You pay back the advance only if and when you receive a settlement. Best of all, if you lose your case, you keep the advance and owe nothing. In other words, unlike borrowing money through a credit card, you cannot go into debt with this kind of advance. If you win your case, your advance is automatically paid off through a special trust account that is set up through your attorney. If you lose your case, the contract states that you are not required to pay back the advance.
Plaintiffs are free to use the cash advances as they wish.
For many, that may mean paying off credit card debt or simply restocking their bank account after paying taxes. In each issue of this newsletter, we'll profile a court case that is currently in the news. We'll also look closely at the time it takes to resolve these cases and receive a settlement, if there is one. Oftentimes, plaintiffs are surprised at how many years it typically takes for a lawsuit to be settled. Y ou may have heard about this tragic story on TV or in the paper.