As a plaintiff, there are some number of things about lawsuit settlement loans which you should be aware of. The plaintiff should know about the facts before deciding whether to apply for a settlement loan or not and the right provider to apply with. The plaintiff can be able to make proper choices after he has done the right research and received enough education about a settlement loan. Legally, settlement loans which are also known as lawsuit loans are not considered to be loans and that is something that you should know. They are referred to as non-recourse debts or loans which means that they are secured loans using a collateral.
The collateral that is used in settlement loans later becomes your future settlement. While paying settlement loans, it is not done using monthly payments but rather you repay the loan amount as well as interest. You will also have to pay fees in full after you have won the lawsuit and after receiving your settlement. An agreement is usually made between the lawyer of the plaintiff and the provider so that the money is sent directly to him. Among the many benefits of considering the lawsuit settlement loan, included is that you will only pay it if you win the case. You will not be required to repay the loan if you lose the case.
However, if you win the case, you will have to repay the whole settlement plus the interest and fees. If you might be having a bad credit, you should keep yourself from worrying. One thing that you need to know is that your credit history, the income and employment amount are not relevant do not affect anything about approval of the loan. The plaintiff is only offered the loan after his case has been factored. In the event you have a strong and solid case, it is likely that you will be approved for a lawsuit loan. You should however understand that some cases are not funded.
There is no limitation on what you should do with the money you get as loan and that is something that you should know. Some of the uses of that money can be payment of medical bills, mortgage, buying a new house, going for holiday or investment in stock markets. You can use the money you spend as loan on anything that you prefer. As compared to the traditional loans, lawsuit settlement loans do not require you to give details about however you are planning to do with the money.