More about Lawsuit Advances

Lawsuit advances are a source of cash that should be spent prudently. The money from a lawsuit advance is intended to replace lost income and designed to ease financial strain. It is important for plaintiffs to use the money judiciously, especially since it is often unknown how long it will take for the plaintiff’s lawsuit to be settled.

When a person is a plaintiff in a lawsuit, he or she is often either suffering from a personal injury or a loss related to a wrongful death. If you suffered a personal injury, you can be temporarily injured or even permanently disabled. If you were injured, you may be facing lost income because you were unable to work while recovering. If you were disabled as a result of your injury, you may be unable to return to work. In both cases, you may face both the need to cover your regular living expenses and the additional costs of medical care, prescription drugs or rehabilitative services. If you lost a loved one to wrongful death, you may be facing the loss of that person’s income as well as other losses. For example, your healthcare coverage may have been provided by that person’s employer. The trauma of the loss may also affect your ability to work and earn an income. The settlement proceeds of your lawsuit are meant to help you with these losses and expenses, but it can easily months–or even years–to see actual cash proceeds from the final settlement of your lawsuit. If you need money now, a Litigation Loan is an option to consider.

When you receive a lawsuit loan, you can legally do anything you want with the money. However, LawMax encourages recipients of lawsuit advances to spend the money carefully to make the most of the available cash. Critical past due bills should be paid first. For example, if you are behind on your rent, mortgage or car payments, using your lawsuit advance to pay the arrears can help you avoid eviction, foreclosure or repossession. The second priority should be paying basic bills such as electricity, gas, telephone and other utilities to prevent these services from being cut off. You should also make only the minimum payments on credit cards, just enough to stay current. If you have any money left over after making these payments, you should set that money aside for next month’s expenses. This will extend the benefits of your lawsuit advance while you wait for your case to be settled.

If you do use up your advance, you can apply for an additional lawsuit advance from LawMax. When you apply for additional funding, LawMax does not have to go through the entire application process with you again since we already have your case documentation on our secure servers. If you apply for second or third lawsuit advance from LawMax, the process is much faster since we only need to contact your attorney to get updated information and documentation about your case. If we can provide you with additional funding, that advance should also be used wisely.

LawMax will work to provide you with as much funding as we can without affecting the outcome of the case. In general, we do not offer lawsuit advances for more than 10% of the expected settlement. This helps ensure that there is enough money from the proceeds of the lawsuit to cover attorney fees, make money available to other lien holders, and still have a settlement for the plaintiff.

Lawsuit funding from LawMax, regardless of the quantity or the number of advances that are made, are all non-recourse. The plaintiff is only required to repay the advance if and when he or she wins the case or reaches and out-of-court settlement. Should the plaintiff lose the case or decide to drop the case, the plaintiff owes nothing!