What Are Pre-Settlement Loans?
If there is a favorable settlement that is being anticipated, it is possible for a plaintiff to be granted cash payments through a pre-settlement loan, as the term implies. In the different categories of legal loans, the pre-settlement loan falls under the ‘non-recourse’ category, which means that the extender of the loan is forbidden to collect any amount of money form the borrower if the case has not yet been settled.
These loans can either be paid in full before or during the time where the lawsuit is still being processed, or it can be extended on a monthly basis depending on the contract that the borrower and the extender of the loan have. Most of the time, the recipient’s convenience is highly to be taken into consideration although it is generally agreed that the plaintiff will be allowed to have monthly payments to enable him or her to management his or her finances better.
Pre-settlement funding is granted to people who have been injured or lose someone who is in their work while in the course of duty, or it can be for a plaintiff with a case that is going on due to negligence of others and claim for damages.
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 will be during these times where a pre-settlement loan will be considered to give a huge impact on the case.
Even before the legal process is complete, some loan extenders are able to hand in some money to the plaintiff to help them with their settlement case. 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.