If you are currently in the middle of a personal injury lawsuit and you believe you are going to get a settlement or win your case in the future, but are a little short on cash right now, you should steer clear of a taking out a lawsuit loan. Here are the top three reasons you should avoid a lawsuit loan.
#1 It Is Incredibly Risky
Unless the ink is already drying on your settlement, you should not take out lawsuit loan because it is incredibly risky. You are essentially taking out a loan based on the idea that you will be awarded a specific amount of money in the future when you win or settle your case.
You can not predict what will happen with your case. Your settlement could be much smaller than you are expecting. You could go to court …show more content…
Instead, you will be on the hook for payment of your lawsuit loan. Often times, the lender will expect immediate payment and will not be interested in setting up a payment plan with you. When you take out a lawsuit loan, you are basically betting that you will win your case.
#2 It Will Cut Into Your Settlement
Even if you do get the settlement you were hoping for, a lawsuit loan is still not a good idea. You will first have to pay your lawyer with your settlement. You may also have to pay specific creditors who agreed to hold off on collections until you knew if you could pay them or not.
Additionally, the lawsuit loan is not going to be interest free. They will expect you to pay interest on the loan that you took out. This will further cut into your settlement and what you have left over to live with and to address the concerns that prompted the lawsuit in the first place.
#3 It Will Create A Lot Of Work For Your Lawyer
Finally, you should stay away from a lawsuit loan because it will create a lot of work for your lawyer. There is a good chance that your lawyer will not want to do this work or will charge you extra for it. Your lawyer may even disagree with the principle of a lawsuit loan and refuse to do this
#1 It Is Incredibly Risky
Unless the ink is already drying on your settlement, you should not take out lawsuit loan because it is incredibly risky. You are essentially taking out a loan based on the idea that you will be awarded a specific amount of money in the future when you win or settle your case.
You can not predict what will happen with your case. Your settlement could be much smaller than you are expecting. You could go to court …show more content…
Instead, you will be on the hook for payment of your lawsuit loan. Often times, the lender will expect immediate payment and will not be interested in setting up a payment plan with you. When you take out a lawsuit loan, you are basically betting that you will win your case.
#2 It Will Cut Into Your Settlement
Even if you do get the settlement you were hoping for, a lawsuit loan is still not a good idea. You will first have to pay your lawyer with your settlement. You may also have to pay specific creditors who agreed to hold off on collections until you knew if you could pay them or not.
Additionally, the lawsuit loan is not going to be interest free. They will expect you to pay interest on the loan that you took out. This will further cut into your settlement and what you have left over to live with and to address the concerns that prompted the lawsuit in the first place.
#3 It Will Create A Lot Of Work For Your Lawyer
Finally, you should stay away from a lawsuit loan because it will create a lot of work for your lawyer. There is a good chance that your lawyer will not want to do this work or will charge you extra for it. Your lawyer may even disagree with the principle of a lawsuit loan and refuse to do this