What to do When you Need Financial Help with your Lawsuit
Litigation finance comes with certain conditions that it is important to know of before going in for it. Do not be one of those who rushes in to use it without understanding what position it puts you in. You ended to find out more about how to go about engaging these services.
Litigation finance refers to the cash advance one gets based on the strength of their lawsuit, to help them fight the case to the end. You are expected to pay it back when your case is over, and you have gotten the settlement amount. IT is not the same as a loan. The money is not lent to you on your merits but the merits of your case and it’s potential victory. This means that you are not obliged to reveal your credit history or whether or not you are bankrupt.
There is usually an interest charged upon the money offered. This varies with the company you approach. Such a cash advance is a risky venture, since the case, though strong, can go either way. The investment thus has all its outcomes pegged on the case. IT is common to see cases go completely differently from what people thought they would turn out to be. This is the main reasons for their high interest charges. This is done to recover their losses from all cases that turned out not as expected.
Apart from the interest rates, you may also face other charges on the cash advance. This will also be determined on a company to company basis. They normally state these charges on the contract your lawyer signs, which will be brought out at the end of your case. They might charge you origination fees, application fees, a documentation fee, closing costs, a premature payoff penalty, and others. Their operations are almost similar to traditional lenders in this regard.
The litigation finance amount should not be looked at as a faster way of getting your settlement. This is only an amount that helps smooth out the operations of your defense. You should not forget what it is meant for at all times. The amount you got from this financing will not be the same as the settlement amount. Their payment will be calculated as from when you borrowed it to when your case left you with the settlement amounts. There is a need to first explore lesser strenuous means before resorting to this one.
It pays to learn more about this service before going for it. When your situation allows for this kind of arrangement to win your case, you shall benefit greatly by understanding all that goes into this arrangement. If you go in blindly, you may end up extremely disappointed when your case is over.