By Sam Renolds
A settlement loan is money that you borrow while you are waiting for the verdict on a lawsuit. This is money that will tide you over through the expenses you have incurred. These loans are for people who have an immediate need of financial assistance and can't wait until the lawsuit is settled.
A great advantage of this type of loan is that it isn't really a loan. It is a cash advance based on the collateral you have in the amount of your lawsuit. The company will only allow you to borrow up to 10 percent of the award-able amount.
Another advantage to a settlement loan is that if you lose the case, you don't have to pay back the original amount you borrowed. Be sure to read all of the fine print concerning the charges you will incur and that will have to be paid whether you win the case or not. The company will talk with your lawyer, read all of the court-related documents and do hours of research on your case before they agree to give you the loan.
Should you or should you not ask for a settlement loan? It is quite common for the plaintiff in the case to be without any type of income, especially if he was injured. Mortgages, car payments, credit cards and utility bills still come due and must be paid.
A loan will keep you from having to settle outside of court, and take less than what you would be awarded through the court. However, if you have a way to make ends meet while you are waiting, it might not be worth the fees and interests you will have to pay on the loan. Discuss your situation with your attorney and follow his advice.
Article Source: http://EzineArticles.com/?expert=Sam_Renolds
ไม่มีความคิดเห็น:
แสดงความคิดเห็น