Why Personal Injury Litigation Loans Are A Viable Option For Litigants

By Author: Larry Herscu
Total Articles: 6
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Do you know when a personal injury will force you out of employment? If that happens, and you face a financial crunch as a result, a viable option for you is to apply for a non-recourse litigation loan. If you achieve a settlement, you pay back the loan. And if you lose, you do not.

You may be seriously injured in an accident, suffering a loss of income for weeks, or worse, even months. However, medical bills and other expenses won’t wait for your income to resume. You may be in for a serious financial problem.

This scenario is something that can happen to anyone, and it is good to be prepared for emergencies. It is always a good idea to try to keep aside funds for such unforeseen circumstances, and carry the necessary medical insurance to cover treatment expenses.

However, many Canadians find it hard to keep a contingency fund, which can put them in a problematic condition. They are not able to save much due to their day-to-day expenses. Even if you have medical insurance, and even if the coverage provides payments right away, there are other expenses to deal with, like utility bills, kids’ tuition ...
... fees, and others.

There is another problem as well. If you start an action, the defendant may try to take advantage of the situation and try to force a small, quick settlement. Under a financial crunch, you may have no option but to accept their proposal.

If you have a good social network, you may be able to borrow from people you know, but that is not an attractive option for everyone. The money you borrow may not be enough to last for the duration of your claim. In addition, people may not be too enthusiastic to lend to someone out of work, and they may not understand the details of your personal injury claim and chances of success. If you approach professional lenders, the first thing they usually ask for is proof of income. If you can not work, it may be very difficult to obtain a loan.

One viable option for you is a litigation loan, from a company supportive of you and the merits of your case. If they feel the legal outcome of the case will be in your favor, they may lend you money that is only repaid upon the conclusion of your claim. The process involves the company talking to your lawyer about your case. If the conclusion is positive, they will usually provide a loan.

It could be in your interest to discuss such a loan with one of the litigation loan providers to get started on your non-recourse financing. You need not return the money if you are not awarded a settlement or lose your claim in court. It really is that simple. If you get paid, you pay, otherwise you do not.

Companies disbursing personal injury litigation loans such as Easy Legal Finance Inc. will deal directly with your lawyer, so you have help with the small amount of paperwork required. It is your lawyer who will be responsible to release the funds to the financing company when the case is resolved. These arrangements can certainly help ease your financial burden.

Easy Legal Finance may release a lump sum amount, or provide you with a certain monthly amount as per your preference. Visit their website for more info about one of the most user friendly personal injury litigation loan firms in Toronto. You may also discuss litigation loans with your lawyer to get some helpful advice about such loans.

The author of this article is associated with Easy Legal Finance Inc. that provides litigation loans. They are available to discuss your case with your personal injury lawyer and if their criteria is met release a cash advance to you.