There are instances when a person is injured by the actions or negligence of another person, either emotionally or physically; and the injured party files for a settlement lawsuit against the latter. In case the court decides in favor of the plaintiff, who is the injured party, the defendant will have to pay him cash for settlement. This may come in the form of either lump sum money or structured settlement.
A structured settlement is a form of payment deferment which is given to the plaintiff in installments. This is more preferred by many people because of its various advantages. Because the structured settlement is in the form of smaller amount of cash paid on a certain schedule, taxes are not that significant. As a matter of fact, there are chances that the structured settlement may not be taxed at all.
However, during the trial period, there are times that the plaintiff may fall onto hard financial situations. Because most of them are physically injured, they may not be able to land a permanent job due to medical reasons. Thus, some opt to avail of advance cash settlement loan pending the lawsuit. This type of loan is being offered to the injured parties or plaintiffs of a settlement lawsuit, pending the litigation. This loan will be paid once the court grants the cash settlement to the plaintiff. What’s best about settlement loans is that once the borrower loses his case in the court, they do not have to repay for the loan. The drawback, however, is that settlement loans usually have very high interest rates, thus it is really advisable for the plaintiffs to think it through before finally deciding to avail a loan.
Once the plaintiff has finally decided on this, it is important that he informs his lawyer about the plan to apply for a settlement loan, as the lender will eventually contact his lawyer to get some information regarding the status of the case. Of course, the lenders will only grant the loan to those who have bigger chances of winning the case in the court. Moreover, it is also important to find a lender which gives the best interest rates and lowest fees.
- Loans Pending a Settlement Lawsuit (debt-consolidation-2u.com)
- Small Business Loans Just Got Better (fastswings.blogspot.com)