What to do When you Need Financial Help with your Lawsuit
The amenity that is litigation finance needs you to understand how it works before diving right in to use it. There are many who are tempted to take up the financing without understanding its implications. IT is important to understand how to deal with these companies.
Litigation finance refers to the financial help you will receive to help you manage the expenses of your lawsuit, as it runs its course. They shall receive their settlement, on which they are expected to pay what they took out to facilitate the case. IT is not the same as a loan. The money is not lent to you on your merits but the merits of your case and it’s potential victory. Therefore, your credit history and bankruptcy status do not matter here.
There is usually an interest charged upon the money offered. You will notice differences in how much each company charges. Such a cash advance is a risky venture, since the case, though strong, can go either way. The investment thus has all its outcomes pegged on the case. Cases that may have seemed destined for certain outcomes can quickly turn direction at the last minute. This is why they will charge high interests for their advances. This is done to recover their losses from all cases that turned out not as expected.
You may face other charges, apart from the interest rates. This will also be determined on a company to company basis. They will include the details of those charges on the contract they bring to your lawyer to sign, and it shall be kept until your case is over. They might charge you origination fees, application fees, a documentation fee, closing costs, a premature payoff penalty, and others. They share such items with what normal loans attract.
The litigation finance amount should not be looked at as a faster way of getting your settlement. This is not the entire amount of what you expect at the end of the case. It is therefore important not to treat it as such. The amount you got from this financing will not be the same as the settlement amount. Their payment will be calculated as from when you borrowed it to when your case left you with the settlement amounts. There is a need to first explore lesser strenuous means before resorting to this one.
It pays to learn more about this service before going for it. When your situation allows for this kind of arrangement to win your case, you shall benefit greatly by understanding all that goes into this arrangement. You cannot afford to take it otherwise.