Jul
7
Getting Legal Help With Debt – The Solution To Your Debt Problems
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Peter Lisdorf
If your debts have already become unmanageable and are sources of stress for you and your family, it’s time to seek professionals for options of solutions that will help you clear it.
At first, you’ll want to consult a financial counselor with a good reputation. You’ll be guided on how to manage your household expenses and monthly payments for it. You’ll also be educated on other ways to help ease the pressure of your debts on you, such as taking on debt loans or consolidation loans. A financial counselor can also make other recommendations for other professionals that you can consult about your problem. If your problem is too much for financial management and loans to solve, you might be advised to get legal help with debt.
Taking legal action to solve your problems about it may be the effective solution for your plight. A bankruptcy and debt attorney can advise you on the best course of action that will be most beneficial to you. You can also learn about your choices for debt relief and filing for a declaration of bankruptcy. Remember, it’s best to consult a attorney, rather than asking friends or neighbors about their own experiences, because the information they know might be already out of date. There have been changes made in the bankruptcy laws on 2005, so it’s best to learn about this from a professional first hand.
Be honest with the attorney about your situation to get legal help with debt, because this will help the attorney to assess your case and help you understand the legal options available to you, such as what filing for bankruptcy really entails, and debts relief actions like negotiating with the people or company you owe to work out a new payment agreement. Yes, you can file for bankruptcy by yourself, but it’s better to be represented by a professional, as this will ensure that the right process is being done. This will also be less risky, because a lawyer will help you protect your assets, rights, and personal interests. He will make certain that the results will be in your favor.
You might be worried about attorney’s fees, because you’re already experiencing problems financially. This might convince you to just negotiate with your creditors or file for bankruptcy on your own, but you shouldn’t worry. To get legal help with debt, there are special attorneys who will be willing to represent you at lower fees or even pro bono, which is without compensation. Try finding a lawyer through legal aid services. Or if you have connections who know a good one who offers free consultation, don’t hesitate to ask for a referral. Just make sure that when you hire yourself an attorney, he is experienced in his field.
Getting buried in debts is stressful and affects your credit standing. It’s better not to wait for your financial situation to become unbearable. Don’t hesitate to seek professional counsel, and to get some legal and financial experts.
If your debts have already become unmanageable and are sources of stress for you and your family, it’s time to seek professionals for options of solutions that will help you clear it.
At first, you’ll want to consult a financial counselor with a good reputation. You’ll be guided on how to manage your household expenses and monthly payments for it. You’ll also be educated on other ways to help ease the pressure of your debts on you, such as taking on debt loans or consolidation loans. A financial counselor can also make other recommendations for other professionals that you can consult about your problem. If your problem is too much for financial management and loans to solve, you might be advised to get legal help with debt.
Taking legal action to solve your problems about it may be the effective solution for your plight. A bankruptcy and debt attorney can advise you on the best course of action that will be most beneficial to you. You can also learn about your choices for debt relief and filing for a declaration of bankruptcy. Remember, it’s best to consult a attorney, rather than asking friends or neighbors about their own experiences, because the information they know might be already out of date. There have been changes made in the bankruptcy laws on 2005, so it’s best to learn about this from a professional first hand.
Be honest with the attorney about your situation to get legal help with debt, because this will help the attorney to assess your case and help you understand the legal options available to you, such as what filing for bankruptcy really entails, and debts relief actions like negotiating with the people or company you owe to work out a new payment agreement. Yes, you can file for bankruptcy by yourself, but it’s better to be represented by a professional, as this will ensure that the right process is being done. This will also be less risky, because a lawyer will help you protect your assets, rights, and personal interests. He will make certain that the results will be in your favor.
You might be worried about attorney’s fees, because you’re already experiencing problems financially. This might convince you to just negotiate with your creditors or file for bankruptcy on your own, but you shouldn’t worry. To get legal help with debt, there are special attorneys who will be willing to represent you at lower fees or even pro bono, which is without compensation. Try finding a lawyer through legal aid services. Or if you have connections who know a good one who offers free consultation, don’t hesitate to ask for a referral. Just make sure that when you hire yourself an attorney, he is experienced in his field.
Getting buried in debts is stressful and affects your credit standing. It’s better not to wait for your financial situation to become unbearable. Don’t hesitate to seek professional counsel, and to get some legal and financial experts.
