Justice Has No Limits

Lawsuit Loans: What Are the Pros and Cons

On Behalf of | Jan 9, 2019 | Firm News

At Powell & Associates, we understand that when involved in a lawsuit, expenses can be high. With new financial responsibilities from the lawsuit it’s understandable to feel financial stress from the entire situation.

So, what is a lawsuit loan? Is it an option for you? Our team at Powell & Associates want the best solution for you and your family. Read on to see what a lawsuit loan is and what the pros or cons of the loan are and if it’s a good fit for you.

What is a Lawsuit Loan?

Lawsuit loans are often used to relieve immediate financial stress during personal injury lawsuits. They’re viable options to bridge the financial gap so that your lawsuit costs are not immediately paid from your finances but rather from the obtained loan.

Pros of a Lawsuit Loan

Individuals and families that find themselves in a personal injury lawsuit can often find many advantages to a lawsuit loan.

Pros of a Lawsuit Loan:

  • When you receive a lawsuit loan, you only have to repay the loan if your lawsuit prevails. This will depend on your lender, but that is the most common resolution to repayment of your loan.
  • During a lawsuit loan, it’s not uncommon to settle for less than you deserve, but with a lawsuit loan, you’ve removed the financial stress to settle early. You can potentially achieve a better long-term settlement in either out-of-court negotiations or in a trial.
  • Additionally, by having a lawsuit loan, you have financial relief in paying normal financial expenses such as rent, medical bills, or other obligations that compound with your personal injury lawsuit.

Depending upon your situation you may be an excellent candidate for a lawsuit loan. Reach out to the team at Powell & Associates to discuss lawsuit loans and to receive a recommendation of local lenders in Metro Atlanta.

Cons of a Lawsuit Loan

Although the advantages of a lawsuit loan may outweigh the disadvantages, it’s still important to have a well-rounded display of what a lawsuit loan is. Read below to see common disadvantages of a lawsuit loan.

Cons of a Lawsuit Loan:

  • Because there are no regulations on charges for lawsuit loans, the interest rate can greatly vary depending upon the lender you choose. It can also be difficult to find a lender to take your case because of the high-risk nature of the loan.
  • Additionally, many lenders consider the loan high-risk, so they will charge interest on a monthly basis instead of a yearly basis. This allows them to earn more from the interest on your loan on an immediate, but ongoing basis.

Metro Atlanta Personal Injury Attorneys are Here to Help

Contact the personal injury lawyers at Powell & Associates if you have been involved in a personal injury case. Our team has specialists that can help you including finding a lender for your personal injury case.

Reach out to Powell & Associates today at 844-475-2948 or fill out our online form to schedule a free consultation today.