If there is a favorable settlement that is being anticipated, it is possible for a plaintiff to be granted cash payments through a pre-settlement loan, as the term implies. There are categories of legal loans and this pre-settlement loans belong to the ‘non-recourse’ category which means that the extender of the loan has no way of collecting any money if the plaintiff’s case is not yet being settled.
The borrower has an option to pay these loans either before or during the process of the lawsuit and this can be extended to a monthly payment depending on the agreement that the borrower will have with the extender of the loan. Although in most times it will be for the benefit of the plaintiff’s convenience, since he or she will be given a chance to manage his or her finances better by allowing him or her to pay monthly.
A pre-settlement cash advance will only be granted to the plaintiff in case there is an official lawsuit that is being filed because of the damaged incurred due to the negligence of others, or it can also be because they have suffered some form of loss or injury in their workplace at the time when they are working.
The pre-settlement cash advance is also granted to people who died because of the negligence and intentional acts of others, or may it be because of wrongful death. There is a possibility for the plaintiff to point another as the cause of the death of his or her loved one may it be somebody from the government, a certain person, or a corporate body. Nevertheless, we can never rule out the possibility that the close relatives of the deceased may be able to launch wrongful death cases because they do not have enough money to seek for the right person to deal with. It will be during these times where a pre-settlement loan will be considered to give a huge impact on the case.
Even before the legal process is complete, some loan extenders are able to hand in some money to the plaintiff to help them with their settlement case. In case the defendant’s lawyer will think that they have no chance in winning the case at all, he will advise his client to do a settlement which means that money and time will be saved since they no longer have to wait for the conclusion of the case. As soon as this happens, the plaintiff’s pre-settlement loan will be recovered with all the interests paid for by the defendant as well.
There are different pre-settlement cash advance interest rates that are being offered by a lot of financiers that is why it would be better for the plaintiff to do some research first before committing to a loan extender about this.