What Happens if I Default on Repayment

What Happens if I Default on Repayment?

Pre-settlement legal funding from Tribeca Lawsuit Loans comes with no risk to you, the borrower. This lack of risk is due to a variety of factors, but one of the benefits that our clients love most is the lack of any risk of default. Our pre-settlement legal funding is non-recourse in nature, which means it is tied not to your personal finances but to the collateral associated with the funds (i.e. a portion of your eventual compensation package through negotiations or through a jury award). We receive repayment through a one-time check from your attorney at the conclusion of your lawsuit. There are no monthly payments and the money does not come out of your personal finances, so there is no chance of default!

Also, by working directly with your attorney or law firm when it comes time for repayment, Tribeca Lawsuit Loans’ repayment process doesn’t require any effort on your part. If you are ready to get the money you need today so that your attorney can negotiate a proper compensation package for tomorrow, consider pre-settlement legal funding from Tribeca Lawsuit Loans.

Fill out the FREE application on our Apply Now page to get the funding process started. If you have any questions or concerns about repayment or any other issue related to pre-settlement legal funding, call our office at (866) 388-2288. One of our skilled professionals will be happy to clarify the process for you.

How the Pre-Settlement Legal Funding Repayment Process Works

When you get pre-settlement legal funding, you essentially borrow from your future settlement or jury award. Tribeca Lawsuit Loans secures the funding we provide with a portion of your compensation as collateral. Unlike some other lawsuit lenders, we do not charge compound interest. Instead, we use simple interest calculated from the base amount of funding you initially receive.

Below is a short breakdown of the repayment process at the conclusion of your case.

  1. After much deliberation, your lawsuit ends in either a settlement agreement or an award from the court for compensation.
  2. Your lawyer receives a check from the opposing party for the agreed-upon compensation amount.
  3. Then your attorney writes Tribeca Lawsuit Loans a check for the agreed-upon repayment amount.
  4. After any applicable court or attorney fees, you keep the rest!

This process requires no action on your part. Your repayment comes to us as a lump sum, without the need for monthly payments. Therefore, there is no opportunity for you to default on the repayment! Plus, since pre-settlement legal funding functions as non-recourse debt, you are not held personally liable for the repayment amount. In the event that you do not win your lawsuit, you don’t have to repay the funding! You keep your funding and Tribeca Lawsuit Loans takes the hit. That’s why we say it is risk-free for you.

Other Ways Your Pre-Settlement Legal Funding Is Risk-Free

Not only does pre-settlement legal funding protect you from the risk of default, but it also has other benefits. Unlike other types of loans, pre-settlement legal funding is entirely tied to the compensation you expect to receive at the conclusion of your lawsuit. That means it isn’t tied to your personal finances and we do not have to look into your bank statements or perform an invasive dive into your family’s income.

Additionally, many people worry about hits to their credit score when they default. Your credit score can affect your ability to borrow money in the future (say, in the event that you wish to purchase a house through a home loan). However, pre-settlement legal funding does not require a credit check and should not show up on your credit report. Since there is no risk of default, and Tribeca Lawsuit Loans does not have to do a hard credit pull when providing you with pre-settlement legal funding, you are protected from any negative impact to your credit rating.

Why You Should Get Pre-Settlement Legal Funding

The funds you get from Tribeca Lawsuit Loans instantly become your own money. That means you can do with it as you please. Plus, since it is tied to (and considered a cash advance of) your compensation package, it typically is not taxed. One of the few exceptions to this is when you use your pre-settlement legal funding to make investments. In that case, any money you spend on investments would be taxed just like a typical investment.

Expenses that our clients typically use their pre-settlement funding to cover include:

  • Monthly rent or mortgage payments
  • Daily expenses like food, gas, and similar items
  • The purchase of any necessary medical equipment
  • Paying off medical bills

Not only does the use of pre-settlement legal funding cover your necessary expenses, but it also allows your attorney additional time to fight for appropriate compensation. Usually, the opposing side in a lawsuit will try to stall negotiations so that you feel pressured by lost wages and past-due bills. Their hope is that you agree to a lowball settlement out of desperation, but pre-settlement legal funding can help you outlast their stalling and get the compensation you truly deserve.

Apply for Pre-Settlement Legal Funding Today for FREE

Pre-settlement legal funding is truly a way for lawsuit claimants to take care of daily expenses while their lawsuit concludes. At Tribeca Lawsuit Loans, the application process for pre-settlement legal funding is FREE. You’ve got nothing to lose and up to $1,000,000 to gain by applying for funds from our underwriters.

Fill out the form on our Apply Now page to get the funding you need today. If you have other questions or concerns, simply call our office at (866) 388-2288 to speak with a representative.

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