question.jpgIn Personal Injury Law

What is a lawsuit cash advance?

Lawsuit cash advances are a sometimes necessary evil to personal injury lawsuits. Lawsuit cash advances allow plaintiffs an advance on money they hope to win in the personal injury case; however, unlike a traditional loan, lawsuit cash advances do not have to be repaid unless you win the case; these cash advances are often used simply to fund the personal injury lawsuit in the first place - it helps your lawyer afford the expense of a lawsuit without worry about a shortage of funds. Naturally, the terms of a lawsuit advances depend on the merits of your case - the more likely you are to win, the more favorable the terms. If the lawsuit is successful, however, you not only have to pay back the cash advance, but generally 10 to 15 percent of the settlement amount.