Finance Litigation
What is Lawsuit Loan definition?
I've heard a lot about this one. I know that when you are involved in lawsuit you can receive cash advance or lawsuit loan. But is this legal? What is the exact definition of lawsuit loan? Does this mean my lawyers who will arrange the loan for me? Anybody can share a tips about this please.
Public Comments
- Lawsuit loan is also known as pre-settlement lawsuit loans, or litigation funding. It is a financing process where plaintiffs are awarded with sufficient money to hold onto the conclusion of the case where plaintiffs receive their financial settlement. It's a non recourse loan, so you don't need to pay it back if you don't win the case. Lawsuit loan is popular because many plaintiffs who are injured are unable to work thus having a financial crisis. The defendants usually sniff this and offer less settlement to the plaintiffs.