Jun
22
Credit Card Debt Legal Help – Do You Need a Lawyer to Negotiate Credit Card Debt?
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Ally Madison
The advent of the credit cards brought a great revolution in the financial market. It gave a new zeal to the people to use money of the card even in the present scenario its use is increasing day by day. Because of some problems or mismanagement of money sometimes, it becomes difficult for a person to pay the debts on time. When the person finds debt much more than his expectations then he finds himself incapable to pay this and starts looking for an option to gain rebate on the debt. Actually the debt keeps on increasing because the interest on the money keeps on adding on the amount and finally it becomes a huge amount to pay.
There are several ways available to get the debt rebate. One can choose the right alternative as per the specification of the case. Credit card debt legal help can be obtained from an experienced person the finance industry who has the awareness of the facts and figures (terminology) of the finance. He should have knowledge of the laws given by the government to make his advice much stronger from Debt settlement, debt consolidation, filing for bankruptcy and so many. Out of all these available option, the debt settlement has been found much smoother in comparison to other option.
There are so many companies available for credit card debt legal help. These companies conduct a sophisticated meeting with the creditor and make him understand with various strong facts why the debtor is not able to pay the whole amount. The healthy discussion takes place and finally they agree on a common amount to be paid on specified time which is considered as a whole compensation for the debt. Well, it is not mandatory that only a lawyer can do this very well. Even the debtor himself can handle all this since it is not an easy work. It needs good negotiation skills, soft skills, quick responsiveness; good inter personal skills and very good knowledge on the subject matter of the finance industry. This is only the reason, it is always recommended to get this work done by an experienced person rather than handling self.
The advent of the credit cards brought a great revolution in the financial market. It gave a new zeal to the people to use money of the card even in the present scenario its use is increasing day by day. Because of some problems or mismanagement of money sometimes, it becomes difficult for a person to pay the debts on time. When the person finds debt much more than his expectations then he finds himself incapable to pay this and starts looking for an option to gain rebate on the debt. Actually the debt keeps on increasing because the interest on the money keeps on adding on the amount and finally it becomes a huge amount to pay.
There are several ways available to get the debt rebate. One can choose the right alternative as per the specification of the case. Credit card debt legal help can be obtained from an experienced person the finance industry who has the awareness of the facts and figures (terminology) of the finance. He should have knowledge of the laws given by the government to make his advice much stronger from Debt settlement, debt consolidation, filing for bankruptcy and so many. Out of all these available option, the debt settlement has been found much smoother in comparison to other option.
There are so many companies available for credit card debt legal help. These companies conduct a sophisticated meeting with the creditor and make him understand with various strong facts why the debtor is not able to pay the whole amount. The healthy discussion takes place and finally they agree on a common amount to be paid on specified time which is considered as a whole compensation for the debt. Well, it is not mandatory that only a lawyer can do this very well. Even the debtor himself can handle all this since it is not an easy work. It needs good negotiation skills, soft skills, quick responsiveness; good inter personal skills and very good knowledge on the subject matter of the finance industry. This is only the reason, it is always recommended to get this work done by an experienced person rather than handling self.
Dec
6
Understanding a Lawsuit Settlement Loan
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Stephen Sandecki
In the United States lawsuits are a common occurrence. Civil lawsuits can be filed for a wide range of reasons, including but not limited to personal injury, wrongful death, neglect, sexual harassment, civil rights, class action and many more. Many of these lawsuits brought forth to the civil court system can be considered frivolous, meaning they have no merit but to attempt to get money. However, for plaintiffs in civil lawsuits with merit they can find themselves in a situation that can take months if not years to resolve. If your lawsuit is related to injury or wrongful death you might have taken a serious financial blow, whether it’s due to you not being able to work anymore or loss of a family member’s financial support. In a situation like this a plaintiff in a lawsuit does have a solution that might be right for them; a lawsuit pre settlement loan.
