Understanding Lawsuit Loans Better
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If you have a pending lawsuit, which could take time for settlement and are direly in need of money to take care of your regular financial commitments like house rent, children’s school expenses, or debt repayment, then a lawsuit loan will help you tide over this situation.
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There are many financial institutions in the United States which offer this type of loans to people waiting for settlement of their lawsuits and you could choose one of them through references from family or friends, or by searching on the Internet. This option would be much better than taking a loan from a commercial bank, which will only aggravate your existing financial woes.
The two conditions required to file an application for a lawsuit loan are:
- The borrower should actually be midway in getting the financial settlement from the pending lawsuit.
- The borrower should be represented by an attorney.
Most financial institutions take in to account the amount pending settlement and normally give a fraction of that as loan to you, which means that you are availing in advance a percentage of the amount that you are expecting from the law suit settlement.
It is pertinent to note that the fees charged is determined on a case-to-case basis, but usually the rate is between 3 percent and 7 percent. However, before you apply for a lawsuit loan, it best to do a thorough research on the time taken to get approval for the loan and what the repayment terms are at different financial institutions. It would be in your interest to discuss all the issues clearly with the financial institution so that you do not have to pay for hidden charges when the money is disbursed to you.
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