In a traditional sense, the personal injury lawsuit loans are not considered as the normal loans. These loans like those provided by Uplift Legal Funding offer some sort of financial relief to the concerned persons when their cases are pending. According to http://www.nolo.com/ these loans are disbursed as a cash advance against the proceeds of the forthcoming legal settlements. People who advertise or issue these loans call this financial dealing in different names such as lawsuit loans, cash advance for legal settlement, pre-settlement advance, non-recourse personal loan and so on.
Why A Lawsuit Loan?
Persons who are injured may not be in a position to go to work or out of the job, will surely find it difficult to pay their monthly bills such as rent, utility bills, medical expenses, children education. In such situation, these lawsuit loans come as a boon for the suffering individuals. Relatives and friends may not offer consistent help to the sufferers, especially when legal settlements have to happen over a period of time.
On the other hand, banks may not offer immediate help unless some collateral is given, which may take a long processing time. Hence the chances are getting immediate funds are slim and there is no option available for the injured person except to approach the lenders who offer lawsuit loans. Getting these loans is a simple process and there are innumerable firms offer such loans. One can easily find them in many sources such as the Internet, Yellow Pages, Telephone Directory and so on.
The period of lawsuit loans can go for months and even few fears and is determined by the service providers as well as the merits of the lawsuits that are pending in the court of the law. In such cases, a personal injury lawyer can be involved in negotiating with the concerned institutions such as insurance firms. Hence one need be anxious while suffering from injuries as life still goes on. The lesser the period, it benefits the injured as the cost of these lawsuit loans are considered to be highly expensive than the normal personal loans.
Can A Personal Injury Lawyer Offer A Lawsuit Loan?
The straightforward answer to this question is ‘No’. A personal injury or any legal attorney is a professional to handle cases for clients and hence professional ethics prevent them in offering any money to their clients as an advance against the proceeds of the settlement of the clients. Added to this, such a help can result in a conflict of interest when dealing the cases of such clients. Various types of problems can pop up if these lawyers offer clients with such loans. However, your attorney may suggest some the financial firms which offer these loans and in the majority of the cases, these legal experts may not offer any guarantee to such loans as a matter of ethics.
From the viewpoint of the client, it is generally not advisable to take any lawsuit loans from the attorneys who deal his or her case in the court of law. Also, one has to think carefully while availing such lawsuit loans as they carry the higher cost for the suffering personals.