When it comes to lawsuit loans and litigation funding there are so many different terms and phrases used. This article explains the differences been pre-settlement loans and post-settlement loans. It’s designed to help you figure out which is right for you in your current situation. The below two sections explain about each one and a final summary to summarize the differences and help distinguish which one is right for you.
A pre-settlement loan is a loan given to someone in the process of a lawsuit. This is given before a lawsuit reaches a verdict and both the plaintiff’s and defendant’s attorneys are still trying the case. This is best for people who need access to financial assets while their case is still pending in the courts. As with all settlement loans you are not required to pay back the loan if you lose your case. This loan tends to be harder to get approved for since the case hasn’t reached a verdict yet.
A post-settlement loan is a loan given to someone that is having their lawsuits verdict appealed. It’s common for companies or insurance providers to appeal a lawsuit verdict in attempt to get it over turned or the awarded amount lowered. This is usually easier to get because a guilty verdict was already reached and a monetary award was given. As with a pre-settlement loan you are not required to pay back the loan if the verdict is over turned in a higher court.
As you can see even though both a pre and post settlement loan have their different situations when they loan money they are in fact the same. They only difference is where your lawsuit stands. If you need financial assets to pay for bills or anything else a pre or post settlement loan is perfect for you.