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Getting a Loan Pre-Settlement

When you're involved in a lawsuit, you may at some point need a pre settlement loan. These loans give you a much-needed infusion of cash at just the right time. They can be expensive, but since you don't have to pay them back unless you win your lawsuit, they may also be exactly the right solution for your lawsuit funding needs.

Loans for funding your lawsuit are distributed by a number of finance companies you can find online or through your attorney. They don't call them loans due to legal issues. Instead, they're generally referred to as cash advances. But they're treated about the same way loans are. You will pay a fee for the privilege of using their money, either a flat fee based on the merits of your suit and the amount of money you are advanced, or a percentage charged monthly on the amount of your loan. And if you lose your lawsuit, you don't have to repay the advance.

Things To Remember about Pre Settlement Loans

Pre settlement loans are not legal in all states. In Ohio, a court of law recently determined that these cash advances are too much like betting on the outcome of a court case, and therefore they've made them illegal. But it's worth looking into. A cash infusion at the right time in your lawsuit can make the difference between winning your case and having to drop it altogether.

You should educate yourself on how pre settlement loans work. If your lawsuit results in a structured settlement, where you receive money over a period of time in small amounts, you may be able to use the same cash advance company to get your entire structured settlement at once, less fees. This can keep you from losing your settlement money in case the company you sued goes bankrupt, or it can help you pay pressing outstanding debt or pay for improvements to your home or business that have become necessary.

You should keep in mind that cash advance companies are in the business of making money, not necessarily helping you. For this reason, you should look out for your own interests. If a cash advances sounds like a bad deal, it probably is. But if you absolutely have to have the cash to go on with your lawsuit, and you've exhausted every other avenue of capital, these companies are a resource that's available to you.

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