4 Tips to Taking Out a Loan for Legal Matters
Nobody would wish to be in a situation where they have to hire an attorney. Unfortunately, most people find themselves in need of legal counsel. When such a time comes, you will need to look for a way to finance your legal fees. In most cases, legal fees add up quickly. Rates depend on your lawyer’s experience and where you live. Lawsuits can run your finances to the ground if you pay out of your pocket. As such, this article explores four tips for taking out a loan for legal matters.
#1. Personal Loans
This loan is ideal when you have a one-time legal expense. If you qualify, your bank will often grant you an individual credit for any legal situation, including legal fees. These loans are best when you already know the amount that you will need to pay. For instance, when paying for consultation fees or a cut-and-dried case. Most banks will lend you the amount and allow you to repay in monthly installments over a specified period.
#2. Contingency Fee
If you think that you will win the case, you can request your lawyer to take your case for a contingency fee. This option is best if you are suing for damages. Instead of paying your legal costs upfront, this approach allows you to pay the lawyer with a percentage of the damages you are paid. However, you cannot use a contingency fee for cases such as divorce, child custody, or criminal cases.
#3. Legal Payment Plan
These plans are ideal for civil, criminal, and immigration matters. You can request your lawyer to come up with a legal payment plan that will help you to cover your legal fees. Most attorneys will have a standard legal strategy, which may or may not include interests or extra fees. Some lawyers may also ask for an upfront amount or small monthly installments. A legal payment plan is an easy way to finance your case compared to other options such as personal loans, especially if you have poor credit. In a legal payment plan, you will not need any qualifications, and you will have more room for negotiation. However, you can lose your legal representation if you fall behind on your payments. Fund Capital America is the best legal funding in California. You do not need any collateral or any creditworthiness to qualify. The firm base it’s funding on the merits of your case.
In today’s digital world, you could consider online fundraising. For this to work, you have to make sure that your case is one that the public can stand behind. Reach out to your social media friends and ask them to raise money for your legal fees. You can also use platforms such as gofundme.com, to raise funds for your case. However, you may have to pay the platform a small percentage of the funds you earn.
Since legal cases can hurt your savings and finances, you can always turn to these financing options if you are caught by surprise.