All plaintiffs have some essential information concerning lawsuit settlement loans that they need to understand. Such information is necessary for the plaintiff because they are what will let him decide if there is need to ask for a settlement loan and which provider is the best for him. The plaintiff can be able to make proper choices after he has done the right research and received enough education about a settlement loan. Legally, settlement loans which are also known as lawsuit loans are not considered to be loans and that is something that you should know. They are well known as non-recourse loans or debts and that is to mean that you must provide collateral for them to be granted to you.
In matters to do with settlement loans, the collateral that is used ends up being your future settlement. Payment of settlement loans is not done on monthly basis but you are supposed to pay the amount of the loan plus the interest amount. After the lawsuit and your settlement have been handed to you, you will be expected to pay the full fees. The plaintiff’s lawyer and the provider make an agreement that the money is sent to him directly. There are many benefits that you can get from getting a lawsuit settlement loan and one of them is that as the plaintiff, you will only be required to pay the loan after you have won the case. You will not be required to repay the loan if you lose the case.
On the other hand, if you happen to win your lawsuit, you are expected to pay back the whole settlement as well as interest and fees. You should not be worried if you have bad credit. You should be aware that your credit history, income and employment amount are not factored while the loan is being approved. After considering the plaintiff’s case, that is when he is given the loan. You will only be offered the loan if you have a strong and solid case. On the other hand, there are some lawsuits that are never funded.
It is important for you to know that you can spend the amount of money you get as loan on matters of your choice. Some of the uses of that money can be payment of medical bills, mortgage, buying a new house, going for holiday or investment in stock markets. After the loan has been approved you will have no limitations on how you can spend the money. There is a difference between lawsuit settlement loans and traditional loans in that you are not supposed to explain the uses you want to put it into.