The concept of a lawsuit pre settlement loan is quite simple. A company or group of investors buy interest into pending lawsuits by giving cash loans to the plaintiff, in return they receive the cash loan back, plus interest and fees if they plaintiff wins their lawsuit. In theory, this sounds like an easy business practice, but since lawsuit settlement loan providers take a big risk not all lawsuit cases can get funding. The risk I’m referring to is that lawsuit settlement loans are non-recourse debts. Lawsuit settlement loans are considered non-recourse debts because if your lawsuit verdict is in favor of the defendant you are not required to pay back the loan. That’s right, if the plaintiff does not win their lawsuit they are not required to pay back anything to the lawsuit settlement loan provider. So lawsuit settlement loan providers do their best to stay away from frivolous lawsuits.
Now, in light of the risk that a lawsuit settlement loan provider takes it should be noted that the fees and interest rates charged on these types of loans aren’t that low. Some charge anywhere from 2.9% to 8.9% or more, per month on the loaned amount. There is usually a one-time fee based on the amount that is loaned, which can range from $100 to $7000. Most plaintiffs are only able to get a loan at 10% or less of what their lawsuit is actually worth. This helps protects the plaintiff from owing more if they win their lawsuit then what is actually awarded by the judge or jury. In light of understanding how you are charged for a lawsuit settlement loan it should help you decide if it’s right for you.
Getting approved for a lawsuit settlement loan isn’t the same as a traditional loan. Your employment history, income amount and credit history do not play a role in the approval process. Remember, as we learned earlier they base their loans on the actual merit of the lawsuit case. A lawsuit settlement loan provider will review your current case and speak with your attorney prior to approving or denying the loan. It’s a good idea to give your attorney notice you apply for a lawsuit settlement loan to keep the process smooth, and to make sure any agreements with your attorney won’t be broken by accept a lawsuit settlement loan. At the end of the day, it’s up to the plaintiff to decide if a lawsuit settlement loan is right for them, everything should be discussed with family members and a financial advisor if one is available.
In the United States lawsuits are a common occurrence. Civil lawsuits can be filed for a wide range of reasons, including but not limited to personal injury, wrongful death, neglect, sexual harassment, civil rights, class action and many more. Many of these lawsuits brought forth to the civil court system can be considered frivolous, meaning they have no merit but to attempt to get money. However, for plaintiffs in civil lawsuits with merit they can find themselves in a situation that can take months if not years to resolve. If your lawsuit is related to injury or wrongful death you might have taken a serious financial blow, whether it’s due to you not being able to work anymore or loss of a family member’s financial support. In a situation like this a plaintiff in a lawsuit does have a solution that might be right for them; a lawsuit pre settlement loan.
The concept of a lawsuit pre settlement loan is quite simple. A company or group of investors buy interest into pending lawsuits by giving cash loans to the plaintiff, in return they receive the cash loan back, plus interest and fees if they plaintiff wins their lawsuit. In theory, this sounds like an easy business practice, but since lawsuit settlement loan providers take a big risk not all lawsuit cases can get funding. The risk I’m referring to is that lawsuit settlement loans are non-recourse debts. Lawsuit settlement loans are considered non-recourse debts because if your lawsuit verdict is in favor of the defendant you are not required to pay back the loan. That’s right, if the plaintiff does not win their lawsuit they are not required to pay back anything to the lawsuit settlement loan provider. So lawsuit settlement loan providers do their best to stay away from frivolous lawsuits.
Now, in light of the risk that a lawsuit settlement loan provider takes it should be noted that the fees and interest rates charged on these types of loans aren’t that low. Some charge anywhere from 2.9% to 8.9% or more, per month on the loaned amount. There is usually a one-time fee based on the amount that is loaned, which can range from $100 to $7000. Most plaintiffs are only able to get a loan at 10% or less of what their lawsuit is actually worth. This helps protects the plaintiff from owing more if they win their lawsuit then what is actually awarded by the judge or jury. In light of understanding how you are charged for a lawsuit settlement loan it should help you decide if it’s right for you.
Getting approved for a lawsuit settlement loan isn’t the same as a traditional loan. Your employment history, income amount and credit history do not play a role in the approval process. Remember, as we learned earlier they base their loans on the actual merit of the lawsuit case. A lawsuit settlement loan provider will review your current case and speak with your attorney prior to approving or denying the loan. It’s a good idea to give your attorney notice you apply for a lawsuit settlement loan to keep the process smooth, and to make sure any agreements with your attorney won’t be broken by accept a lawsuit settlement loan. At the end of the day, it’s up to the plaintiff to decide if a lawsuit settlement loan is right for them, everything should be discussed with family members and a financial advisor if one is available.
