Opting for a settlement loan is a decision associated with borrowing money against the future settlement. It is mainly for someone who is struggling financially due to litigation processes.
In other words, Settlement Loan is the act of borrowing money against the proceedings you might expect to win in a Lawsuit. It is a loan that you receive in advance, on the settlements.
How does a Settlement Loan Work?
Settlement Loan is the money that you borrow from a financial institution, primarily a bank, and expected to pay it back later along with the interest.
Before approving the loan, bank checks for the criteria whether you will be in a position to repay it later. It majorly checks for:
- A reliable source of Income,
- Credit History,
- Other Assets (House, Car, Cash Deposit).
After getting the loan approved, you are subjected to use the money for a specific purpose. In the uneventful case of not repaying the money, you are posed to a fine, lawsuit or a damaged credit.
Is it Advantageous to file a Lawsuit Settlement Loan?
Even though filing a Law Suit Settlement Loan is a cumbersome and expensive process, it majorly benefits the plaintiff. If any unexpected personal injury has caused you to lose income, incur losses and had worsened your financial situation, it is better to consider filing a lawsuit settlement loan. It helps you relieve from the stress as you wait for the settlement of the suit.
The settlement loan covers the
- Monthly living expenses,
- Loan payments,
- Medical treatment and pharmacy,
- Mortgage Payments,
- Utility Bills.
The only drawback is that Settlement loans are time-consuming, restrictive and cumbersome.
Who will assist in the process of Settlement Loan?
If the odds of winning the lawsuit are in your favor, there are numerous Settlement companies that would like to assist you. The synonyms they use for this loan are Lawsuit Loan, Pre Settlement Loan, Settlement Funding, Lawsuit Funding, Cash Advances.