Lawsuit Cash Advances

1. What Is the REAL Cost of a Lawsuit Loan versus a Bank Loan?
2. When Lawsuit Loans Make Sense
3. Lawsuit Loans Are Really NOT Loans
4. Use a Lawsuit Loan to Re-Establish Your Credit!

What Is the REAL Cost of a Lawsuit Loan versus a Bank Loan?
In terms of just the cost of the use of the money, a lawsuit loan will always be more expensive than a bank loan. However, that is just one dynamic of the issue. Even a clock that is broken shows the right time twice a day! The hidden cost of a bank loan is the cost of defaulting on it.

Jeff was injured, could not work, and was forced to file a lawsuit to collect damages from the party that caused his injuries. Although Jeff was not working, he had pretty good credit, so he got a bank loan to cover living expenses. That was fine for four months until Jeff ran out of money. He managed to stay in his apartment, but his car was repossessed and he defaulted on the loan. He did finally receive a settlement, but he now has no car, his credit is ruined, and it will take him years to rebuild his credit to the point that he can qualify for a car loan.

Sarah was injured, could not work, and was forced to file a lawsuit to collect damages from the party that caused her injuries. Instead of a bank loan, Sarah opted for a lawsuit loan. The money covered her expenses for four months, then she received a second loan. While dollars were tight, Sarah managed to stay current on her credit cards and auto loan. When her case settled, Sarah got less from her settlement than Jeff got from his settlement because Sarah’s lawsuit loan plus the risk premium on the loan was paid back out of her settlement. However, Sarah still has her car and good credit.

When Lawsuit Loans Make Sense
Any lawsuit loan company will agree that a lawsuit loan is not appropriate for every plaintiff involved in a lawsuit. For the plaintiff in need of funding, there are other sources of cash that should be considered first.

• Savings: While few people save today, those that do should first draw upon any money they have in a savings account or at their credit union.
• Life Insurance: Whole life insurance policies build cash value, and you can borrow against that cash value. And doing so does not reduce the level of insurance coverage.
• 401-K or IRA: While these are intended for retirement, borrowing against them is better than eviction or bankruptcy. Money can be taken from a retirement account and there is no penalty if it is repaid with six months. If it is not repaid, you will have to pay taxes on what you withdrew, but this is also better than filing for bankruptcy and losing your home and car.

Conventional borrowing has a significant downside over lawsuit loans: Monthly payments! Whether you get a cash advance on a credit card, use a personal or home equity line of credit, or get a conventional loan, you have to start making payments immediately! That means that in addition to all of your current monthly obligations, you now have yet another new monthly bill, your monthly payment on the loan or line of credit!

Lawsuit Loans Are NOT Really Loans!
While lawsuit advances and other types of lawsuit financing are often referred to as “lawsuit loans” they are not really loans at all. Here are the fundamental differences.

• Easier to Qualify: To receive a conventional loan, you must have good credit and be able to verify your employment. Neither is necessary to qualify for a lawsuit loan!
• No Monthly Payments: To receive a conventional loan, you must have good credit and be able to verify your employment. Neither is necessary to qualify for a lawsuit loan!
• Non-Recourse: A bank loan must be repaid regardless of the outcome of your lawsuit. A lawsuit loan is only repaid if you win your case or reach an out-of-court settlement.

In fact, for the lawsuit plaintiff who receives a lawsuit loan and loses his case, the lawsuit loan is the only money that plaintiff receives from his lawsuit!

Use a Lawsuit Loan to Re-Establish Your Credit!
A unique dynamic of lawsuit loans is that they do not show up on your credit report. Just as you would not report the expected proceeds of a pending lawsuit as an asset, you do not report a lawsuit loan as an obligation. That presents a unique opportunity for plaintiffs in lawsuits who also have credit problems!

The Catch-22 that people with credit problems face is that they cannot get credit when they need credit most. Since a lawsuit loan is NOT granted based on your credit rating or income, you can qualify for a lawsuit loan even though you would never qualify for a bank loan or line of credit.

Use the proceeds of your lawsuit loan to first catch up on any past-due accounts. Do not pay off any loans or charge cards, pay just enough to get current with every creditor, then stretch out the balance to make minimum payments so you stay current until your lawsuit settles.

When you win your lawsuit or reach a settlement, your lawsuit loan will be paid back from the proceeds of your settlement. You can then use the balance of your settlement to pay off all or a portion of your remaining bills. The result is that a lawsuit cash loan enables you to improve your creditworthiness and reduce your total indebtedness!

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We understand the importance of quickly meeting our clients' financial needs. Most decisions are made within 48 hours of receiving all the requested documents from your attorney. We always welcome your inquiries. Call us today at 1-877-788-CASH for a confidential, no-obligation evaluation of your case, or apply online now.

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