There is a lot of financial jargon involved when you apply for a loan. To protect yourself, it’s important to make sure you know what you’re getting yourself into. A major factor in what happens if you find you can’t repay a loan is whether your loan is recourse or non-recourse.
According to the Internal Revenue Service (IRS), recourse debt holds the borrower personally liable for the repayment of the debt.
All other debt is considered non-recourse. That includes the pre-settlement legal funding that High Rise Financial offers.
Recourse vs. Non-Recourse Loans
With recourse debt, if you default on the loan, the lender can seize whatever collateral you used to get the loan. In addition, if the value of the collateral does not fully repay the debt you owe, the lender can pursue legal action. That can include forcing you to sell other assets, garnishing your wages, and more. Many car loans are recourse loans.
In contrast, with a non-recourse loan, if you default on the loan, the lender can only take the collateral as payment. They cannot pursue you for further payment. If you have a non-recourse mortgage loan and default, the bank may repossess your house, but will not pursue further legal action if the resale value of the home is less than the loan amount you still owe.
Your obligations and what the lender can do if you do not repay the loan will be spelled out in the fine print. Be sure to read it carefully.
Whether your loan is recourse or non-recourse may depend on the state you live in. There are several states where lenders only issue non-recourse loans. They include:
- North Carolina
- North Dakota
Even if you don’t live in a non-recourse state, you may qualify for a non-recourse loan. Lenders typically only give non-recourse loans to people with good credit and a low debt-to-income ratio.
Pre-Settlement Legal Funding Is Non-Recourse Debt with a Twist
Pre-settlement legal funding may be available to you if you have a pending personal injury lawsuit and you have a lawyer representing you. We understand that money may be tight if you were seriously injured in an accident or as the result of someone’s negligence. If you’ve been out of work, you may be looking for ways to pay your bills. The good news is that High Rise Financial can help.
Use the Apply Now form, or call us at (866) 407-6404. To get started. We’ll ask you for some basic information, and once we have that, our underwriters will determine what sort of cash advance on your settlement we might be able to offer. In some cases, that amount can be up to $250,000.
We will ask you to supply:
- Your name, phone number, and email
- The state you live in
- Your attorney’s name and contact information
- The specifics of your claim/lawsuit
- Details about the extent of your injuries
- Your expected settlement amount
In most cases, you will know if you’ve been approved the same day. Once you and your attorney sign the paperwork, we can generally deposit the funds in your bank account within 24-48 hours.
While technically the money you receive is a loan, the process doesn’t work like a typical loan process. When you apply for pre-settlement legal funding with High Rise Financial, there is no need to:
- Undergo a credit check
- Reveal all your debt
- Provide proof of employment
- Provide previous tax returns
In addition, with our pre-settlement legal funding, you do not have to make monthly payments on your cash advance. High Rise Financial will be paid in full out of your eventual settlement. In the event that you lose your case, you don’t have to pay us. That’s right; we will not go after you for payment, because this is a non-recourse loan. Your settlement is the collateral.
Applying for Pre-Settlement Legal Funding
Your personal injury lawsuit may not settle for months, or even years. The other side may be trying to drag things out, hoping the financial strain will wear you down so that you accept a lowball offer. Stay strong, and don’t give in. Apply now for pre-settlement legal funding from High Rise Financial. It’s a no-risk funding solution that can help you pay your bills, and give you more time to focus on winning your case.
Just fill out the form on our Apply Now page to get started. If you have any questions or want to speak with one of our representatives, call us at (866) 407-6404.