Oct
28
Served a Summons Or Credit Card Debt Lawsuit – Don’t Call the Creditor!
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Jay M Johnson
I receive e-mails every week from people who have had the misfortune of receiving a summons notice on their doorstep or the joy of having a stranger sidle up to them and say, “You’ve been served.”
Not fun. Oftentimes, these same people tell me that the first thing they did was to pick up the phone, call the collection agent or collection attorney in many cases and try to work out a payment plan or settlement agreement. This is WRONG, WRONG, WRONG.
Once you have been served a summons, this means that the collection agency is SUING YOU. You are being sued and the collection agency is now the Plaintiff and you are the Defendant. Any and ALL communication with the Plaintiff should be done via written correspondence only.
It’s too late for “I’ll send you $50 buck a month, I promise.” Way too late. Now is the time to take responsibility for your financial future and face your fears (debt) head on. Even if the collector was to agree to a payment plan, they cannot be trusted. While you are “working it out” they could be in the process of putting a lien on your property and searching for your bank account information in order to seize your assets.
Here’s what you need to do. First of all, DO NOT BE INTIMIDATED. This is difficult, after all I’m sure you feel badly about the debt in the first place and it’s probably been haunting you for years. The sad truth is that many of these debt lawsuits are brought about on out-of-statute debt and the collection agencies and debt attorneys are notorious for re-aging the DOLA or Date of Last Activity on your credit report. It’s in your best interest to dig up any old credit reports and bank statements to prove the the date of the last payment you made on the defaulted account. If that date is past your state’s statute of limitations on open credit card debt, they have the right to try and collect, but they cannot sue you and must drop the lawsuit.
Additionally, very rarely is a debtor sued for the actual amount they owe…penalties, interest, and other assorted fees are generally tacked on to the balance. Make them prove their case!
There are many other defenses that can be raised against one of these collectors. The key is that you need to communicate with them through the court system. They don’t expect you to fight back, over 96% of debt lawsuits end in default judgment. The chances of them backing off and dropping the lawsuit are HUGE if you take the time to properly format what is called a Notice of Appearance, Answer, and Certificate of Service.
It takes some time and research to properly file these documents, but it’s your financial future at stake. A default judgment can not only freeze your bank account or garnish your wages but it will also ruin your credit for a minimum of 7 years. A few states offer basic templates for the forms you will need to file with the court, a simple Google search should offer up some resources. You can purchase Word templates (w/ affirmative defenses for third-party debt collectors) for the “Answer to Complaint” document and more at www.IHaveBeenServed.Info and alternatively there are very helpful people on several internet “debt” message boards who can offer up advice when drafting your own documents.
Additionally, you should fax and mail (certified, return receipt) a Cease & Desist Letter to the creditor informing them that they must communicate you with via written correspondence only and now that they know how to communicate with you they must refrain from contacting any of your neighbors, friends, relatives or employees in an attempt to collect their debt. If they violate your request, you can threaten to sue them for an infraction of the FDCPA (Fair Debt Collection Practices Act) which allows $1,000 for each violation.
Now is the time to action. If you do nothing, the creditors will find your assets and take them. Bottom line. File your Answer and other supporting documents and wait and see. The best that can happen? They won’t want to fight you in court and drop the lawsuit (they rarely have the supporting documentation to back up their claims) or you’ll receive a courtdate and you’ll be given the chance to work out a settlement agreement at that time. Either way you will have avoided a default judgement which is looked upon as poorly as bankruptcy in many cases.
Fight back! You have nothing to lose and everything to gain.
I receive e-mails every week from people who have had the misfortune of receiving a summons notice on their doorstep or the joy of having a stranger sidle up to them and say, “You’ve been served.”
Not fun. Oftentimes, these same people tell me that the first thing they did was to pick up the phone, call the collection agent or collection attorney in many cases and try to work out a payment plan or settlement agreement. This is WRONG, WRONG, WRONG.
Once you have been served a summons, this means that the collection agency is SUING YOU. You are being sued and the collection agency is now the Plaintiff and you are the Defendant. Any and ALL communication with the Plaintiff should be done via written correspondence only.
