Lawsuit pre-settlement finance Are Not Payday Loans
If you have been examining lawsuit loans, you may have already run into some common myths and misconceptions about litigation financing. Plaintiffs in lawsuits who need money while they wait for their cases to work their way through the legal system often receive incomplete or misleading information about lawsuit loans, or they confuse them with payday loans. This confusion can lead to serious financial problems for the person who is misinformed.
Myth #1: Lawsuit cash advances are a type of payday loan.
Myth #1 debunked: Nothing could be further from the truth. In fact, payday loans and lawsuit cash advances have nothing to do with one another. Payday loans or short-term loans are a high-interest form of financing made against your paycheck. You receive an advance against your next paycheck, and when you get your check, the payday loan company takes out your advance and a hefty interest payment and service fee. The interest rates on these loans can quickly add up, especially if you don’t pay off your entire loan right away. If you are a plaintiff waiting for an accident settlement or for the outcome of a lawsuit, these loans are unlikely to be of much help. You need to have a steady paycheck to qualify for a payday loan, and these loans are only a very temporary solution, meaning that they will not help you much if your case takes months or years to settle.
Lawsuit funding, on the other hand, are not loans at all. They are a non-recourse form of financing, which means they only have to be repaid if and when you win your case or settle out of court. If you get no money from your case, you owe nothing. Not only are lawsuit loans often less expensive than payday loans, they can provide you with enough money to pay for months of living expenses. Applying for this form of financing with Pegasus Legal Funding does not even require credit check or employment verification. All you need is to be a plaintiff in a lawsuit to be considered. If you are awaiting a settlement from a lawsuit, Litigation Funding is far more likely to help you.
Myth #2: Lawsuit pre-settlement financing is hard to get.
Myth #2 debunked: Lawsuit advances are, in fact, among the easier forms of financing to qualify for. Unlike traditional loans, you do not need employment verification and no credit check is made. The quality of your lawsuit is used to determine eligibility. Plus, the application process is very simple. Just call Pegasus Legal Funding at 855-FUND-YOU or apply online at www.MyLawFunds.com. It takes just a few minutes and Pegasus Legal Funding is often able to give pre-approval immediately.
Myth #3: Legal Funding is just a new type of debt and will mean more bills.
Myth #3 debunked: Litigation Funding will not add to your monthly bills because lawsuit loans do not require monthly payments as conventional loans and lines of credit do. You only repay your advance if and when your case is won or settled out of court. If you lose your case or abandon it, you owe Pegasus Legal Funding nothing. If you win your case in court or reach and out-of-court settlement, your attorney will write a check to Pegasus Legal Funding for the amount of the advance plus the accumulated risk premium. Additionally, since they are not really loans, lawsuit loans do not appear on their recipients’ credit reports as conventional loans do, so they do not affect your credit rating.
.:About the author:.
James Sheridan is the Contracts Manager at Pegasus Legal Funding LLC and is responsible for the final stage of the funding approval process. James focus and priority is delivering to PLF’s clients the funds they need as quickly as possible