Lawsuit Loans has emerged as a valuable resource for cash-starved clients struggling to make ends meet as they wait for pending litigation to be resolved. Although some members of the legal community were initially cautious of legal funding, it has proven itself to be an important and valuable financial solutions for both attorneys and their clients.
Benefits for Attorneys
From a lawyer's perspective, Lawsuit Loans creates a much-needed buffer between the financial pressures of clients and the
successful prosecution of the case.
It's no secret that litigation is a time-consuming process,
usually measured in months and years rather than days and weeks. While they
await the resolution of their case, clients are left financially exposed and
are unable to earn enough income for basic needs such as food, housing,
medication, or transportation.
Since attorneys are typically prohibited from giving their
clients financial assistance themselves, they spend a disproportionate amount
of time problem-solving financial issues instead of attending to the details of
the case. Consequently, the case is impaired and the attorney is frustrated by
his or her inability to provide the level of legal expertise the case deserves.
Lawsuit Loans alleviates the demands from needy clients on
attorneys' time and resources by empowering clients to meet their own financial
obligations while their case is winding its way through a lengthy legal
process. In essence, Lawsuit Loans gives lawyers the freedom to do what they do
best - practice law.
Benefits for Plaintiffs
Plaintiffs directly benefit from the cash they receive through legal funding. They can use the money to avoid eviction, make car payments, buy food, purchase medicine, or pay for a number of other essential living expenses. Beyond simply alleviating these acute financial stresses, Lawsuit Loans are receiving a warm welcome from plaintiffs simply because it gives plaintiffs extra options for solving their financial challenges.
Prior to the emergence of legal funding, many plaintiffs had very few options to address their financial problems as they pursued their cases in court. Traditionally, plaintiffs have been forced to turn to credit cards and other forms of borrowing for shortfalls that arise during the litigation process. If a plaintiff qualified for these loans - and many did not qualify due to low credit scores - payback of these loans was required regardless of the outcome of the legal suit. After running up their debts via these loans, many plaintiffs ended up in a significantly worse financial condition than they were before they filed the lawsuit.
Settlement Loans, in contrast, is not a loan. Naturally, Lawsuit
Loans companies do charge fees on their investment. However, the funds are only
required to be repaid if the client's lawsuit is successful. If the suit is not
successful for any reason, everyone goes their separate ways and the client's
obligation to repay the cash advance simply disappears.
