Lawsuit Loans

A lawsuit loan is automatically repaid from the settlement you receive. The costs of the case will be deducted first – which may include payment for medical liens and expenses, court fees, processing fees, and more. The remaining amount will then go to the repayment of the loan, and you will receive the leftover amount. This can be quite a shock to some plaintiffs, as they may be expecting large settlements but the numerous fees and expenses paired with the loan and interest could drastically shrink the total.

Bear in mind that the loan is only repaid if your attorney wins your case. If your case is not a success, you will not have to pay back the loan to the company or to the attorney. This is a risk that the lender takes, and partially explains why the costs are much higher. If a lender issues a loan and cannot get repayment, he may be out thousands of dollars.

Plaintiffs should know that they stand to lose a fair amount of money if they opt for an up-front loan. It may be wiser to simply let the case ride out. However, this may not be possible for some people, who could need the funds immediately to pay for various bills and expenses.

A plaintiff may need to take out a lawsuit loan because he has not been able to return to work for some time, and thus, he could be earning next to no income. As a result, his day to day expenses and costs could be towering over him or looming closer. Many individuals need to cover various living expenses like food costs, rent, gas money, and more. They may have to pay monthly mortgages, car insurance, phone bills, electricity bills, and other loans. Even some medical bills may need to be paid off quickly.

You should be aware, though, that not every case is immediately eligible for a lawsuit loan. The company or attorney will highly consider whether or not the case will be a success. If there is a likelihood of failure, your loan will not be approved.

Federally, lawsuit loans are not regulated by the government. There are various State regulations and rules that have been put in place, but for the most part, things like interest rates and contract wording are not held to a higher standard. The primary reason for this is because the loans are essentially non-recourse; that is, the plaintiff does not have to repay the money he borrowed, as it will be taken with interest from a future sum.

This means that some legal companies may have exorbitant interest rates or may write certain clauses into the contracts that you do not agree with, such as additional payments.

You may have an attorney already or you may have already taken out a loan for your case but your previous attorney dropped it. You can come to our law firm, the Downtown LA Law Group, to learn more about legal loans and to work on your personal injury lawsuit. We will do everything in our power to ensure that you are awarded the maximum compensation under the law, and our aggressive lawyers will stop at nothing to fight for your rights.

Call us today for a free legal consultation. You can reach us 24 hours a day, 7 days a week, 365 days a year. We invite you to ask us any questions you wish and we’ll answer accordingly. All private details, case information, and personal statements will be kept totally confidential, and nothing will be shared outside of our office walls.

If you choose us to handle your case and represent you, we’ll also ensure you pay us no fees throughout the process. We will give you our zero fee guarantee, which says that we only get paid if we win, and if we lose, we take nothing at all. Our lawyers operate on contingency, and the settlement we bring you will be the source for our expenses.

To learn more about lawsuit loans, contact the Downtown LA Law Group today.