Lawsuit Cash Advance
If you are involved in a lawsuit, it may take months, or even years for your case to settle. While waiting for your case to settle, it may become difficult to pay bills or run your business. You can accept a low settlement for a case that could be worth hundreds of thousands if not millions of dollars or you could obtain a lawsuit cash advance. With a lawsuit cash advance you can use the money for your living expenses, medical bills, or to run your business. Whatever your need is, you will have money to give you staying power to get the settlement you deserve. $ THE PROCESS Your case must be at least 4 months old. This gives your attorney time to obtain all the documents for your case that we need to consider your application. And by the way, our attorney's will in no way interfer with how your attorney runs their case. Our attorney's review your case and speak with your attorney about your cases to see if the case has a chance of being won.
With convential loans: You must repay the money whether you win or lose your case. We don't care how much money you have. Your credit is not important to us. We take cases purely on the merits of the claim. FOR THE ATTORNEY:
$ THE COST The funding source does not charge an interest rate like a bank because they are not providing loans. There is however a "risk premium" that is charged. This risk premium charge is compounded monthly and is anywhere from 2 to 9% depending on the funding source and the type of case being funded. Some funding sources also will charge an application fee as well as a broker fee. Because lawsuits come from an asset class with a unknown outcome and a uncertain maturity date, lawsuits are risky investments. The higher rates charged by the funding source reflect the high transaction cost associated with processing, orginiation and servicing small advances. In spite of the higher cost for an lawsuit cash advance there are no monthly payments, the risk premium, application and broker fees if they apply and the amount advanced are all paid once the case has been settled. If the case is lost, there is no charge to the person who received the lawsuit cash advance. $ HOW MUCH OF AN LAWSUIT ADVANCE CAN I GET? $ IS IT LEGAL? Because of ethical rules in most jurisdictions, attorney's are prohibited from giving money to their clients for personal living expenses. While there are no laws against litigation funding, serval states have render ethical opinions on the subject. There are also some myths that persist about lawsuit cash advances. Legal funding is growing, so let's separate the facts from fiction. Myth #1. Lawsuit cash advances exploits plantiffs. A common misconception about lawsuit cash advance is that it exploits vulnerable plaintiffs at a time when they are least able to make informed decisions. This myth is especially prevalent among attorneys, who are concerned that unscrupulous lenders might take unfair advantage of their clients. In reality, advances provide a means of escape for people who have been backed into a financial corner by circumstances and the slow wheels of the legal process. Most of the people needing these advances are living paycheck -to- paycheck with no savings. While the legal fees are handled on contingency, having enough money to meet basic living expenses can be a challenge for many plantiffs. With a lawsuit cash advance, living expenses can provide relief from accumulating bills, possible eviction or foreclosure, and put food on the table.
Lawsuit cash advances acts as a safety net for people who don't have the resources to withstand prolonged litigation. Without third-party funding, a difficult financial situation would likely deteriorate into a financial disater and the plaintiff would not be able to wait for a fair and complete resolution of their case. The plantiffs attorney can also provide some counsel in the matter of obtaining a lawsuit cash advance. Myth #2. Lawsuit cash advances are loans. Lawsuit cash advances are very different from traditional loans and other credit alternatives. The major difference is that loans always, always, always require that the loan be paid back and you must deal with the heavy burden of monthly payments regardless of whether you win your case or have the money to repay it. In many cases the loans increased the plantiff's personal finance problems. With mounting personal debts, many plantiffs end up in a significantly worse financial condition than they were in before they filed the lawsuit. No, slow, or late payments of loans will have an affect on your credit rating, lowering it significantly. If a loan is given, the interest rate will be much higher than it would be for someone with a higher credit score. With a lawsuit cash advance, IF YOU LOSE YOUR CASE, YOU OWE US NOTHING and since the advance is NOT a loan it does not appear on your credit record. Myth #3. Lawsuit cash advances promote frivolous litigation. These advances are an investment in the case. If an advance is given and the case is lost, the plantiff owes us nothing. Why would any funding source promote a frivolous case knowing that they would be losing the money they advanced? Each case is reviewed for its likelyhood of winning by practicing attorney's that know what to look for in each case. Any case that does not have good creditable documentation and a possibility of winning will not be given an advance. Myth #4. Lawsuit cash advances rates are much to high. Since a funding source is not providing a loan, traditional bank rates do not apply. Our clients (the plantiff) come from an asset class with an unkown outcome, and uncertain maturity date, and no current ability to service the advance. Funding sources internal cost of funds, annual loss rates, over head, wages, benefits and other general operating costs normally exceed 30% a year. The higher rates also reflect the high transaction costs associated with processing, orgination and servicing small advances. Furthermore, these advances do not require repayment if the case is lost. You won't get that with any bank/payday loan or using your credit card. Myth #5. Lawsuit cash advance funding sources interfer with the legal process. This fear is one that the attorney has, that once a plantiff engages the services of a legal funder, the funder will exert pressure on the attorney to settle the case and repay the funding advance. In reality, the funding source never gets involved with the case. All legal strategy and settlement decisions are made by the lawyer and his or her client. Best practices defined by the American Legal Finance Association, an industry trade group, reinforces the strict practice of non-interference, and it is being codified into an emerging legislative framework for regulating legal funding companies. Myth #6. The legal funding industry is largely unregulated and open to abuse. When legal funding was in its infancy, regulation and oversight were sorely lacking in the industry. Now days, legal funding is becoming an increasingly regulated industry, with practices designed to protect plantiffs' best interest. The American Legal Finance Association is leading the way in establishing the highest standards and a set of business practice principles for the legal funding industry.
