The Real Deal About Personal Injury Loans
Personal Injury Loans have become popular over the last decade in the legal funding community
. However there is still a lot of confusion regarding this type of lending arrangement.Are personal injury loans actual loans?
No. In the absolute sense of the word they are not loans. The reason is that they are non recourse loans, meaning that there is nothing to repay if the case is lost. Thus any repayment of this cash advance is contingent upon the successful outcome of the case. If you do not win, there is nothing to pay. Also, there are no monthly fees or payments required. The only time you will need to repay the amount is if and when you successfully settle your claim.
When do I need to make repayments?
Repayment are only required when your case settles and you receive damages from your pending lawsuit claim. Before that time there are absolutely no repayments or interest to pay. The lawsuit funding company thus bears all of the risk on these types of advances.
Why are there no credit or income checks?
The reason that there are no credit history or employment checks made is because the basis of advancing this type of loan is your pending lawsuit. The facts and merits of your case are used to determine whether an advance will be issued. Your unsettled legal claim is essentially the asset used to make advances upon. Personal injury loans are issued on the expected outcome of the suit and nothing else is taken into account.
Who can apply for a lawsuit cash advance?
Anyone with a pending lawsuit is able to apply for a personal injury cash advance. All that is required is that you have already filed a claim and the case has not yet settled.
Are personal injury loans legal?
Yes this type of funding is absolutely legal and is becoming increasingly acceptable and popular within the finance and legal communities.
Just like one enters into a contingency fee agreement with an attorney, so you enter into a non recourse loan agreement with a lawsuit funding company. An attorney is not permitted to lend money to their clients due to a conflict of interest, hence a lawsuit funding company acts as a buffer. The funding company however has no involvement in a plaintiffs case and is completely independent.
The Real Deal About Personal Injury Loans
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