It’s too late for “I’ll send you $50 buck a month, I promise.” Way too late. Now is the time to take responsibility for your financial future and face your fears (debt) head on. Even if the collector was to agree to a payment plan, they cannot be trusted. While you are “working it out” they could be in the process of putting a lien on your property and searching for your bank account information in order to seize your assets.
Here’s what you need to do. First of all, DO NOT BE INTIMIDATED. This is difficult, after all I’m sure you feel badly about the debt in the first place and it’s probably been haunting you for years. The sad truth is that many of these debt lawsuits are brought about on out-of-statute debt and the collection agencies and debt attorneys are notorious for re-aging the DOLA or Date of Last Activity on your credit report. It’s in your best interest to dig up any old credit reports and bank statements to prove the the date of the last payment you made on the defaulted account. If that date is past your state’s statute of limitations on open credit card debt, they have the right to try and collect, but they cannot sue you and must drop the lawsuit.
Additionally, very rarely is a debtor sued for the actual amount they owe…penalties, interest, and other assorted fees are generally tacked on to the balance. Make them prove their case!
There are many other defenses that can be raised against one of these collectors. The key is that you need to communicate with them through the court system. They don’t expect you to fight back, over 96% of debt lawsuits end in default judgment. The chances of them backing off and dropping the lawsuit are HUGE if you take the time to properly format what is called a Notice of Appearance, Answer, and Certificate of Service.
It takes some time and research to properly file these documents, but it’s your financial future at stake. A default judgment can not only freeze your bank account or garnish your wages but it will also ruin your credit for a minimum of 7 years. A few states offer basic templates for the forms you will need to file with the court, a simple Google search should offer up some resources. You can purchase Word templates (w/ affirmative defenses for third-party debt collectors) for the “Answer to Complaint” document and more at www.IHaveBeenServed.Info and alternatively there are very helpful people on several internet “debt” message boards who can offer up advice when drafting your own documents.
Additionally, you should fax and mail (certified, return receipt) a Cease & Desist Letter to the creditor informing them that they must communicate you with via written correspondence only and now that they know how to communicate with you they must refrain from contacting any of your neighbors, friends, relatives or employees in an attempt to collect their debt. If they violate your request, you can threaten to sue them for an infraction of the FDCPA (Fair Debt Collection Practices Act) which allows $1,000 for each violation.
Now is the time to action. If you do nothing, the creditors will find your assets and take them. Bottom line. File your Answer and other supporting documents and wait and see. The best that can happen? They won’t want to fight you in court and drop the lawsuit (they rarely have the supporting documentation to back up their claims) or you’ll receive a courtdate and you’ll be given the chance to work out a settlement agreement at that time. Either way you will have avoided a default judgement which is looked upon as poorly as bankruptcy in many cases.
Fight back! You have nothing to lose and everything to gain.
Oct
7
Stephen Sandecki
It’s an everyday occurrence, a person or person(s) are injured due to a slip and fall accident. A slip and fall accident can cause greatly bodily harm to a person, this is especially true with older individuals. Sometimes, these slip and fall accidents occur on other peoples or businesses property, and are the result of negligence of that person or business.
It’s all too common to find that person who didn’t salt their stairs after the last snow fall, or that business with wet floors and no caution signs. These types of accidents are due to the negligence of the owner of the property and compensation is required by civil law. However, compensation is usually required to be obtained in a civil lawsuit and can take months if not years to settle. During this period the plaintiff might not be able to work due to injuries from their accident. How does someone in this situation get money to keep their financial life straight? The answer is a lawsuit pre-settlement loan!
A lawsuit pre settlement loan is an option for “every single plaintiff” in a pending lawsuit; and this includes slip and fall injuries. Settlement loans are very simple to understand, it’s when a lawsuit loan provider or investor will loan you a specific amount of money with your pending lawsuit as merit. They receive back their loaned amount, plus interest when your case is settled. However, they “only” are required to pay back the amount of the settlement loan if your case reaches a favorable verdict. If you don’t win your lawsuit, you do not pay back one dollar to the settlement loan provider.
