Were you the victim of a car accident? Wrongful termination? Discrimination? Or medical malpractice? The truth is, filing a lawsuit will take months (perhaps years) before you go to trial. In the meantime, you need to pay off the increasing medical and legal bills. However, without the available funds to do so, you keep spiraling more into debt. Not having a revenue source and needing to take out a home equity loan or borrow from your 401(k) are telltale signs you need a cash advancement fast. But should you apply for a lawsuit cash advance? Below are 10 questions that will help you determine if this financial option is right for you.
1. Are You Unable to Pay for Your Day-to-Day Living Expenses?
Daily living expenses are your basic necessities: food, water, toiletries, healthcare… Without them, your quality of life would drop. If you are finding it hard to scrape cash together to pay for these expenses while your case is pending, you need to evaluate your financial options.
2. Are You Unable to Pay for Your Mortgage or Rent and Are Facing Eviction?
Your mortgage payment (or rent) is overdue. Because you do not have a stable stream of revenue coming in, you are not able to make the payments. If this pattern continues, eviction is likely and the house will be foreclosed. However, your attorney states you have a good chance of receiving a settlement. You are “putting all your eggs in one basket,” depending on the money from the settlement to pay for your house.
Not having a solid financial plan, consistent income source, and depending on the settlement money (if you are awarded it) are indicators that you are in a poor (and unfair) financial situation. It is important that you are proactive and immediately look at all of your financial options.
3. Is Securing a Traditional Bank Loan Near Impossible?
Because of a poor credit history and not being able to provide proof of stable employment, traditional banking institutions keep denying you a loan. You have gone to several banks and the answer is always the same: rejected.
You are frustrated because you need funds fast, even if that means making monthly installments. With traditional bank loans potentially off the table, it is necessary for you to see what other financial options are available to you so you can access the funds you need to pay for piling expenses.
4. Do You Have a Poor Credit History?
As mentioned, a poor credit history will make attaining a traditional bank loan a challenge. Most likely, you also will not be able to be instantly approved for a new credit card. (If so, the interest rates will be high.) While you wish you could work on improving your credit score (i.e. not using credit cards, paying bills on time, pay off debt…), you are in survival mode, needing to secure funds fast while your case is pending.
5. Do You Want to Reach a Verdict As Soon As Possible So You Can Use Whatever Settlement Money You Receive to Pay Off Debt?
Relying on the settlement money you plan on receiving will only make you want to rush a verdict in order to get the available funds to pay off accumulating debt. In doing so, you may agree to a deal you otherwise wouldn’t have and not receive the settlement you deserve. If you find yourself in this situation, a lawsuit cash advance may be a serious consideration.
A lawsuit cash advance will give you the time you need to negotiate a better deal and get a much fairer verdict and settlement that you deserve. At the same time, it would allow you to patch the funding gap, paying daily, medical, and legal expenses.
6. Is the Case a Class Action Lawsuit?
Even if you are awarded a settlement, it may take longer (versus if you were the only plaintiff) to receive your settlement money. This extra time may put you at your financial breaking point, unable to go longer without having funds to pay off piling stacks of bills, legal fees, and medical expenses. Getting the funds you need is critical.
7. Is an Appeal Likely?
Even though the verdict was in your favor, the disgruntled defendant is pushing to appeal. After months of negotiating, you want to receive your settlement money. However, settlement finalization may have to wait if the case is taken up with a higher court. This means the funding gap continues to grow wider, especially with no available funding being able to patch it up. Seeking financial help is paramount, especially if the appeal drags on.
8. Do You Need Fast Cash?
With the household bills piling up and your child’s college tuition due soon, you need available funds immediately. Without them, you risk financial ruin—potential foreclosure (as mentioned) as a possibility, not to mention taking your child out of college or having him or her apply for a college loan. If you find yourself weighting these types of options, it is clear you need a quick financial solution.
9. Do You Need to Borrow Against the Equity in Your House?
Pulling from your house is a last-ditch effort in bridging the financial gap. The risk is, you could default on the home equity loan when the draw period is up. Also, you risk lowering your credit score, acquiring more debt, and declaring bankruptcy. Even though home equity loans usually have low interest rates and tend to have a longer time length to pay it off, you are playing with fire. If this is the last financial options you have, we recommend to consider a lawsuit cash advance to spare you the enormous financial risk.
10. Do You Need to Borrow from Your 401(k) Account?
Borrowing from your 401(k) is a clear indicator that the pay gap has become (too) wide. Similar to borrowing against the equity in your house, pulling from your 401(k) is a risky move. If you do not pay it back in a short amount of time, you risk severely hurting your retirement plan to the extent that you may have to work longer to “pay back” the borrowed funds. If you are at this point, a lawsuit cash advance may be something to look into so that your 401(k) account is left intact.
Final Thoughts: Lawsuit Cash Advance?
Depending on your case and financial situation, a lawsuit cash advance may be the right move for you. If you find yourself trying to patch up the payment gap by taking out a loan on your home and borrowing from your 401(k), a lawsuit cash advance may be the right choice, especially when facing hard times such as eviction, house foreclosure, and possibly even homelessness.
Other situations—like going through the appeal process, dealing with a difficult defendant, and being a part of a class action suit—are indicators that the funding gap is widening and you need fast cash; evaluating your financial options is needed in order to not risk financial disaster. Make sure to research legal funding companies thoroughly if you go through with this choice.
What has been your experience with a lawsuit cash advance? How did you close the pay gap, cutting down on your medical and legal expenses while your case was still pending? Leave a comment below!
- If you are the victim of a car accident, wrongful termination, discrimination, medical malpractice, or other case with an expected settlement, you may be eligible for a lawsuit cash advance
- This may be good to have if you are unemployed, are facing eviction and foreclosure, cannot secure a traditional bank loan, and need to borrow equity against your house and 401(k)
- Not being able to pay for daily living expenses is a clear indication that you need to evaluate your financial options while your case is pending
- Dealing with potential eviction, foreclosure, and homelessness because of a widening funding gap reveals the need for available cash fast; determining what options you have is paramount
- You have gotten rejected by several banking institutions because of a poor credit history and not being able to show proof of employment; exploring other options is recommended
- Wanting to reach a verdict fast so you can receive the settlement money to pay off accumulated debt may lead you to saying yes to an agreement you otherwise would not
- In this sense, a lawsuit cash advance may be a good option, as it buys you the time you need to negotiate a better settlement
- An appeal and class action lawsuit are signs that the settlement finalization process will be longer; you may need to secure more funds to pay off medical and legal bills
- Needing fast cash is a telltale sign you need to re-thing your financial options
- Overall, a lawsuit cash advance depends on your individual case and financial situation
- Research legal funding companies thoroughly if you decide on this option
Contact Legal-Bay for more information about a lawsuit cash advance.