Filing for a lawsuit can take a toll on one’s emotional and mostly, financial situation. That’s why plaintiffs have an option to apply for a settlement loan while the case is still pending. The nature of this loan has two kinds, the pre-settlement and the post-settlement loan. A person can apply for a pre-settlement loan before a verdict is reached while post-settlement is available right after the verdict is delivered.

Seeking for this kind of financial assistance is very favourable to the plaintiff’s situation. If he loses the case, he is not liable to pay back a dollar of the loan. The collateral of the loan is the settlement that the plaintiff is going to get but if the verdict goes against him then he is off the loan, too. If the lending company still insists that he pays back the loan it is considered violation of the law.

With this kind of funding, a plaintiff can go ahead with the case without having to feel financial pressure pressing on his shoulders. Based on the nature of the two kinds of loans and the risk that a loan company is facing in providing a pre-settlement fund, it is safe to surmise that a post-settlement loan is quicker and easier to process.

A person doesn’t have to have a squeaky clean credit history to get approved. The weight of the case will be the basis for the loan. Your employment status doesn’t hold any relevance either, so anyone with a strong case can apply for a loan. You and your lawyer will now have the means to process the case without financial hindrance.

Different fees are applied for each type of loan. Because of the risks of a pre-settlement funding, the rate is much higher compared to a post-settlement loan. If the plaintiff gets only a small amount of settlement then he is obliged to pay only a portion of the loan.

Another disparity between the two is that post-settlement funding does not affect any special monetary agreement between plaintiff and defendant during the legal procedure. Pre-settlement covers everything that might be the outcome of the litigation. Post-settlement funding also allows the plaintiff to spend the money on things that aren’t case-related.

Pre-settlement funding is not applicable in all states while post-settlement works in all states across the US. While pre-settlement provides financial means during the procedure, post-settlement funding is much more convenient for both the plaintiff and attorney since they’ll have the immediate money to pay for debts and medical bills.

Before applying for any settlement loan, it is prudent to discuss it first with your attorney. Your attorney can provide all the specific details about the case and will give the loan provider a clear perspective of the direction of the case and the rate of chances that the decision will be favourable to you.