In most law firms, attorneys rarely will suggest their clients to get a “settlement loan”. Getting a lawsuit loan should be the last alternative for a plaintiff and used only unless they have absolutely no financial alternatives . Most laypersons have not heard of pre-settlement loans, but there financial institutions which provide those involved in a claim or action funds against the potential settlement the plaintiff will receive. Actually a good thing about these transactions is that they are non-recourse and in the event you lose your lawsuit, you are not obligated to repay the money you were given . But in likely event you successfully win your case, the cost for the advance can be substantial. Unlike traditional loans, you start paying down the interest on a monthly basis, and then the principal with the agreed time has expired and the loan satisfied. The interest rates Pegasus charges for these loans are similar to credit card cash advance” interest rates, but because the legal system works slowly, and insurance companies often drag the time for you to receive your settlement… The costs can easily balloon. And this sole reason, it is important that you have hired a diligent and competent attorney.
Why would you need to take out a settlement Loan?
Personal injury victims can be seriously injured and are unable to work, and in some cases employers will let you go and on top of the injury, you can find yourself unemployed. But bills continue to arrive. And it’s no secret, the legal system operates very slowly and lawsuits can take a long time to resolve. A typical legal action for a motor vehicle accident takes years and insurance companies know most victims can become desperate after you have exhausted all your savings and other means of borrowing. Lawsuit loans may be the only way to stave off eviction or car repossession, or even put food on the table. If this sounds like your situation that Pegasus can help you by providing you settlement loans.
Your Attorney’s role in your lawsuit
A lawyer works for you to get you the best settlement so as to address your medical treatment for your injuries, property damage, and lost wages. In most cases (at least with law firms we have had experience with, you will only pay if the attorney success wins the case. So your attorney is working for you and in the end they might not receive any compensation. But it is not uncommon that attorneys will have a better idea of the value of the case after a lawsuit loan company’s underwriter evaluates the merits and facts of your legal action. We will need your attorney’s cooperation by them providing on your behalf, certain facts and documents for Pegasus to fully understand your particular case. While you may consider the handling of this loan paperwork to be part of your attorney’s job, they might not feel the same way. As mentioned earlier, your lawyer’s role is to obtain sufficient compensation from the defendant that caused you harm to make you whole from the incident. Your attorney’s effort in assisting you getting a pre-settlement loan is going above and beyond.
.: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