When you are dealing with any type of legal matter, it may be in your best interest to hire a skilled and experienced attorney. However, most legal issues wind up being extremely expensive. Depending on what type of issue you are going through, you may be out of work and unable to support yourself, let alone cover the costs of your legal fees.
This may lead you to consider whether you should take out a personal loan to cover these costs. Unfortunately, taking out a personal loan should not be an option, even if your lawyer expects to win your case. The risks are far too high if your attorney loses, and you are expected to cover not only your legal fees but pay back the personal loan as well.
Silver Dollar Financial understands how confused and overwhelmed you must be feeling. For this reason, our loan specialists offer pre-settlement legal funding to those in need. With a lawsuit loan, you can cover your legal fees and any other costs you deem necessary through a cash advance on your anticipated payout.
Important Things to Know About Taking Out a Personal Loan
People dealing with legal issues have many struggles. However, one of the most common is figuring out how they will afford to cover their attorney’s fees. If this sounds like what you are going through, you are not alone.
Taking out a personal loan is one of the most common options people consider when they need to pay their legal fees. However, taking out a personal loan may not always be the best choice. You may not even qualify if you do not have a source of income or good credit.
If you apply for a personal loan and your application is granted, you will need to pay excessive compound interest on top of your initial loan. You will also be expected to start paying back the loan within 30 days of the funds being sent to your bank account. This could be catastrophic if your lawyer does not recover compensation in your case, as you will still need to pay back your personal loan with interest.
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You Typically Will Not Need to Pay Attorney’s Fees Upfront
Depending on what type of legal matter you are going through, you may not need to cover your attorney’s fees upfront or at all unless they win. Many personal injury and civil rights lawyers do not require payment for their services until they recover compensation in your case and can deduct their attorney’s fees from your settlement. However, other types of lawyers, such as family law attorneys, criminal defense lawyers, and corporate law attorneys, may require payment in the form of a retainer before they begin work.
When you work with an attorney on contingency, you will not need to pay attorney’s fees to get started. You will not be expected to put a retainer down to cover the costs of pursuing your case either. Working on contingency means you are not obligated to pay for your lawyer’s services upfront, and you will not be expected to pay attorney’s fees unless your lawyer wins your case.
Then, a portion of your insurance settlement or trial verdict payout will go toward your attorney’s fees. The amount of your settlement that will be deducted from your lawyer’s costs will be outlined clearly in your contingency agreement. This amount can vary widely on a case-by-case basis, but generally, injury victims pay approximately 20%-40% of their award in attorney’s fees.
Alternative Options to Consider
Instead of taking out a personal loan to cover your lawyer’s fees, it may be a better idea to consider alternative options. Some people have turned to home equity loans, borrowed against their retirement savings plans, or obtained a loan from a family member or friend. Each of these options is preferable to predatory personal loans.
However, there may be an alternative option that is more appropriate in your case. Pre-settlement legal funding is an opportunity to avoid the hassles that come with borrowing from friends or family or taking out a loan against your home or 401(k). If you qualify for a lawsuit loan, you can obtain a cash advance on what you are expected to win in your personal injury or civil rights case.
You can then use these funds to cover any necessary living expenses as well as your legal fees. To qualify, you must be at least 18 years old and have an attorney handling your case. We will need to discuss the circumstances of your case with your lawyer to find out how long it may be before you are awarded compensation and how much we can comfortably authorize in pre-settlement legal funding.
How Pre-Settlement Loan Repayment Works
One of the biggest drawbacks of personal loans is the requirement that you pay them back even if your lawyer loses. If you are working with your attorney on contingency, you should not have attorney’s fees if they lose your case. Likewise, if you take out a lawsuit loan and your lawyer does not win, you will not be expected to pay back your legal funding, as our loans are non-recourse.
Contact Silver Dollar Financial Loan Specialists for Help Today
Taking out a personal loan to cover your legal fees may be ill-advised. You will need to start paying back the personal loan within 30 days of receiving the funds. If your lawyer loses, you will still be expected to pay back the loan in full.
However, when you are approved for pre-settlement legal funding with Silver Dollar Financial, you get access to non-recourse loans, which protect you from being taken advantage of by predatory financial institutions. You can use your lawsuit for money to cover your attorney’s fees where necessary and any other expenses that may arise along the way. Then, you will not be expected to pay back your lawsuit loan unless or until your lawyer wins your case.
There is no time to waste when you are struggling financially. Contact Silver Dollar Financial loan specialists to find out whether you qualify. You can apply now, submit our quick contact form, or call us to get started on your application as soon as today.