However, in case a claimant, in a personal injury case, is unable to afford a “no recourse lawsuit funding” due to its high cost, he can consider other forms of loans as well. There are certain inevitable expenses that arise prior to the settlement as well as during the settlement of the lawsuit.
In order to be able to meet these expenses, following are the various options available for the plaintiff:
• Obtaining a home equity loan or a mortgage.
• To get a secured or an unsecured personal loan.
• Borrowing funds from family and friends
• To simply max out credit cards
Do not expect your lawyer to lend you money to meet the expenses. There are concerns about creating a conflict of interest between a lawyer and a client. It is due to these concerns that your lawyer can only advance the costs of litigation but not lend money to a client in any case.
Your lawyer can, however, refer you to a good and a reputable lender who will be able to offer you a loan to help you pay expenses during the settlement of a lawsuit. He can also refer you to a reputable lawsuit financing company.
In case you have no other source of capital and are in dire financial straits, you are left with no choice but to obtain lawsuit financing irrespective of its high cost. A lawsuit loan is the last resort to finance the litigation and you should opt for it.
Whatever may be the case with you, it is strongly suggested that you should consult your attorney before arriving at a final decision. To be on a safer side, it is better to involve your attorney in the process of finding a lawsuit funding company and in having your contract with that company reviewed before signing it.