ALL >> Business >> View Article
How Litigation Loan Helps Plaintiffs Shuffle Off Forced Settlement
Getting a non-recourse litigation loan means you need not repay until you receive your settlement amount. If you lose the case or the settlement amount is just not enough, the lender will not require additional repayment. You can take the loan in a lump sum amount, or get a specific amount every month to help you with your immediate financial needs.
It is not uncommon to face a financial crunch when waiting for a settlement to come through on a personal injury claim in Toronto. Unfortunately, savings and other investments of those injured often fall short to help tide them over. It is not just the unexpected medical expenses, but day to day expenses such as children’s tuition fees, utility bills and more. In such a scenario, litigants may feel compelled to accept a small settlement from the defendant offered early on in the process.
To prevent a forced settlement, plaintiffs require funds. If the injury has forced them out of work, getting a loan from traditional sources may be next to impossible. Banks generally won’t lend until they see proof of income and assets. As a result, one viable option left may ...
... be a non-resource litigation loan. These loans differ from the ones you may get from a bank. They are non-recourse advances provided to a claimant in litigation. The objective is to help them out in the difficult waiting period so that they can meet their immediate financial needs.
As a non-recourse loan, a litigant will only ever have to repay the loan out of funds received from their claim. That means that a litigant need not repay until they receive settlement funds or funds from a successful court judgment. If the settlement amount is not enough to repay the advance, or the individual simply loses the case, the litigation loan company will absorb that loss.
Before you set out to get a loan, it is important that you understand the difference between a recourse loan and a non-recourse loan. Recourse loans are those where the borrower has personal liability for the loan, and the lender can seek repayment from any asset of the borrower.
In addition, most loans require that you start paying interest on the loan right away. With a litigation loan, interest accrues but no payments are required until the conclusion of your case. With most loans, it doesn’t matter whether you get a settlement or not. You have to pay back. With a litigation loan, if you lose the case, you do not need to repay your loan.
There are a few litigation loan companies that provide non-recourse loans. Often, you can choose between taking an amount in a lump sum or get a specific amount every month to help you with your immediate financial needs. When providing you such a loan, the lenders won’t look at your sources of income, credit or bank balance. The only thing they are concerned about is the merit of your case. If your case is sound enough to get a favorable outcome in court, they will more than likely be willing to provide you with a loan.
The company will usually talk to your lawyer to discuss the merits of your case. They may also ask for the documents related to the case. Their team of experts will peruse these to arrive at a conclusion. They can often inform you about their decision in less than 48 hours. As for arranging for the repayment when the settlement documents are received, your lawyer and the financing company will deal with the repayment and send you the net amount.
If you are not aware of a company that provides non-recourse litigation loans, your lawyer may be able to provide you with a reference. Personal injury law firms Toronto are not allowed by law to lend to clients, so they cannot provide financial assistance on their own. However, you can expect a seasoned lawyer to be aware of companies that do provide such loans to litigants.
Their application process is fast, as these companies understand the importance of making a quick decision for litigants. Timely financial help will allow you to stand your ground, withstanding the pressure from the defendant for a quick settlement.
The author of this article is associated with Easy Legal Finance Inc. that provides litigation loans. They enable plaintiffs to meet their immediate financial needs and increase their chances of a successful settlement.
Add Comment
Business Articles
1. Finding A Trusted Sustainability Consultant In Abu DhabiAuthor: Agile Advisors
2. Iso Certification In Dubai – Advantages For Business
Author: Agile Advisors
3. Best Forex Brokers List | Best Broker For Forex Trading 2024
Author: Top Forex Brokers Review
4. Celebrate Achievements With Customized, High-quality Awards From Trophy Deals
Author: Trophy Deals
5. Is 100% Company Ownership Possible For Expats In Saudi Arabia?
Author: jodonjo
6. We Are Hiring: Senior Executive - Indirect Taxation In Gurgaon!
Author: tanvir Khan
7. Ceratec Tower 1o8: The Eventual Fate Of Business Greatness In Balewadi, Pune
Author: Tarun
8. Enrofloxacin Manufacturer: Swisschemie
Author: Swisschemie
9. Ultimate Guide To Hotels In Mussoorie: Discover The Best Places To Stay, Including Hr Hotels And Resorts
Author: Hr Hotels and Resort
10. How Quickly Do Fast Cash Loans Online Pay Out Cash On The Same Day?
Author: Lucy Lloyd
11. Leading Digital Marketing Agency In Hyderabad And Unlock Your Brand’s Potential With Sanbrains Agency
Author: Sanbrains Seo
12. Celebrate Success With Customized Awards From Trophy Deals
Author: Trophy Deals
13. Title: Choosing The Right Humidity Stability Chamber Supplier For Your Manufacturing Needs
Author: bio gene
14. Complete Guide To Studying Mbbs In Poland
Author: Mbbs Blog
15. What Is The Process For Locating The Best Lender For Short Term Loans Online?
Author: Robert Miller