Loans That Are Pre-Settled
As the name implies, a pre-settlement loan is a cash payment that is given to the plaintiff with regard to a favorable settlement. There are different categories of legal loans which include the ‘non-recourse’ category that a pre-settlement loan falls under, meaning there is no way for the extender of the loan to collect any amount of money from the plaintiff in case the problem has not yet been settled.
These loans can either be paid in full before or during the time where the lawsuit is still being processed, or it can be extended on a monthly basis depending on the contract that the borrower and the extender of the loan have. Most of the time, the recipient’s convenience is highly to be taken into consideration although it is generally agreed that the plaintiff will be allowed to have monthly payments to enable him or her to management his or her finances better.
Pre-settlement funding is granted to people who have been injured or lose someone who is in their work while in the course of duty, or it can be for a plaintiff with a case that is going on due to negligence of others and claim for damages.
If the plaintiff has a loved one who died because of the intentional and negligent actions of others, or because of wrongful death of a loved one, then he shall be granted pre-settlement funding. In cases such as this one, the plaintiff is able to hold a certain person responsible for the death of their loved one may it be the owner of the company, somebody in the government, or a corporate body. However, there is a possibility that the close relatives of the deceased will launch a wrongful death case as a result of some under constrained financial circumstance. This is where a pre-settlement loan is most needed.
A lot of financiers are able to extend the plaintiff some money even before there is a settlement in the case during the legal process. There are defendant lawyers who are already expert in these cases who knows the probability of their client’s losing the case that is why they will immediately advise their clients to have a settlement so that there will be no need for the case to go on anymore. As soon as this is agreed upon, it is now possible for the pre-settlement loan of the plaintiff to be recovered together with its interest.
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.