You may have heard that a lawsuit loan can help you secure a bigger settlement. That is undoubtedly the case, and we’ll get to that. But before you explore the possibility of taking out a lawsuit loan to pay your current expenses with your future settlement, it is critical to understand how a lawsuit loan works. This affects your financial well-being and the future of your lawsuit.
What is a Lawsuit Loan?
When you have suffered harm resulting from the actions or products of another party, a lawsuit is the proper course of action to pursue compensation. You can seek repayment of any damages you have incurred (whether physical, emotional, or financial), such as medical bills, lost wages, or property damage. Sometimes you can also sue for punitive damages, especially in cases where the harm done was negligent or extreme.
Unfortunately, lawsuits can take a lot of time. The insurance company and/or the defense team representing the opposition in your case will likely draw out the process, possibly dragging it out for months or even years. These delays are a cynical strategy designed to leverage any financial hardships you may have to force you to accept a smaller compensation sooner.
This is where a lawsuit loan comes in. Also called a settlement loan or pre-settlement funding, a lawsuit loan gives you access to your future compensation now, so you can meet your financial responsibilities while your attorney continues to press for a better final settlement. A Tribeca lawsuit loan will help you level the playing field, so you can pay your bills and get back in charge of how your case is pursued.
How Do Lawsuit Loans Work?
A lawsuit loan uses your future settlement as the loan’s collateral. Collateral is security for the loan. It protects the lender, so they know they will be repaid. For instance, the house you take out a mortgage for typically serves as the collateral for the home loan. If you default on the loan, the lender can take back the home.
In the case of a lawsuit loan, the lawsuit’s future settlement is the only collateral, so no repayment is due if you receive no settlement. That’s because a lawsuit loan is considered a non-recourse loan. This is an essential point to understanding how lawsuit loans work we’ll discuss next.
What is a Non-Recourse Loan?
With a non-recourse loan, the collateral is the sole source of funds that can be used to repay the loan. The lender has no recourse to pursue payment from any other source.
At Tribeca Lawsuit Loans, we have no right to your income, property, or assets at any time, under any circumstances. Our loan is repaid from money in your settlement, or we don’t get paid! If you lose your lawsuit, you won’t owe us a dime!
Because we will never see a cent of your own money, we do not investigate your personal finances when you apply for a lawsuit loan. We ask:
- NO income verification
- NO employment information
- NO assets evaluation
- NO credit check
A non-recourse loan, like a lawsuit loan, poses no risk to your financial security. The most we can take from your settlement is the agreed-upon portion established in our loan offer to you. To reiterate, if you lose your case, you would owe us nothing!
Another key consideration with a non-recourse loan as opposed to other forms of lending is the taxes. A lawsuit loan is non-taxable. Both the loan and its repayment come from your lawsuit settlement and are legally considered part of your compensation. You will only owe taxes on your settlement loan if you use the loan money to make an investment.
How Does a Lawsuit Loan Work for Repayment?
Although Tribeca Lawsuit Loans is happy to help you secure just compensation, we aren’t looking for you to repay anything directly. Because your future settlement is the sole possible source to repay a lawsuit loan, we only ask the following questions in your loan application:
- What is the strength of your case?
- What are your total damages?
- What size settlement does your attorney anticipate?
- How long does your attorney expect the case to take?
Depending upon the answers to these questions, we can provide from $500 to $1,000,000 in your lawsuit loan.
To qualify for settlement funding from Tribeca, we do require that you be represented by an attorney or law firm in your lawsuit. Studies show that plaintiffs represented by skilled legal counsel benefit by increasing their likelihood of winning their case and getting better compensation when they do.
We will work closely with your attorney, though we will never interfere with their legal strategies. We work with your attorney from the beginning to the conclusion of your case. You won’t have to worry about repayment. Once your attorney accepts and receives the settlement on your behalf, they simply write us a check for the agreed-upon amount. They take their cut and then turn over the rest of the settlement funds to you. You will completely avoid:
- Monthly payments
- Any potential default on your loan
- The hassle of coordinating payment plans
If you are the plaintiff in a lengthy lawsuit and struggling to make ends meet, a lawsuit loan from Tribeca may be the solution you need. Not only does legal funding help you to pay your current bills, but it can even help you to win a larger settlement!
Is Interest Charged on a Lawsuit Loan?
Understanding the interest rate is crucial for learning how lawsuit loans work. We do charge a simple, non-compounding interest rate on every lawsuit loan. We also spell out the details in easy-to-understand language ahead of time.
Take care to avoid predatory lenders who set a high compounding interest rate that can eat right through the largest settlement!
How Does a Lawsuit Loan Work to Win a Bigger Settlement?
Now that you know how a lawsuit loan works financially, let’s see how it can help you get better compensation.
First, remember that the stall tactics by the defense are designed to force you into an early settlement for less money. A lawsuit loan enables you to counter that strategy, pay your bills, and continue to fight for the compensation they owe you. This is huge, but it’s just the beginning.
Because Tribeca Lawsuit Loans is invested in the successful outcome of your lawsuit, we may provide your attorney with case funding to pay for expert witnesses, testing, investigations, and other litigation expenses. These efforts can strengthen your case, prove your damages and help you to win a bigger settlement.
What Kind of Cases Qualify for a Lawsuit Loan?
Now that you understand how a lawsuit loan works, let’s look at the type of cases Tribeca funds. We work with clients in most states throughout the U.S. Each state has its own laws regarding legal funding, and these laws change. If you don’t see your state listed here, please contact us to see if we can assist you.
We have funded clients in a wide array of lawsuits and mass torts, including:
- Personal injury
- Car accidents
- Sexual abuse
- Employment law
- Medical malpractice
- Police brutality
- Pharmaceutical drugs
- Civil rights
- Commercial litigation
- Product liability
- Wrongful Imprisonment
And many more. Whatever the nature of your lawsuit, if you have suffered damages, a settlement loan can work to alleviate the stress of your current bills by acting as a cash advance on your future compensation.
How to Apply for a Lawsuit Loan?
Understanding how a lawsuit loan works to meet your current expenses by accessing your future settlement, how to apply for the settlement loan? We understand how stressful this time can be, so we have streamlined our application process. It’s as simple as:
- You apply: Simply fill out the information requested here.
- We evaluate: Our underwriting team will determine how much settlement lending we can offer you.
- You get your money: Once all the papers are signed, we can have your money deposited into your account within just 24-48 hours!
Soon, you can put your lawsuit loan to work for you!
Apply for FREE for a Lawsuit Loan with Tribeca
Are you in the middle of a lawsuit and need money to keep afloat? At Tribeca, we have the industry’s highest acceptance rate, and we fund our loans in as little as 24-48 hours from completing the documentation. Apply now or give us a call at (866) 388-2288 and speak with a member of our team.
Get the legal funding you need to continue your fight for the compensation you deserve.