A law suit loan is a special type of funding which is offered by lending institutes to petitioners fighting a case in the court. The basic principle of this type of loan is simple & straightforward. You borrow the money, use it and repay after you win the case. In case, you lose the case, you still use the whole money and do not have to repay. Thus, the borrower is actually in a win-win situation here. Since, he needs to repay only in the event of winning the case, he has got nothing to lose.
The risk, on the other hand, lies with the lender. Therefore, an institute will grant law suit loan only if it feels that your chances of winning the case are really great. If it senses that the probability of your victory is bleak, then it would refrain from granting out such a loan for fear of loss. Remember that it is the lender who will stand to lose in case you lose the case!
Some people may think that like most other loans, a law suit loan too would not be granted if the borrower has a bad credit. However, what you need to understand that it is not like your conventional loan in the true sense. Here, the lender’s chance of recovering his money lies on the strength of your case, and not in your personal financial condition. Even if your credit ratings are very poor, you can easily avail this funding. Most companies do not even find out the credit rating of the borrower, since its role is meaningless & immaterial in this context.
Furthermore, just in case you end up losing the court case and, therefore, are unable to repay the loan, your credit ratings won’t be negatively affected. So, there is nothing to fear on your part. Even in case of non-payment, your existing credit situation shall remain so, without getting negatively influenced.
For all these reasons, it can be safely concluded that such a service is helpful for everyone, irrespective of his credit situation
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