Lawsuit loans and lawsuit funding are a way for individuals to obtain money from legal action in the form of a cash advance. Lawsuit loans are available both to non-profit organizations and for-profit companies. Non-profit Lincoln lawyers offer a variety of services to suitably assist people who have been injured, or their family members, who have been harmed because of a defective product. Lawsuit loans can help an injured person or family make mortgage and credit card payments or provide money for medical expenses. It is important to note that these types of loans are not generally offered to settle a person’s claims.
Personal injury lawsuits are typically filed by clients who seek damages for pain and suffering, lost wages, disfigurement, permanent scars, loss of love and affection, and other similar results.
Lincoln is a leading plaintiff’s attorney firm located in Chicago, Illinois. They handle cases that range from automobile accidents, defective products, medical malpractice, and other types of personal injury claims. A Lincoln financial lawsuit loan can assist with the costs associated with pursuing a personal injury claim.
Lawsuit loans and settlement loans are different from conventional bank loans.
Most banks do not advance large sums of money to individuals unless they have collateral for that monies. Individuals interested in obtaining lawsuit funding prior to filing a lawsuit will need to consult with a certified public accountant. An accountant will be able to provide information concerning a lawsuit’s eligibility for funding as well as various factors that should be considered before proceeding with a lawsuit. Some of those factors may include the amount of potential compensation sought, the nature of the claim being brought forth, whether or not the plaintiff and his or her attorneys are able to find an adequate funding source, and the time it will take for the lawsuit to be resolved.
There are two basic types of lawsuit funding: (I) a cash advance and (ii) the settlement loans.
A cash advance is basically a short-term loan. Settlement loans are a long-term lending solution that is used to fund the settlement of a personal injury case. A cash advance is typically only obtainable when the plaintiff has reasonably expected future income from work, while a settlement loan is obtainable even if there is no such income coming into the plaintiff’s future. For most individuals who are interested in pursuing a lawsuit as a means of obtaining funds to help with expenses, both funding options are available.
When individuals are seeking lawsuit loans and settlement loans, they should be aware that the terms of these loans are usually very specific.
In many instances, a plaintiff must have a current salary or an income that is comparable to the stipulations of the funding agreement. Additionally, the amount of the funding should be commensurate with the nature of the claim being pursued. For instance, if the plaintiff is pursuing a case that involves injuries suffered as a result of another individual’s negligence, the funding terms will generally be much more generous. Conversely, if the claim is related to an automobile accident, the amount of funding advanced will be significantly smaller.
Even though funding companies do not require that the plaintiff have been awarded damages in a previous civil case, the funding company may make a judgment based on the results of that previous litigation. In this respect, Lincoln Financial lawsuit loans are similar to the loans that are made available to plaintiffs who are not likely to obtain monetary compensation as a result of their lawsuit. (In fact, in some instances, the funding agreement may call for the payment of fees to the company if the lawsuit is not successful.)
Most funding agreements will also require that the plaintiff be able to demonstrate that the amount of funds advanced is needed before any decision is made.
This requirement can often be quite difficult to fulfill, especially if the plaintiff is unable to adequately demonstrate how much funding is needed. This can be a substantial obstacle for some plaintiffs, although the courts generally allow plaintiffs to retain the monies advanced in this fashion if they can reasonably demonstrate that their need for the monies is indeed serious. (In this regard, the courts may require a plaintiff to submit a written request for funding, rather than submitting an application.)
Like any loan, Lincoln financial lawsuit loans come with several conditions. Although typically not much in depth, the contract will typically state that the funding will be used for reasonable commercial expenses and profit. A plaintiff should carefully review and carefully consider the terms of the contract before signing on the dotted line. In this way, the plaintiff can ensure that his or her lawsuit advances will not saddle him or her with excessive costs that do not serve the purpose of assisting the plaintiff’s business.