Lawsuit loans or Litigation funding
All personal injury victims that pursue a lawsuit will face high costs and expenses associated with the litigation. Costs are even more difficult to cover when those that have suffered the injury are out of work and have high medical bills. Many lawyers work on a contingent fee basis, meaning that you do not have to pay anything to them unless you the case is won. Unfortunately, the other costs associated with litigation or being injured can still cause the injured a high amount of stress and expense. For this reason many litigation companies offer funding to their clients in the form of litigation lending, or a "lawsuit loan."
Lawsuit loans, or litigation funding, will provide those going through a personal injury claim enough money to pay bills and survive until the end of your case. Most litigation fundings are non-recourse loans, meaning that if you don't win your case or it is dismissed there will be no fees associated with the loan. Fees associated with litigation lending can be high, so full disclosure should be written in a contract, so both lawyer and client understand the process and fees associated with the loan.
Other types of litigation funding may come to you in the form of personal loans from banks or credit unions. This is great option for personal injury clients that have a good credit history who can find low interest, unsecured loans. If interest is high, it is important to assess whether a personal loan or litigation funding is the better option for you. Finally, many personal injury clients chose to use the equity of their home or borrowing money from family or friends to get through until the case is over.
It is important to remember that if your injuries are severe enough to leave you with disabilities you may qualify for social security benefits, workmen's compensation (if personal injury happened on the job) or even long-term or short-term disability benefits. There may be many forms of assistance that you, as a personal injury victim, are not aware of. It is important not to hesitate to call state and federal offices to inquire about such programs. Remember that if you don't qualify for personal loans or state programs you may find it easy to borrow money from your litigation funding company. Paying for injuries on a possibly reduced wage can be almost impossible, but there is hope that you can stay financially stable until the case is over.
Lawsuit loans, or litigation funding, will provide those going through a personal injury claim enough money to pay bills and survive until the end of your case. Most litigation fundings are non-recourse loans, meaning that if you don't win your case or it is dismissed there will be no fees associated with the loan. Fees associated with litigation lending can be high, so full disclosure should be written in a contract, so both lawyer and client understand the process and fees associated with the loan.
Other types of litigation funding may come to you in the form of personal loans from banks or credit unions. This is great option for personal injury clients that have a good credit history who can find low interest, unsecured loans. If interest is high, it is important to assess whether a personal loan or litigation funding is the better option for you. Finally, many personal injury clients chose to use the equity of their home or borrowing money from family or friends to get through until the case is over.
It is important to remember that if your injuries are severe enough to leave you with disabilities you may qualify for social security benefits, workmen's compensation (if personal injury happened on the job) or even long-term or short-term disability benefits. There may be many forms of assistance that you, as a personal injury victim, are not aware of. It is important not to hesitate to call state and federal offices to inquire about such programs. Remember that if you don't qualify for personal loans or state programs you may find it easy to borrow money from your litigation funding company. Paying for injuries on a possibly reduced wage can be almost impossible, but there is hope that you can stay financially stable until the case is over.
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