There are times when a person is being harmed or injured by another person, whether intentionally or unintentionally, due to the latter’s actions or negligence. With this, the injured party may file for a settlement lawsuit against the one that caused the injury. In case the plaintiff wins the lawsuit, the court will require the defendant to pay the plaintiff a certain amount of cash for settlement. This cash settlement may come either in a lump sum money or through a structured settlement, which is often preferred by most individuals, as this is more advantageous to both the plaintiff and the defendant.
But because of the long litigation process which is the usual thing that happens, the plaintiffs may be faced in certain financial difficulties. Usually, these plaintiffs could not get a steady job due to medical reasons that are caused by the injury. Thus, some of them cannot really pay for their finances, including litigation, medical, household, and day-to-day expenses. This is the main reason why most plaintiffs are faced with no option but to borrow money from settlement loan providers. A settlement loan is a type of loan that is exclusively offered to the plaintiffs or injured parties of a settlement lawsuit, while the case is still pending litigation. The most wonderful thing about settlement loans is that the borrower does not have to pay for the money that he has borrowed in case the court does not decide in his favor. But there is a disadvantage as well, and this is the very high interest rate and other fees.
That is why the plaintiffs need to think it thoroughly well before applying for a settlement loan. Also, he needs to inform his lawyer before he finally applies for the loan, as the settlement loan providers will eventually contact the borrower’s lawyer to get some information and documents about the status of the case. Of course, because of the risk that they are taking, they want to make sure that they only approve the loan applications of those who have bigger chance of winning the case.