Structured Settlement Loan | The Basics
Structured settlement loan is primarily a cash advance that is provided to you during and while a lawsuit is pending. In general, structured settlement loan is 10% less than the amount that you, as a claimant, are actually pursuing in the pending lawsuit. But unlike traditional loans, settlement loans do not require collateral to be approved or awarded. Therefore, employment history, your capability to pay a loan, your existing income, and even a credit check are no longer necessary.
But are structured settlement loans really classified as traditional loans? No, a structured settlement loan is different from a traditional loan. Alongside the fact that structured settlement loans do not require collateral and grueling background checks, this type of loan do not require the lendee to pay anything to the lendor if he had lost the lawsuit. The only requirement and qualification that you need to fulfill in availing a settlement loan is to have a strong case. Lawsuits that are evidently frivolous such as being moot and just forum shopping would have difficulty in being approved for a settlement loan.
While there may be plenty of settlement loan providers, your attorney or counsel does not belong with them. The American Bar Association primarily prohibits a counsel to provide structured settlement loan to his client as to preserve the counsel-client relationship and to prevent a possible conflict of interest. But would it possible for you to owe money from your counsel? Yes, you may actually owe your counsel money during the trial but not, in any way, in the form of a structured settlement loan.
While frivolous cases could and would not qualify to avail of structured settlement loans, majority or most type of lawsuits could. Some of the most common types of lawsuits that could automatically qualify for settlement loans include,
- Personal Injury
- Motor Vehicle and Passenger Injury
- Copyright Litigation
- Civil Rights
- Divorce Funding
Applying for a structured settlement loan, in general, should not cost you. Most established loan providers would not require most of their prospective clients an application and even upfront fee. However, your selected loan provider should consult with your counsel in terms of the merit and status of your case prior to granting your application. It is in this case that you could be charged by your attorney when he would be requested to transact in your behalf with the loan provider.
In terms of the loan amount, most structured settlement loans could provide you anything between 10 t 25 percent of your total projected case value. Values of the loan amount that you could actually avail would vary depending on the amount that you are claiming. While there would be no standard in terms of the loanable amount, it is important that you do your research to actually find the best loan provider.
Repaying for structured settlement loan if you had won the lawsuit is primarily covered by your counsel and the loan provider. While there is no standard procedure on how the loan must be repaid, it is still important for you to consult with your counsel on how the claim could actually be used in terms of repaying the structured settlement loan.
To learn more about structured settlement loan visit http://structuredsettlementloansguide.com
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