Litigation Loan – A Potential Solution For Anyone Waiting For A Settlement

By Author: Larry Herscu
Total Articles: 6
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For people waiting for their personal injury settlement, an available option to tide you over your financial stress is to opt for a litigation loan. Such loans help ensure that you have the funds to take care of expenses until the settlement is awarded. You will also be helped to withstand the pressure of accepting an early settlement made by the defendants.

A representative scenario: When Michael left the office for home in Toronto that fateful day, he was delighted. He planned to go on a vacation that very night with his family. He had to do some last minute packing, so he wanted to get home early. But fate had a different plan. Just 5 minutes from home, his car was hit by a speeding SUV. Michael suffered grave chest and head injuries which resulted in him being confined to home for several months. He was not in a position to attend to his business, which brought his earnings to a virtual halt. Though he had sued for damages, he was not sure about how long the case would take. He was in a severe financial crunch. Thankfully, someone advised him about the possibility of obtaining a personal injury litigation loan.

A ...
... litigation loan is a quick, non-recourse advance given to a plaintiff against a positive assessment of their case. A company providing litigation loans would usually discuss the case with the plaintiff’s lawyer. If they conclude that the case is likely to get a favorable settlement or judgment from court, the company would provide the advance. In the event no settlement is reached and the case is lost, the company won’t require the loan to be paid back.

It is common for people waiting for their personal injury settlement to face financial problems. When income stops coming in (but not expenses), such problems understandably occur. Meager savings are often not sufficient to help over an extended period of time. The list of possible expenses is long – medical, lawyer’s fees, tuition fees for kids, mortgage payments, and other day-to-day living expenses. It is a very difficult time for anyone to quietly wait for a settlement under such circumstances.

One thing that can help you over the challenges is immediate funds. If you are out of job, getting a bank loan may not be possible. Even if you get a loan from a traditional source, you have to begin repaying the loan and pay interest right away. They won’t wait for the settlement.

A viable option in such situation is to get a non-recourse litigation loan. You will then have the money to take care of expenses until you settle or the court issues a judgment in your favour. It also provides you the cushion to withstand the pressure of the defendants for an early settlement that is usually a fraction of the settlement you have been expecting.

When looking for personal injury litigation loan firms Toronto, you may find several companies. Consider working with a company that offers you better terms and is easy to deal with. The loan disbursement process of these companies is quick, so you won’t need to wait long for your money.

You can usually choose to take the litigation loan as a lump sum or as a defined amount every month. You need not even arrange for the repayment when the settlement is received; your lawyer and the finance company will make all the necessary arrangements.

The author of this article is associated with Easy Legal Finance Inc. that provides litigation loans. They enable plaintiffs to meet their immediate financial needs and thus help increase their chances of a successful settlement.