Some of the things a settlement loan provider will do is review your current slip and fall injury case. They will speak with your attorney to find out exactly what happened to cause the accident, what evidence there is to provide what happened and the amount of compensation being sought. Your current income, employment history and credit history play no role in the settlement loan approval process. It is completely based on the probability of your case winning and how much compensation it can receive.
So, if your in the middle of a pending slip and fall injury lawsuit and cannot work a lawsuit pre settlement loan might be right for you. It allows you to seek financial assistance during your lawsuit without having to worry how you’ll pay back the assistance if you lose your pending case. Read below to learn how Legal Settlement Loans assistance plaintiffs in their search for a lawsuit settlement loan.
It’s an everyday occurrence, a person or person(s) are injured due to a slip and fall accident. A slip and fall accident can cause greatly bodily harm to a person, this is especially true with older individuals. Sometimes, these slip and fall accidents occur on other peoples or businesses property, and are the result of negligence of that person or business.
It’s all too common to find that person who didn’t salt their stairs after the last snow fall, or that business with wet floors and no caution signs. These types of accidents are due to the negligence of the owner of the property and compensation is required by civil law. However, compensation is usually required to be obtained in a civil lawsuit and can take months if not years to settle. During this period the plaintiff might not be able to work due to injuries from their accident. How does someone in this situation get money to keep their financial life straight? The answer is a lawsuit pre-settlement loan!
A lawsuit pre settlement loan is an option for “every single plaintiff” in a pending lawsuit; and this includes slip and fall injuries. Settlement loans are very simple to understand, it’s when a lawsuit loan provider or investor will loan you a specific amount of money with your pending lawsuit as merit. They receive back their loaned amount, plus interest when your case is settled. However, they “only” are required to pay back the amount of the settlement loan if your case reaches a favorable verdict. If you don’t win your lawsuit, you do not pay back one dollar to the settlement loan provider.
Some of the things a settlement loan provider will do is review your current slip and fall injury case. They will speak with your attorney to find out exactly what happened to cause the accident, what evidence there is to provide what happened and the amount of compensation being sought. Your current income, employment history and credit history play no role in the settlement loan approval process. It is completely based on the probability of your case winning and how much compensation it can receive.
So, if your in the middle of a pending slip and fall injury lawsuit and cannot work a lawsuit pre settlement loan might be right for you. It allows you to seek financial assistance during your lawsuit without having to worry how you’ll pay back the assistance if you lose your pending case. Read below to learn how Legal Settlement Loans assistance plaintiffs in their search for a lawsuit settlement loan.
Oct
5
Lawsuit Settlement Loans – Questions and Solutions for Plaintiffs in Need of Financial Help
Filed Under Finance | Leave a Comment
Jason Argall
Lawsuit settlement loans are an obscure financial option for most people. Because most of us aren’t involved in lawsuits on a regular basis, we don’t often have to decide if getting a lawsuit settlement loan is the right thing to do or not. The truth is, in my years of helping people make this decision, all of their confusion boils down to a few unanswered questions:
What is a lawsuit settlement loan?
A lawsuit settlement loan is a “non-recourse loan”. “Non-recourse” simply means that the lender doesn’t have the right to collect the money if the case doesn’t settle-for example, if you got a $10,000 lawsuit settlement loan and you lost your case, you wouldn’t owe anything. This is the way a lawsuit settlement loan has to work under Federal law.
How high are the interest rates on lawsuit settlement loans?
The interest rates on these loans range anywhere between 1% to 5% monthly. A fair interest rate for a personal injury lawsuit settlement would be around 2.5% to 3.5%. A fair interest rate for a structured settlement case would be around 1% to 1.5%. For riskier cases, expect interest rates bordering on 5%. Be careful of deceptive math with most companies! Some companies may try to scam you by making you believe a “grid-structure repayment plan” is the way to go. With these repayment plans, you may end up repaying 60% interest if your case settles any time within six months. So, if your lawsuit settlement arrived after two months you would have ended up paying 30% of the loan per month.
What if I lose my case?
Because lawsuit settlement loans are non-recourse loans disbursed based on your pending settlement, if yours never comes because you lost your case, then you wouldn’t owe anything.
What if the settlement is less than the loan amount?
If the settlement is less than the loan amount, you still do not owe more than the settlement. Basically, you will not leave the deal with personal debt from the non-recourse loan.
How do I calculate if a lawsuit settlement loan is the right thing to do?
