept a cash advance and
continue with your legal claim. If the answer is
no then it might be wise to hold off and wait
before applying for a lawsuit loan or cash
advance against your pending claim. In addition,
a lawsuit loan may be a very important tool when
the defendant’s insurance carrier decides to
make a low ball offer for settlement in the
claim. You can then use a lawsuit loan as a
financial tool to say no to the low ball offer
and have the financial strength to wait for a
higher and fairer settlement.
Lawsuit Loans have been trademarked by Global
Financial as "Lawsuit Insurance" because they
offer insurance like protection to plaintiffs in
the event that their claim is unsuccessful. If a
plaintiff takes a cash advance against their
pending legal claim and their claim is
unsuccessful then they get to keep the money
that was advanced to them. Thus the cash advance
guarantees that their claim will be financially
successful either by way of the cash advance or
by way of settlement or judgment.
This article is the property of
www.1st-in-homeloans.com, which has been
offering home mortgage services since 2002. To
find out more visit
www.1st-in-homeloans.com
Add to my Favorites
