Despite myths to the contrary lawsuit cash advances usually help “the little guy.” That is, the single moms and hard working people who otherwise not be able to pay their bills and living expenses and still pursue the justice of their lawsuit.
Myth: A Lawsuit Cash Advance is a Loan. collection laws in California
No, an advance is NOT a loan. It’s understandable why many people confuse legal funding with loans. On the surface, legal funding appears to possess the same look as an unsecured loan. In reality, legal funding is very different from traditional loans.
The main difference is that loans always need to be paid back and require a monthly payment. When you get a lawsuit cash advance, you do not need to make monthly payments and the money is only paid back if you settle your case.
In the past, plaintiffs who were not aware of legal funding often turned to expensive credit cards to cover living expense while they waited for the case to be resolved. Not a good idea. Regardless of whether the lawsuit was successful or not, the plaintiff was still required to repay the debt.
Now, with legal funding, a cash-strapped client submits an application to a funder and, if approved, the client receives an advance. After receiving the cash, there are no payments of any kind until the case settles.
An advance is not a loan. Rather, it is non-recourse debt that need not be paid back unless you are successful in your lawsuit. Does that make sense? You only pay back your cash if you win. And you do not make payments on the lawsuit cash advance.
Myth: An Advance Depends On Your Personal Credit History.
No, the underwriting of a lawsuit advance is based on the merits of your lawsuit. Lawsuit cash advances do not take into account your personal credit score or credit history. In contrast, banks do not recognize lawsuits as assets when determining an individual’s qualification for a traditional loan. So, don’t worry about your credit score. Contact a reputable lawsuit advance company, such as Legal Advance Funding and get the cash you need to pay your living expenses.
Brad Shifrin is the owner of Legal Advance Funding, a company that specializes in lawsuit cash advances for people in need. Please contact him for your no-obligation lawsuit cash advance consultation.