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A lawsuit loan is a cash advance that can be issued to a plaintiff against pending lawsuit settlements. Pre-settlement cash advances allow a claimant to access a portion of his or her potential legal settlement or judgment to pay for immediate expenses. Personal injury and worker compensation claims can take many years to be resolved, leaving the plaintiff to wait for money that may be desperately needed now.
Lawsuit loan companies review the merits of an applicant's legal claim and determine the chance & size of a financial recovery. Based on this evaluation, they may then offer the claimant a small portion of the total value of their claim in exchange for an assignment of a portion of the claim's potential future rewards. If there is no financial recovery from the claim then the funding company receives nothing.
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