Do you need cash now? Are you waiting for your lawsuit to settle? This can be frustrating when you desperately need money to pay your bills. There’s good news! People with a strong case likely to lead to a settlement can obtain Florida lawsuit settlement loans, contingent on the case’s value.
If your case qualifies for funding, your out-of-pocket costs and bills can be covered while you wait for the lawsuit to settle. Many Florida lawsuit loan clients use the money to pay for medical bills, mortgage, rent, car payments, and much more.
Who Is Eligible For A Florida Lawsuit Loan?
Florida lawsuit settlement loans are an option for those with a valid personal injury or workplace injury claim. You need to reside in Florida and have an ongoing claim or lawsuit that will likely result in compensation. Your job or income does not influence your eligibility for the loan. The only thing that matters is that your case will likely lead to a favorable verdict or settlement.
How Does a Florida Lawsuit Loan Work?
If approved, the loan is non-recourse. It means you don’t have to repay the loan if you lose your case. This makes the loan a considerable risk for the lender, so the underwriters must carefully review and analyze the case. The underwriters will work with your attorney to understand the case, liability, and the likely compensation.
Loan terms, including repayment and interest rate, will be negotiated between the lender and your attorney. The interest rate affects how much you pay over time before the case resolves. Processing and origination fees could also apply, reducing the amount you receive at the end of the case.
If the loan is approved and both sides agree to terms, the lender will advance the loan to your bank account. How fast the loan processes depends on many factors, but it can be as fast as 24 hours.
The loan is paid back to the lender once the case is resolved with a settlement or verdict. Then, you receive the rest of the funds.
Risks of Florida Lawsuit Loans
You should always consider the risks when taking out any type of loan, including a lawsuit loan. The loan is non-recourse, meaning that you do not have to pay it back from your income or personal assets. However, when the case concludes, you must pay a substantial part of your potential settlement or award to the lender. Whether this is worth it or not largely hinges on your financial position and lawsuit timeline. You’d also be required to pay monthly interest on the loan.
That said, the lawsuit lender is taking on considerable risk. The lender is left on the hook if the case is not resolved favorably. You don’t have to pay the loan back. That’s why the lender will closely analyze your case and discuss its details with your attorney.
Remember, you owe the lender nothing if you do not win your case! So, for many plaintiffs, a lawsuit loan is worth the risks.
