Civil lawsuits can be filed for a wide range of reasons, including but not limited to personal injury, neglect, wrongful death, civil rights, sexual harassment, 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. You can also apply for ‘cheap civil servant loans’ (also known as ‘günstige Beamtendarlehen’ in the German language).
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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 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 the plaintiff wins their lawsuit.
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 accepting 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.