Loans That Are Pre-Settled
As the name implies, a pre-settlement loan is a cash payment that is given to the plaintiff with regard to a favorable settlement. There are different categories of legal loans which include the ‘non-recourse’ category that a pre-settlement loan falls under, meaning there is no way for the extender of the loan to collect any amount of money from the plaintiff in case the problem has not yet been settled.
The borrower has an option to pay these loans either before or during the process of the lawsuit and this can be extended to a monthly payment depending on the agreement that the borrower will have with the extender of the loan. Although in most times it will be for the benefit of the plaintiff’s convenience, since he or she will be given a chance to manage his or her finances better by allowing him or her to pay monthly.
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.
The pre-settlement cash advance is also granted to people who died because of the negligence and intentional acts of others, or may it be because of wrongful death. 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 is during these times where a pre-settlement loan is considered to make a big difference.
A lot of financiers are able to extend the plaintiff some money even before there is a settlement in the case during the legal process. 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.