Let’s look at an example. For simplicity, let’s say you are expecting $100,000 but it was going to take one year for you to get that settlement. Let’s say you have been out of work for a couple months, but you would be able to get back to work soon. The defendant’s insurance company knows you are probably desperate (as most are) and offers you a bogus $10,000. Out of desperation, you are very close to taking their offer. But then you discover a litigation finance company could give you a lawsuit settlement loan of $10,000 at 3% interest per month. This satisfies current financial demands by paying back-rent, catching up on car payments and providing food for your family until you can get back to work. By the end of the year, you get the $100,000 settlement. Of course, about $33,000 goes to the lawyer in attorney fees, and $13,448.89 goes to the litigation finance company (the $10,000 loan plus $3,448.89-3% interest compounded per month for twelve months). By taking the loan instead of the bogus settlement, you would have been able to wait a year for the full amount that was due to you and get $63,551.11 after attorney fees and interest (compare that to the $10,000 bogus offer you could have ended up accepting because you didn’t know your options!).
Should I go through a broker for my lawsuit settlement loan?
By using a lawsuit settlement loan broker, you can get your loan from the right underwriter for your specific case and for your needs and wants. For example, if you have a worker’s comp case in Connecticut, some underwriters may reject you, some may charge you unfair interest rates, but only a few would be happy to take your business and charge you a fair interest rate. The same goes for a personal injury lawsuit in Florida-different companies will make different offers. Some will give you an approval within a couple hours, but by accepting that quick approval you may end up getting a lot less than you could (and probably at a higher interest rate). Other underwriters will take a few days to fully review your case and give you a loan for a lot more (and at a lower rate). After years of experience as lawsuit financing brokers, we know which underwriters will give you the best deal for your specific case and for your needs and wants.
Lawsuit settlement loans are an obscure financial option for most people. Because most of us aren’t involved in lawsuits on a regular basis, we don’t often have to decide if getting a lawsuit settlement loan is the right thing to do or not. The truth is, in my years of helping people make this decision, all of their confusion boils down to a few unanswered questions:
What is a lawsuit settlement loan?
A lawsuit settlement loan is a “non-recourse loan”. “Non-recourse” simply means that the lender doesn’t have the right to collect the money if the case doesn’t settle-for example, if you got a $10,000 lawsuit settlement loan and you lost your case, you wouldn’t owe anything. This is the way a lawsuit settlement loan has to work under Federal law.
How high are the interest rates on lawsuit settlement loans?
The interest rates on these loans range anywhere between 1% to 5% monthly. A fair interest rate for a personal injury lawsuit settlement would be around 2.5% to 3.5%. A fair interest rate for a structured settlement case would be around 1% to 1.5%. For riskier cases, expect interest rates bordering on 5%. Be careful of deceptive math with most companies! Some companies may try to scam you by making you believe a “grid-structure repayment plan” is the way to go. With these repayment plans, you may end up repaying 60% interest if your case settles any time within six months. So, if your lawsuit settlement arrived after two months you would have ended up paying 30% of the loan per month.
What if I lose my case?
Because lawsuit settlement loans are non-recourse loans disbursed based on your pending settlement, if yours never comes because you lost your case, then you wouldn’t owe anything.
What if the settlement is less than the loan amount?
If the settlement is less than the loan amount, you still do not owe more than the settlement. Basically, you will not leave the deal with personal debt from the non-recourse loan.
How do I calculate if a lawsuit settlement loan is the right thing to do?
Let’s look at an example. For simplicity, let’s say you are expecting $100,000 but it was going to take one year for you to get that settlement. Let’s say you have been out of work for a couple months, but you would be able to get back to work soon. The defendant’s insurance company knows you are probably desperate (as most are) and offers you a bogus $10,000. Out of desperation, you are very close to taking their offer. But then you discover a litigation finance company could give you a lawsuit settlement loan of $10,000 at 3% interest per month. This satisfies current financial demands by paying back-rent, catching up on car payments and providing food for your family until you can get back to work. By the end of the year, you get the $100,000 settlement. Of course, about $33,000 goes to the lawyer in attorney fees, and $13,448.89 goes to the litigation finance company (the $10,000 loan plus $3,448.89-3% interest compounded per month for twelve months). By taking the loan instead of the bogus settlement, you would have been able to wait a year for the full amount that was due to you and get $63,551.11 after attorney fees and interest (compare that to the $10,000 bogus offer you could have ended up accepting because you didn’t know your options!).
