Are Legal Funding Payments Considered to be Loans?
Over the past few years, there has been a drastic increase in the number of personal injury lawsuits being filed each and every day. While an increase in lawsuits, and lawsuit damages might seem like a trouble aspect of society, in truth it actually points towards an evolving society. While in years past, individuals across the country might be far more willing to settle disputes through random arguments, it led to a number of incidents of violence and overall a number of different issues would never be resolved, but rather just lead to more and more issues. And with many individuals suffering a number of heavy financial damages, and experiencing quite a strong financial burden as a result of these cases, having the ability to get compensatory damages from the negligent parties is quite important. However, when it comes to acquiring a personal injury settlement in the state of Texas, New Jersey and many others across the country, one of the biggest issues is the amount of time it can take to actually get access to the funds – whether an individual actually wins their case, or agrees to a financial settlement with the defense. Regardless of which avenue they take, they are still subject to waiting upwards of some months or years, further exacerbating their financial hardships and making it difficult to pay bills, take care of medical costs associated with the accident, and even to find the money needed to fund their actual lawsuit.
In such cases many plaintiffs look towards legal funding or lawsuit loans Dallas experts at Express Funding of America, can provide them with access to money before their settlement arrives. For those individuals who need cash loans now Dallas Express Funding can provide them with the money they need to pay their bills, take care of legal costs, and to even fund certain costs that may be associated with their lawsuit, such as lawyer fees, court costs, hiring expert witnesses and more. in fact, Express Funding works throughout the country, and offers their service to plaintiffs filing lawsuits across many states throughout the US. However, when it comes to the commonly used phrase lawsuit loans Dallas plaintiffs may be a bit confused as to what they are actually receiving in terms of funding. For individuals that need cash loans now Dallas legal funding can be the lifeline they desperately need, but is this legal funding actually a loan or is it not? This is a topic of great debate amongst both those in favor and against legal funding. In this article we will explore this idea, and identify where on the spectrum this funding falls.
The fact of the matter is that for individuals who need cash loans now Dallas experts at Express Funding, and others like them are providing them with the money they need, with the understanding that this money is to be paid back at a later date, with certain associated fees, that both parties will agree to beforehand. In this case, these certainly sound like loans, and in the event that they are in fact lawsuit loans Dallas legal funding companies would be expected to adhere to certain guidelines of repayment. And in addition, certain added fees and payments they might have to make to the legal funding company may not exactly be legal.
Legal Funding is Not a Loan
Its important to understand that first and foremost, a loan is borrowed from a lender or financial institution such as a bank. You are expected to pay back the principle and fees until the loan is fully repaid. The process of approval is often complex. For example, a bank must check your credit history, income sources, and personal assets. A house, car, or other collateral must be attached to the loan, while a bad credit score can affect your eligibility.If the loan is not repaid, you can be fined or sued. It can severely damage your credit and your property may be subject to lien or repossession. However, when it comes to legal funding Hoboken New Jersey experts at Express Funding are providing what is considered to be non-recourse funding, meaning that the plaintiffs are only obligated to repay the funds, in the event that they win their case, or are party to receive funds as part of a settlement. In such an instance, they must repay the funds provided, generally a figure which will not exceed 10-20% of what they assume the settlement amount would be. As a result, this is essentially a form of asset purchasing, or purchasing a small portion of a larger payout, a practice that is perfectly legal – almost as if it were an investment. Interestingly enough, when it comes to legal funding Hoboken companies that offer this service may also provide other forms of funding, such as lottery funding. Meaning that in the event an individual wins a lottery, that is to provide them with a series of payments over the course of the next 10 years for instance. The company may provide the winner with a lump sum payment, in exchange for taking a percentage of all their future payments. This gives the individual access to a lump sum of funds far sooner than they otherwise would, while giving the legal funding company a chance to profit based on the fees for their service. This is why when it comes to legal funding Hoboken or Dallas companies are not providing loans, but rather a service that can otherwise be thought of as a non-recourse investment into their lawsuit. For more information on all there is to know about legal funding, be sure to contact Express Funding today.