An Examination Of Lawsuit Loans In Comparison To Legal Aid

If you’re a plaintiff who wants to take a deep dive into examining Lawsuit Loans in comparison to legal aid, let DeltaSettlementFunding lay it out for you. When plaintiffs find themselves in a situation where they are unable to financial support themselves throughout their legal proceedings, the first economic support system that generally pops into their heads is Legal Aid. Legal Aid is the government regulated system that provides legal assistance to those in need. And while it has been a tent pole in the justice system of the United States for years, there are other funding options available that may be much more beneficial to plaintiffs in need. With that in mind, we would like to present you with the main differences a plaintiff will experience using Legal Aid as opposed to Lawsuit Loans.

What Is Legal Aid?

Legal Aid is a financial support system that is provided for anyone involved in a criminal case who cannot afford to provide legal services for themselves due to economic constraints. In America it is an inalienable and universal right that a fair trial is guaranteed by the Fifth Amendment of the United States Constitution. In order to ensure that this could be made a reality for all US citizens, the Legal Services Corporation was founded and authorized to oversee the legal aid program at a federal level. The aim of Legal Aid is to provide access to justice for all Americans by:

  • Ensuring all citizens are represented equally in the eyes of the law
  • Ensuring everyone has maintains the right to council
  • Ensuring all Americans have the right to a fair trial

Legal Aid is provided through three different funding & financing models which citizens can utilize if needed.

The Staff Attorney Model

Within the Staff Attorney model, the salaries of solicitors are paid for by the American government on the sole expectation that they provide legal services to citizens who are in financial need or are considered “low-income”. Essentially they are attorneys who are staff members of the United States government.

The Judicare Model

In the Judicare Model, the solicitors do not explicitly handle cases from citizens who are in financial need. Instead, they are private law firms who are employed by the government to handle legal aid cases – just as they would from their clients who pay regular legal-fees.

The Community Clinic Model

The Community Clinic model relates to non-profit legal clinics that serve specific communities throughout the country. These clinics are free to attend, and provide a large range of legal services. Community clinics are also staffed by both lawyers and non-lawyers alike.

The Pros Of Using Legal Aid

One of the main advantages of using legal aid services is that it comes in a variety of different models. If you require an actual solicitor to represent your case, you can either be appointed a government lawyer through the Staff Attorney Model, or you may be appointed representation through a private law firm through the Judicare Model – both at no cost to the client. However, if you only have a legal inquire (and are unsure whether an actual trial is necessary), you can simply go to a Community Clinic without having the financial concern of retaining a lawyer. Legal Aid is also provided as a necessary service through the United States Constitution, and therefore people who receive legal aid are not out-of-pocket.

The Cons Of Using Legal Aid

Although it may seem like an ideal option when you first hear about it, it Legal Aid does have its drawbacks as well. Firstly, the guidelines for who qualifies for legal aid can (and have) change dramatically. Legal Aid is only provided to those who exhibit specific financial constraints – so even though you may not be able to afford litigious representation on your own, you still might not qualify for legal aid. On top of that, the specific services available vary from area to area – so you may not have the same legal services that you could get in a neighboring state.
Legal Aid services are also not immediately delegated – so you must be willing to wait from days to weeks in order to see if you are approved. And if you do receive Legal Aid services, there is no guarantee you’ll be appointed the lawyer you want. Lawyers appointed through legal aid services (either through the Judicare or Staff Attorney Model) are generally overworked and have a very large case load. This fact can have a negative impact on your suit since your solicitor will not be able to give their complete focus to your situation.
The biggest downfall of Legal Aid however, is that Legal Aid cannot be given to all types of Lawsuit. It is a service that is only available for Criminal Trials. Which means if you are involved in any type of Civil Lawsuit, you will not qualify for Legal Aid. Not reserved to civil trials explicitly, if you are involved in any kind of deportation lawsuit you will also be disqualified from legal aid since it is not technically a criminal proceeding.

How Lawsuit Loans Are Different

Lawsuit Loans, on the other hand, are much more flexible litigation financing methods than Legal Aid. Most plaintiffs immediately turn away as soon as they hear the word “loan” for fear that they’ll have to return any money they are given, even if they lose their case; but that’s the great thing about them – Lawsuit Loans are not technically ‘loans’. With a loan, you have to pay it back no matter what. However, with Lawsuit Loans, you are only expected to repay the money you have received if your suit is successful!

The Cons Of Lawsuit Loans

While there are very few disadvantages to applying for a Lawsuit Loan, there are some aspects which could be improved in comparison to Legal Aid. For instance, pre-settlement funding does come with an interest rate attached. So – although you will not be required to pay back your loan if you lose your case – if a successful judgment is found in your favor, you will have to repay your loan with interest. That said, the rates provided by Delta Settlement Funding are considered favorable by litigation lenders. As well, since Lawsuit Loans are technically investments as opposed to loans, plaintiffs may not qualify if their case is deemed unreasonable. However, if a settlement funding company deems your lawsuit unreasonable, chances are Legal Aid will deem your case unreasonable as well.

The Pros Of A Lawsuit Loan

Honestly, what isn’t an advantage of applying for a Lawsuit Loan? First off, the most significant “PRO” of applying for lawsuit loans is that they are essentially No Risk! Unlike other loan options, plaintiffs are only require to repay their lawsuit loan (with reasonable interest) if they win their case! Imagine not having to repay a loan!
As well, plaintiffs usually are able to receive a lawsuit loan in no time at all. The entire timeline for processing a lawsuit loan is incredibly fast. Often times clients will be able to see their money in a little over a day or two. Think of the relief you’ll feel when you’re able to see money transferred into your bank accounts within 24 to 48 hours!
And with a Lawsuit Loan, you’ll be able to choose which lawyer you want to represent you. Which means you can expect your lawyer to focus directly on your case. Not only that, but once you apply for your pre-settlement funding we might never bother you again – because all further financial matters with your pre-settlement funding company are handled directly through your solicitor.
Also, the entire pre-settlement funding industry is entirely self-regulating – meaning it is not a government run organization in any way. Which mean the government will not be able to intervene in your ability to receive a loan through our company. That said, lawsuit loans also require no credit or employment checks!

Make An Informed Choice With Your Litigation Financing Options

While both Legal Aid and Lawsuit Loans are available for plaintiffs to apply for, there are clear advantages to each. And even though Legal Aid is a free legal service that any American can apply for, there are very obvious disadvantages to those needed litigious help – getting appointed an over-worked and under-funded lawyer is only one of them. If you are a plaintiff who would to have the freedom to find the right lawyer to represent your case in a court of law, then you might be better off getting a Lawsuit Loan. At Delta Settlement Funding, we invite you to visit our registration page and Apply For A Lawsuit Loan Today!