Should I go through a broker for my lawsuit settlement loan?
By using a lawsuit settlement loan broker, you can get your loan from the right underwriter for your specific case and for your needs and wants. For example, if you have a worker’s comp case in Connecticut, some underwriters may reject you, some may charge you unfair interest rates, but only a few would be happy to take your business and charge you a fair interest rate. The same goes for a personal injury lawsuit in Florida-different companies will make different offers. Some will give you an approval within a couple hours, but by accepting that quick approval you may end up getting a lot less than you could (and probably at a higher interest rate). Other underwriters will take a few days to fully review your case and give you a loan for a lot more (and at a lower rate). After years of experience as lawsuit financing brokers, we know which underwriters will give you the best deal for your specific case and for your needs and wants.
May
9
Carrie Reeder
There are valuable and legal companies who can provide help with your debt. Whether you need some non-biased advice or debt management help, you can find reputable companies to assist you in getting out of debt.
Non-Biased Advice With A Credit Counselor
Certified credit counselors offer non-biased advice to help you get on better financial ground. In a confidential meeting, in person or over the phone, you can discuss with a counselor what your financial goals are.
They will give you several options and discuss the pros and cons of each. For example, they may suggest applying for a home equity loan to pay off high interest credit cards. They will also help you develop a budget.
Lower Rates With Debt Management
Debt management companies lower your unsecured debt rates through negotiations with financing companies. They also handle paying your accounts for a small fee.
There is little to no damage to your credit report by using a debt management company. In as little as a year’s time, you can have a good enough score to qualify with conventional lenders. However, sometimes creditors will put a temporary hold on your credit applications until they see you are making regular payments.
Reduced Principal With Debt Negotiation
A more drastic step is to work with a debt negotiation company to eliminate part of your loan balances. Your debts are partially wiped out, making it easier to repay remaining balances.
This approach will have long term affects on your credit report. It will take at least two years to have a good credit standing. You also will have to pay tax on the eliminated principal.
Scams To Watch Out For
Legal credit management companies are interested in providing you with a service for a reasonable fee. The goal of illegal or unscrupulous companies is to steal your credit information or take your cash.
Be cautious about handing out your social security or credit card number until you have signed a contract. Be wary of companies that charge fees when no service has been rendered. And be especially distrustful of companies that claim they can wipe clean your credit report. Legally no one can do that. Only time and good credit habits will rebuild your credit to good standing.
There are valuable and legal companies who can provide help with your debt. Whether you need some non-biased advice or debt management help, you can find reputable companies to assist you in getting out of debt.
Non-Biased Advice With A Credit Counselor
Certified credit counselors offer non-biased advice to help you get on better financial ground. In a confidential meeting, in person or over the phone, you can discuss with a counselor what your financial goals are.
They will give you several options and discuss the pros and cons of each. For example, they may suggest applying for a home equity loan to pay off high interest credit cards. They will also help you develop a budget.
Lower Rates With Debt Management
Debt management companies lower your unsecured debt rates through negotiations with financing companies. They also handle paying your accounts for a small fee.
There is little to no damage to your credit report by using a debt management company. In as little as a year’s time, you can have a good enough score to qualify with conventional lenders. However, sometimes creditors will put a temporary hold on your credit applications until they see you are making regular payments.
Reduced Principal With Debt Negotiation
A more drastic step is to work with a debt negotiation company to eliminate part of your loan balances. Your debts are partially wiped out, making it easier to repay remaining balances.
This approach will have long term affects on your credit report. It will take at least two years to have a good credit standing. You also will have to pay tax on the eliminated principal.
Scams To Watch Out For
Legal credit management companies are interested in providing you with a service for a reasonable fee. The goal of illegal or unscrupulous companies is to steal your credit information or take your cash.
Be cautious about handing out your social security or credit card number until you have signed a contract. Be wary of companies that charge fees when no service has been rendered. And be especially distrustful of companies that claim they can wipe clean your credit report. Legally no one can do that. Only time and good credit habits will rebuild your credit to good standing.