When you have a personal injury case pending in the court system and need money now, what you may qualify for is known as a non-recourse funding. This is the type of funding provided by Easy Lawsuit Funds.
Many people are not aware of what the difference between recourse vs non-recourse funding is. Some people have never even heard the terms recourse or non-recourse. Most typical loan programs are recourse loans.
What are Recourse Loans
What exactly is the difference between Recourse and Non-Recourse Financing is a question we often hear. Well, it is quite simple really. Recourse financing is what most loans are. They enable the lender to go after you if you default on the loan. A fancy way of saying if you fail to pay the money back, they can come after you. There is less risk involved for the lender, and more for the borrower, since their possessions can be taken away from them. They can also garnish your wages, bring a lawsuit against you, and levy your bank account. When you are waiting for a personal injury settlement offer, this is not the loan type you should get.
Non Recourse Financing
Instead of applying for a recourse loan, you should consider the benefits of non-recourse financing options when looking for lawsuit funding. Non-recourse financing is like a loan that you don’t have to pay back if you lose your case. The lender cannot take anything from you if you don’t win the case. You owe them nothing at that point.
This is why these funding options cost more than recourse loans. The risk is far greater for the lender. If you need money to get you through your personal injury lawsuit, a non-recourse advance can be a big help. If your finances are getting out of hand, and you don’t have a steady income to pay your bills, then maybe you should consider a non-recourse funding loan.
People wait months or years before reaching a settlement offer they can live with in their personal injury cases, and they need money to wait it out during that time. Knowing the difference between recourse Vs Non-Recourse funding helps a person decide which kind of funding would be best for them.
A non-recourse loan helps personal injury victims pay their bills while they are waiting for their settlement to come through.This is pre settlement lawsuit funding. You don’t have to make any payments while your case is pending, and there are no up front out of pocket expenses. If you don’t win your lawsuit, you don’t pay the loan back at all. It’s that simple.
It is important for people who suffered from personal injuries caused by the negligence of another to support themselves and their families while waiting for their case to settle. They often accomplish this simply by applying for a non-recourse financing loan to pay their living expenses and medical bills.
For more information regarding Recourse Vs Non-Recourse Financing, visit: http://en.wikipedia.org/wiki/Nonrecourse_debt