The Pros & Cons of Litigation Loans
In our society today, it seems like more and more people are looking to file lawsuits in an effort to settle their discrepancies and issues they might have against one another. In years past, issues were usually solved in to ways – some sort of a yelling or screaming match, or that screaming escalating into full-fledged fight, and violent situation. And it wasn’t too uncommon for this violence to quickly go from a hand to hand situation to a situation where guns and other weapons are drawn, and someone easily being shot and killed. And while lawsuits aren’t the best thing, and certainly say something about our society, they have put an end to a lot of senseless violence when it comes to discrepancies such as that. According to the team at Apex Legal Funding, known for the best legal funding NYC has to offer, one of the biggest issues with these personal injury suits is that often they put the plaintiff out of commission and leave them unable to pay all their household expenses. And while it might seem to be great, there are a number of different pros and cons out there when it comes to litigation loans. In this article be will be exploring these pros and cons, and helping clients to best identify whether plaintiff funding is right for them.
The Benefits of Litigation Loans
Although no two cases are exactly alike, there are significant benefits of pre-settlement loans. First, a lawsuit loan can give you financial peace of mind while your lawsuit is pending. An advance can help you cover your living expenses like mortgage payments, car payments, medical expenses, and childcare until your lawsuit ends. This can prevent you from incurring significant debt during a lawsuit.Most importantly, litigation financing can give you more time to negotiate a favorable settlement with the defendant. As a plaintiff, the goal of your lawsuit should be to obtain a fair result. Sometimes, the lawyers for the defendant or representatives for the defendant’s insurance company will do everything they can to reduce the amount of your settlement.
Its very important in these types of legal instances to play your cards close to your vest, as once the defense sees that you are in a position in which you need money, they will do their best to pressure you into accepting a low-ball settlement figure, and pretend that they are not willing to go up from that figure at all. If the defendant refuses to offer you a fair settlement, a pre-settlement loan can help tide you over until a trial. The closer you get to a trial, the more likely the defendant will be to settle your claims in your favor. According to the team at Apex, in the event you are able to hold off, their figure will certainly increase, but you need the financial wherewithal to hold off, and not accept the short money, and wait for the longer, possibly life-changing money that they will likely off soon.
The Negatives of Litigation Loans
When you are looking to get plaintiff funding, while there are a number of different benefits out there, don’t live in ‘lala lands’, and try to make sound decisions and work with reputable companies such as Apex Legal Funding, known to offer the best legal funding NYC has around. But no matter who you work with, there are certain drawbacks to the process itself, as nothing in this world is perfect. As with all consumer financial products, there are some drawbacks to pre-settlement loans. First, all pre-settlement loans accrue interest. If you find a reputable lender, your rates might be as low as 1–3%. Because lawsuits take several months (or even years) to come to a conclusion, the interest on a pre-settlement loan can add up over time.Second, not all lawsuits qualify for a pre-settlement loan. A reputable litigation financing company will only take cases that it knows have a high chance of success. Finally, because lawsuit loans are a relatively new concept, they are not strictly regulated in most states. In the world of plaintiff funding, it can be difficult to find an experienced and reputable lender, which is why you should carefully research litigation financing and select a company that both you and your attorney trust.
For more information on plaintiff funding, be sure to contact Apex Legal Funding today.