The peculiar thing about the pre-settlement loan is – “its not a loan”. It is an amount given for a decision in a case that is still pending. Once you file a case in a court, these lawsuit loan firm offers you an amount after estimating the total claim you are going to get at the end of the legal proceedings. The best thing is if you lose your case, you are not required to repay anything back.
The concept of pre-settlement loans is something new in the field of financing. It is given to offended parties that are going through legal proceedings, including individual injury, road accidental fatalities, death of a person that happened in the wrong way, injury at your work, wrongful medical practices, liabilities, jobs, and business claims. Presettlement advances or financing are not the same as ordinary loans in a variety of ways. The use of the word “loan” here nothing else to do except familiarising people with this new type of financing.
How to avail the benefits of pre-settlement loans-
- Get yourself a lawyer and file the case
To get a pre-settlement loan, you should initially file a case. Usually, this includes hiring a well-established lawyer who files a claim for you in the high or supreme court. There are many lawyers out there who do this pre-settlement loan work by charging high fees. In this contingency-based work, lawyers represent the client who seeks the claim and gets a level of the commission on the final decision of the case. In cases of injuries and job-related issues, the commission can vary from twenty to forty percent.
- Apply for the pre-settlement loan from a trustworthy firm
Now when you have a lawyer by your side and successful filing of the lawsuit, a pre-settlement financing firm can support you with covering your everyday costs during entire legal proceedings. At the pre-settlement loan firm, a delegate will assess the details of your case and make an evaluation of the amount you are probably going to get in the result. They will utilize this gathered information to decide how much money they can afford to give you and how much interest you have pay if the case falls in your favor.
- Read the contract well with your lawyer
The firm will provide you with all the documents with terms and conditions about pre-settlement loans to you and your lawyer. The lawyer that you hired should perform his job well by carefully reading the entire document. The reason being in most pre-settlement loan cases, the lawyer is responsible for making all the settlements once the case shows the positive results. In case you win the case, you receive what remains of the claim after paying the commission of lawyer you hired, the pre-settlement loan entire principle along with the interest on it. In a way, the lawsuit loan firm owns a part of your claim that comes to you after a successful result.
Once you are done with the steps mentioned above, only thing left is to decide whether you want to go for it or not. If yes, the firm start with its documentation procedure and in no time you get the loan.