Pre-settlement Loan

Written by Michael O'Brien
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A pre-settlement cash advance is a good idea for people who have a valid legal case, but lack the funds to pursue it. Only seek this type of financing if you have no other place to turn for money. Also, these funds cannot be obtained superfluously. They are intended for people with valid legal complaints and cases that have a good chance.

A Pre-settlement Cash Advance is Non-traditional

A pre-settlement cash advance is similar to a bond in that you only repay if you win. The legal funding company is essentially betting that you will win your case and they will regroup their cash advnace. If you do not win, you will not be required to repay the cash advance. Legal funding is not a traditional cash advance. If you lose your case, it is simply a wash for the funding company.

Many factors are considered before a legal cash advance is awarded. First and foremost is the validity of the case. It must be determined that the would-be plaintiff is truly not at fault and is authentically entitled to a settlement. The lawyer retained must also have a strong history of winning such cases.

Must Be a New Case

People who are already involved in a settlement, but have yet to receive their funds often wonder if they are able to receive this type of cash advance. No, they are not. If you have already had your day in court and are awaiting a settlement check, you are not eligible for a pre-settlement cash advance. They are given only in cases where no settlement has yet been reached.

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