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What You Need To Do To Get A Settlement Advance?

18th March 2010
By Rudy Silva in Business Law
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Do you want to know more about settlement advance? It is a financial program styled to help plaintiffs. The money helps them pursue their lawsuit. In case of unfavorable verdict, you are not obliged to pay back the money. To be approved of lawsuit financing, you should submit requirements. Your lawyer can help you find a financial institution. Read the article before you make the decision.

Settlement advance is a financial assistance program given to an individual who has a pending lawsuit or compensation case against a certain company. In most cases, the need for a settlement cash advance comes from the necessity to financing the lawsuit.

In other instances, part of the funding goes to expenses not related to the lawsuit. This could be to fund everyday expenses. Expenses could mount up if you are not working as a result of injuries related to the lawsuit in progress.

The lawsuit funding is given a basis on the merit of the case, and the assumed settlement amount. The interest rates of settlement advance, charged by financial institutions, are quite high because the only way for them to recover their settlement cash advance is when the case receives a favorable verdict.

In case, the lawsuit ended in a no settlement award, the money lent in the lawsuit funding is not recovered. It is not considered a loan. Settlement cash advance is a non-recourse financial program. This means that you are not obliged to pay back the money you have borrowed should you lost your case. It also does not have a negative effect on your credit score, since it is not reported to the credit agencies.

If you did win the case, the amount to be repaid to the financial or lending institution will not exceed the total amount that you borrowed. This is true even when the loan period is very long.

However, there are many lawsuit lending companies that have promised low interest rates to entice clients. According to a survey, for every respectable lending institute, there are three that will charge plaintiffs random penalties to help them offset their low interest program. In such cases, many plaintiffs ended up losing the entire amount of their settlement money to the lending company.

There are factors to consider in qualifying for settlement funding. The lending company takes into consideration the length of time that the case will receive its verdict. If the expected verdict is too soon, the company will not lend you money.

A litigation finance company makes money by accrued interest on their investment in your settlement case. The amount owed to the lending company increases the longer your case is settled. Other factors that are important are pertinent documents on your lawsuit case, and a signed contract by you and your attorney representing your case.

If your case is about personal injury, the litigation finance company uses a personal injury settlement calculator to calculate the amount you will receive. Basically, the settlement funding is based on the amount of structured settlement prediction.

Based on the amount you receive, you have a choice to pay in flat fee or monthly fees to the litigation finance company. Before you decide if a settlement advance is the right program for you, it is best to look at the worst possible outcome. This way you can be prepare emotional if this outcome becomes a reality.

At , you can get a settlement advance. We can look at your case to see if we can advance you cash. There are no monthly payments. Use a cash settlement to keep up with your payments or lawyers fees. Come to Settlement advance and discover how we can help you protect your case.

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