A lawsuit can take years to settle, especially if it involves your employer. An employment dispute can rob you of your income, which can place pressure on you to settle for less than your lawsuit is worth. You can gain valuable breathing room with an employment law loan.
Also known as legal funding, an employment law loan lets you borrow against your future settlement. That makes it a risk-free way to get the money you need now to fight for the justice you deserve. Find out if this financial instrument is the right option for you.
In This Article
What Is an Employment Law Loan?
Lawsuits are expensive and can drag on for months or even years. Few people have the resources to fight these kinds of cases but often stand to win substantial settlements if they can see the case through. Unfortunately, many plaintiffs are forced to settle early and for less than they could obtain simply because they can’t afford to keep up their legal fight.
An employment law loan, also known as a legal loan or lawsuit funding, allows plaintiffs to draw from their expected settlement. The cash they receive is theirs to spend however they see fit and doesn’t have to be repaid until they win their case. For plaintiffs fighting well-funded insurance companies or their own employers, this money can be just the lifeline they need.
How Does an Employment Law Loan Work?
An employment law loan works similarly to any other loan, with one significant difference: there is no risk to the borrower. That’s because legal funding is considered a form of non-recourse debt by the IRS. What this means is your personal assets can’t be taken as repayment of the loan, which shifts all risk to the legal funding company giving you the money.
With pre-settlement legal funding, your future settlement is used as collateral. This means there are no credit checks necessary for you to obtain an employment law loan. This also means that, should you lose your lawsuit, you won’t owe anything to the legal funding company and can keep whatever money you received from them.
How Do I Qualify for an Employment Law Loan?
If you’re considering an employment law loan as a financing option for your settlement, you’re in luck. There are just a few conditions you’ll need to fulfill in order to obtain legal funding:
- You’ve hired a contingency-based lawyer.
- You’ve filed a lawsuit against your employer.
- Your state allows legal funding for employment cases.
That’s all it takes to qualify for legal funding. Provided that you meet the above qualifications, you can obtain legal funding for your case. However, some states prevent their residents from seeking legal funding for third-party cases, so you’ll want to be sure that your state allows it.
How Much Does an Employment Law Loan Cost?
The cost of an employment law loan will vary depending on the circumstances around your case. The quality of your case is really the only factor that a legal funding company will consider when working with you. The likelihood of whether you will win or lose will impact the amount you can expect to pay for the legal funding.
While prices may vary, a reputable legal funding company won’t charge you more than a low, simple interest rate. It’s unlikely that you’ll receive more than 15 to 20% of your loan as legal funding, which can also cap the amount you’ll pay for it. That will leave you with more of your settlement to take home after you win your case.
Are Employment Law Alternatives to Lawsuit Loans Legal?
Employment law loans are legal but the industry is largely unregulated, which can leave plaintiffs vulnerable to unscrupulous actors if they aren’t careful. That makes it important to research any legal funding company you might seek to work with before signing any agreements. The last thing you want during your lawsuit is a surprise with your legal funding.
Apply for an Employment Law Loan Today
At High Rise Financial, we can provide you with an employment law loan that gives you access to part of your settlement now when you need it most. Legal funding can tip the balance in your case and we can offer you up to $1 million of it within 24 hours of your application’s approval. Apply today to get the cash you need to fight for the justice you deserve.
We make the application process easy to complete for our clients in need of pre-settlement funding. There are no credit checks and we offer generous terms with low, simple interest and no hidden fees. Contact us today and you could receive the legal funding you need in your bank account in as little as a day.