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After you file a personal injury lawsuit, you apply for the loan with a lawsuit funding company. The company evaluates your case to determine how much you can expect to get if you win or payday loan poor credit rating a settlement (the vast majority of personal injury cases are settled before trial).
The lender offers you a sum of money immediately. In exchange, you agree to pay the lender that sum of money (the principal) and a funding fee out of the proceeds of your settlement or judgment. Usually you don't have to make any payments before you settle the case or get a judgment. The lender gets paid from the proceeds of the lawsuit judgment or settlement. The Cost of Borrowing Against Your Future Lawsuit Proceeds.
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