Myth #7. Lawsuit cash advances violate usury laws. By making an advance against a pending case based on the future value of a case that may or may not be settled, the funding source shares the risk of recovery and/or loss together with the plantiff and the attorney. If the case is lost there is not repayment of the advance or fees associated with the advance. In fact, courts throughout the united states have held that such "at risk" advances are not loans. Myth #8. Lawsuit cash advances will make it harder to settle a case. Our role is to provide the plantiff with a small advance for living expenses to give their attorney time to properly handle their case. Without this advance many plantiff's would have to settle their case for far less than the case is worth. How long a case last is not dependent on the funding source, but the legal process itself.
Click on the link below to read other information cases and ethical opinions on lawsuit cash advances. 
Which Cases Qualify For A Lawsuit Cash Advance?We provide lawsuit cash advances to both plantiffs and their attorney's against many types of cases with good liability and documented damages.Personal Injury Lawsuits Employment Cases: Wrongful Termination Medical/Mal Practice Cases: Wrongful Death Worker's Comp Cases: Considered in the following states: AZ,CO,CT,DE,FL,IA,ME,MI,MT,SC,NE,OK,TN,VT,WV Business and Commercial Litigation Contract Disputes Inheritance Claims Appellate Litigation We understand the importance of quickly meeting your finacial needs. Most decisions are made within 48 hours of receiving all the requested documents from your attorney.
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Lawsuit Cash Advances vs. Payday LoansThere is a lot of confusion about lawsuit cash advances and payday loans. Not only are they different they are the exact opposite of each other. Here is what you need to know about payday loans.Very Short Term: A payday loan is a very short-term loan (usually no more than two weeks) against the debtor's next paycheck. The applicant shows up with his or her last paycheck stub and some identification, and within a few minutes is approved for a loan for as much as the applicant's take-home pay. A payday loan, as the name implies, is a loan against the applicant's next paycheck and must be repaid on the recipient's next payday. As soon as the recipient of the payday loan gets his paid, he must return to the payday loan center and pay off the loan. Very Expensive: Payday loans are very expensive because the payday loan grantors charge both interest and a service charge. As a result, some payday loans actually work out to 200% to 300% interest! In fact, many payday loans are actually more expensive that lawsuit advances! The Applicant Must Have a Job: To qualify for a payday loan, the applicant must have a job. Not the case with a lawsuit advance in which employment is NOT a factor. Here is just one area in which payday loans and lawsuit advances are not just different, they are diametrically the opposite of each other. PayDay Loans Quickly Become Addictive: The problem with a payday loan is that while it meets the applicant's immediate cash needs, it must be paid back when the applicant gets his or her next paycheck. That means the debtor gets his paycheck, but he is immediately broke because all or most of his paycheck must go to pay off the payday loan he received just two weeks ago. Many payday loan recipients end up immediately applying for another loan against their next paycheck. In fact, many payday loan recipients get a payday loan every two weeks, paying off the last loan with their current paycheck and getting a new loan against their next paycheck. Lawsuit Advances Are One-Time Transactions: For most clients, a lawsuit advance is a one-time transaction to provide immediate cash to pay living expenses. Sometimes lawsuit plaintiffs return and apply for a subsequent advance. Each advance is based on the settlement amount and the number of liens that have been placed on the future settlement. But whether the recipient receives one or two advances, no payments have to be made until the recipient's lawsuit has settled. PayDay Loans Are Full Recourse: Unlike a lawsuit cash advance which is non-recourse, a payday loan must be repaid, regardless of the recipient's ability to repay it. If a payday loan recipient loses his or her job and cannot repay the advance, that's just too bad. The debtor is on the hook to repay the loan plus interest and service charges, and the payday loan company will use all remedies available to get repaid!
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