What Does Getting a Loan against a Lawsuit Mean?

Getting a loan against a lawsuit settlement is a common practice in the legal world. Here are the basics of a lawsuit loan and how it could benefit you if you have a pending lawsuit.

Lawsuit Loans

This is a type of loan that is given against a pending settlement in your favor. If you are in the running to receive some type of financial settlement in a lawsuit, a lender may be willing to give you the money up front. This is typically done before a settlement is announced.

Benefits

One of the big benefits of using this type of loan is that it gives you money quickly. You do not even have to wait to hear if a verdict will be ruled in your favor. The loan company does their due diligence and offers loans only if they feel good about the prospects of getting a large settlement. However, even if the settlement turns out to be less than the loan amount, you do not have to pay anything back to the loan company. This is a big gamble on the part of the lender, but it can work to your advantage as an individual.


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