A lawsuit loan is just like any other loan: a financial instrument allowing you to obtain resources for a specific use and repay them over time, with an interest rate.
Many credit institutions (from banks and insurance companies to private lending companies and others) can provide you the necessary funds to file a lawsuit. Please visit the resources above for further information.
Many citizens need to file a lawsuit in order to preserve their rights against abuse by someone else. A lawsuit loan will certainly ease those persons' financial burden. Lawsuit loans can be a good solution in complicate and costly cases, when the lawyer's honoraria's and the other expenses involved can be overwhelming. This is why in America and around the world, lawsuit loan providers are growing. Every individual is eligible to obtain a lawsuit loan provided he or she can generate income to repay both capital and interest.
In developed countries, banking and other credit institutions provide lawsuit loan financial products. These are not only useful when a Class Action is proposed, as many believe, but also for individual lawsuits. A plaintiff can request a lawsuit loan from his or her bank or savings bank, and the loan will depend on the customer's credit status, but also on the chances for success determined by the bank's lawyers. There are also independent financers who have specialized in assessing the chances for a lawsuit or class action to succeed, and who provide lawsuit loans after checking a particular lawsuit's likeliness to succeed. In these cases, the lawsuit loan repayment may be shorter termed and also a part of the customer's obtained compensation may be requested by the lawsuit loan lender.
Along this website devoted to the lawsuit loan industry, we shall be posting relevant articles and information. We welcome any lawsuit loan article from our readers, and we hope to see you back soon.
Lawsuit loans are particularly adequate for class action. A class action is defined as “a lawsuit brought by a representative member on behalf of a large group of persons or members of the group”. The most typical cases are lawsuits against large corporations or groups thereof. In recent times a lot of class actions have been started against different kinds of producers, including mesothelioma lawsuit cases, Zyprexa lawsuit, Vioxx lawsuits and other class actions against the pharmaceutical industry. Secondarily, class action initiatives against tobacco producers have also been highlighted.
A class action happens when different persons combine their lawsuits because the facts and the defendant are so similar. This is designed to save Court time and to allow one judge to hear all the cases at the same time and to make one decision binding on all parties. Class action lawsuits would typically occur when all the victims would sue the same company together in a class action suit. Lawsuit loan providers usually prefer to lend money for this kind of collective lawsuits.
A class action lawsuit loan is similar to an individual lawsuit loan, but it may be easier to obtain, as the financial lender can easily assess the chances for the case to push through. The class action lawsuit loan lenders may repay the lawsuit loan together or individually, and that will depend on each case. The lawsuit loan industry is not too developed yet, but especially in the United States the big number of class actions is making it easier for lenders to prepare bulk financial products to assist massive lawsuits by lending money to victims who can't afford the lawsuit costs, in the hope that compensation will fully repay the lawsuit loans and generate a big profit to the lenders.
A lawsuit loan needs to be considered in depth before applying. You may be subject to an excessive financial burden for many years to come. Is your litigation worth borrowing a lawsuit loan? This is the first question you really need to answer yourself before thinking of a lawsuit loan.
Also, a lawsuit loan will reveal your bank or other lender that you are immersed in a juridical problem. Be sure to make your case in a way that they won't be scared about lending money to you.
Choose a proper credit institution and make sure you can generate enough regular income to pay for capital and interest of your lawsuit loan.
Lawsuit loan providers
If you are looking for a lawsuit loan, you might find this shortlist of financial and credit institutions useful. They are all reputable entities providing general and lawsuit loan options that you might wish to consider.
If you have funds offshore (or plan to do so), or if your litigation is cross-border, then you need an international tax planning expert who can help you to find the proper lawsuit loan and the best performance for your money abroad. We suggest you these top level consultants:
Have you ever considered whether hiring a lawyer should be for free, as some people advocate? No lawsuit loan would be necessary as the State would pay... Justice for all is a noble ideal, but government interventionism is certainly not the way to achieve it. If you're considering to apply for a lawsuit loan, you may be angry at the system for not granting you a free lawyer, so please read Spanish libertarian thinker Juan Pina's article on this very matter (in English).
The main thesis sustained by libertarians against government lawsuit loans or lawsuit vouchers is that people should be responsible for their own lives, and therefore the insurance industry can cover most of these situations. A civil responsibility and overall litigation insurance is an excellent product to have and an alternative to a lawsuit loan. You will pay a small amount of money every year and when you need to endeavor into a costly litigation, your insurer will pay instead of you needing to apply for a lawsuit loan (or else complain at the government so they pay for your lawsuit out of taxpayer money).
A plaintiff is the person who initiates a case in Court. That person may also be referred to as the Claimant, Petitioner or Applicant. The person who is being sued is generally called the Defendant or Respondent. A lawsuit loan will normally be applied for by the plaintiff when he or she is ready to sue a company or another individual. The plaintiff, in order to be granted the necessary lawsuit loan, will need to prove his or her ability to repay the lawsuit loan irrespective of the case's result in court. The defendant may also apply for a lawsuit loan in order to respond to charges assisted by a prestigious lawyer he or she couldn't afford without the lawsuit loan money.
In both cases, the bank or other financial institution (or a private lender) may have a more flexible approach towards the lawsuit loan requested if they see real chances to obtain a part of the compensation ruled by court. Some institutions will provide a smaller interest rate but a percentage of the compensation obtained will be given to them if the lawsuit loan borrower wins.
Like any other loan, a lawsuit loan must be repaid, and that includes interest. The lawsuit loan lender makes profit on each lawsuit loan given, by applying an interest rate which can be fixed or variable. In the latter case, the lawsuit loan repayment will be calculated on a trusted indicator agreed in the lawsuit loan contract.
Lawsuit loan interest rates are defined as the rate of interest charged for the use of money, usually expressed as an annual rate. The lawsuit loan rate is derived by dividing the amount of interest by the amount of principal borrowed. For example, if a bank charged $50 a year to borrow $1,000, the lawsuit loan interest rate would be 5%. Lawsuit loan interest rates are quoted on the repayment documents and stated in the lawsuit loan contract. Rates in general tend to rise with inflation and in response to the Federal Reserve raising key short-term rates. A rise in your lawsuit loan interest rates has a negative effect on your ability to repay the interest and may lead you to renegotiate your lawsuit loan contract.
The less pleasant aspect of any loan is that it needs to be repaid, and this of course includes lawsuit loans. A lawsuit loan, nevertheless, may be repaid in a less painful way than most other loans. Remember that your lawsuit loan was not given to you in order to buy consumer goods, but in order to obtain money, in fact. Therefore with the money obtained at court you may be able to fully repay the lawsuit loan. In many occasions this is not just an option but an obligation you subscribe on your lawsuit loan contract.
Until the moment comes for the court verdict to be issued, you may need to pay a monthly fee on your lawsuit loan, so check your repayment capability beforehand. In other cases (especially if your lawsuit loan was given to you by a charitable or consumers organization) you will only repay interest until the court rules, and then you must repay the full lawsuit loan capital plus, maybe, a percentage of the compensation money obtained.