Lawsuit Money & Legal Advancements
When a person is involved in a lawsuit they may borrow money against their case. The term “lawsuit money” is used within the legal markets as an advance against a personal injury or commercial litigation claim. Lawsuit money is a financial tool that is provided against cases that are either already settled or in the process of negotiation or litigation. For instance when a person has filed a claim they can borrow money against the lawsuit. The lawsuit money is given to a client when they accept to use the expected cash award as collateral. Because lawsuits are unpredictable and risky to the lawsuit lender, the money typically comes with a higher rate than a standard bank loan.
Legal advancements can be provided in several different ways. If a person needs a lump sum of money they can borrow a one-time advancement against their case. If a person needs funds now and potentially at a later date, lawsuit money can be provided through a payment schedule. While some people may consider a second round of funds, it can be easier to set-up a payment schedule in the case you need additional funds at a later date. These ongoing funds can be used at the discretion of the client; only take what you need.
How much money can you borrow from your lawsuit?
The amount of money a person can borrow will be determined through the underwriting process. It is common that a company may provide between 5%-20% of the expected compensation from the case. It will depend upon the company and the underwriter of how much money can be borrowed by the client. If you qualify for a legal advancement there are no caps on how much you may qualify for against your case.
Why is lawsuit money provided on a non recourse basis?
When a person receives lawsuit money against their case, it should always be non recourse. This means if the defense was to win the case, the borrower doesn’t have to pay back the lawsuit funding. Lawsuits tend to be complex and quite unpredictable. Because most people that borrow money against their suit have bad credit, unemployed and without assets, the only way to lend the money is on a non recourse basis. This type of lending was set-up to provide the client with needed funds during their case, while providing the investor and opportunity to make a higher rate on their money.
Is a legal advancement right for me?
We believe like any type of loan, if you don’t have to borrow money, don’t do it. Receiving money against a lawsuit can be expensive if a case extends over years. We believe that if you are interested in money against your lawsuit, you should always seek the best rates available to you. If you are interested in receiving money against your lawsuit, contact LawLeaf today. We provide legal advancements for a variety of different cases. If you are provided a legal advancement and lose your case, you don’t have to repay the money.
If you are interested in receiving money through a legal advancement, contact LawLeaf today. We provide services for personal injury and commercial litigation claims throughout the United States: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming and the District of Columbia D.C.