What Are Pre-Settlement Loans?
When you hear about the term pre-settlement loan, you will immediately be led into thinking about the cash payments that a plaintiff may be granted in accordance with a favorable settlement. There are categories of legal loans and this pre-settlement loans belong to the ‘non-recourse’ category which means that the extender of the loan has no way of collecting any money if the plaintiff’s case is not yet being settled.
There are many options for the borrower to be able to pay this kind of loan which includes paying it before or during the process of the lawsuit, or paying it in monthly payments depending on what is agreed by both parties involved in the loan. In most cases, this will depend on the convenience on part of the recipient, though most of the time a monthly payment is agrees upon to allow better financial management.
Any plaintiff would be eligible for a pre-settlement lawsuit funding provided that there is an official lawsuit that is being processed so that he will be able to claim for damage done from negligence of others, or it can also be for someone who has suffered the loss or injury in the workplace at the time of duty.
If the plaintiff has a loved one who died because of the intentional and negligent actions of others, or because of wrongful death of a loved one, then he shall be granted pre-settlement funding. There is a possibility for the plaintiff to point another as the cause of the death of his or her loved one may it be somebody from the government, a certain person, or a corporate body. It is highly probable for the close relatives of the deceased to launch wrongful death cases simply because they lack financial capabilities in searching for the right one. It will be during these times where a pre-settlement loan will be considered to give a huge impact on the case.
There are financiers who are able to grant the pre-settlement loan to the plaintiff even before the case is being legally processed and completed. In most cases, as soon as the defendant’s lawyer will find out that they are at a losing end, he will immediately advise his client to get into a settlement so that there is no need for the case to move forward and to save the defendant from going into prison or having to spend more money trying to bail himself out of the case. As soon as this is agreed upon, it is now possible for the pre-settlement loan of the plaintiff to be recovered together with its interest.
There are different pre-settlement cash advance interest rates that are being offered by a lot of financiers that is why it would be better for the plaintiff to do some research first before committing to a loan extender about this.