As with any money loan, the primary purpose of a legal fee loan is to provide you with the funds you need to cover legal expenses. Costs for legal services can often be prohibitive, especially when paying the sum upfront. A legal fees loan allows you to spread the cost of the loan over several years – securing the service without the accompanying financial strain.
Access the legal expertise you need without worrying about a hefty bill. Legal fee loans are here to support you during an already overwhelming time.
How legal fee loans work
Legal fee loans may work differently depending on the lender that you choose to borrow from. Some lenders will only require repayment to start once cases have been settled so that they will determine the loan amount based on an expected settlement value.
At Handy Finance, our legal fee loans work the same way as our other types of personal loans. When you apply for a legal fee loan, you will be subject to the same eligibility criteria as any personal loan. This includes submitting documentation that details your current financial situation, such as income statements, bank statements, and credit history.
Our legal fee loans come with a range of flexible options to suit your specific needs. You can choose repayment terms ranging from 1 to 7 years, allowing you to select a plan that fits your financial situation and repayment capacity. Loan amounts can vary depending on your needs and eligibility, ranging between $2,001 and $75,000. This ensures that you can cover all necessary legal expenses, whether they involve hiring lawyers, valuators, or mediators.
What are the types of costs involved in legal proceedings?
Legal costs can accumulate quickly due to the high rates charged by lawyers, who often bill by the hour. In addition to attorney fees, there are numerous additional services that contribute to the overall expenses. According to the Federal Court of Australia, lawyers may charge for:
- Appearing in court
- Travelling to court
- Conducting research
- Reading documents
- Preparing documents
- Copying documents
- Correspondence
- Administration
- Witness expenses
Given these diverse and potentially substantial costs, it might be necessary to take out a personal loan to cover your legal fees. Before doing so, it’s advisable to ask your lawyer or solicitor for an estimate of the total costs you are likely to incur.
What are the pros and cons of personal loans for legal costs?
Taking out a personal loan to cover legal fees can be a strategic decision, but it comes with its own set of advantages and disadvantages.
Pros:
- Quick Access to Funds: Personal loans often provide rapid access to cash, which can be crucial when legal fees arise unexpectedly. Many lenders can approve applications and disburse funds within a few days, allowing you to address urgent legal matters without delay.
- Flexible Options: Shopping around for the most suitable personal loan can help you find one that fits your financial situation and repayment capacity.
- Predictable Repayments: Personal loans often come with fixed interest rates and set repayment schedules, making it easier to budget.
Cons:
- High Interest Rates: Choosing a personal loan with a high interest rate or unfavourable conditions can increase your financial burden.
- Fees and Penalties: Many personal loans include various fees, such as origination fees or penalties for late payments. These additional costs can add up and make the loan more expensive than initially anticipated, impacting your overall budget for legal expenses.
It’s essential to conduct thorough research before taking out any personal loan. Consulting a finance professional can also provide valuable insights and help you make an informed decision about covering your legal costs.
What can I spend my legal fee loan on?
A legal fee loan must be used to cover the cost of legal expenses in part or whole. So, what exactly are those legal expenses?
- Hiring lawyers: Includes paying solicitors or barristers to help resolve your legal matters.
- Hiring valuators: A critical part of most divorce proceedings is hiring independent valuators to provide further information on the value of your property or assets.
- Hiring alternative dispute resolution sources: If you’ve decided to pursue a different resolution route, you can use your legal fee to hire mediators and arbitration experts to resolve your matter.
For more information on what legal loans from Handy Finance cover, call our credit experts.
Benefits of using a legal fee loan
The main benefit of taking out a legal fee loan is that it will help you manage cash flow during legal proceedings. Pursuing legal matters involves significant costs, and hiring lawyers, valuators, or mediators can quickly add up. Having cash available upfront will help you engage the legal support you need without the financial stress of dropping a large sum of money.
At Handy Finance, we specialise in fast and flexible financial loan options. We understand that timely access to cash can make all the difference. Our legal fee loans come with the advantage of no upfront repayments, allowing you to repay over a period of 1 to 7 years. Additionally, compared to credit cards or other high-interest options, our legal fee loans may offer more favourable interest rates for financing your legal expenses. This makes managing your legal costs more affordable and less stressful. Not to mention, if your loan is approved, the funds can be settled within 24 hours.
Eligibility for legal fee loans
In order to be eligible for a legal fee loan from Handy Finance, you need to meet the following criteria:
- You must be 18 years of age or older
- You must be an Australian citizen or permanent resident
- You must be currently employed, which includes self-employment
- You must not have a history of bankruptcy or be party to a court judgement (regarding your finances)
- You must not have any outstanding or unpaid defaults.
Before applying for a legal fee loan
Before sending through your application for a legal fee loan, take a moment to review the different legal loan options available. You should always check the underlying terms of your loan: what the interest rate is, if there are any fees associated with the loan, and if there are any limits or restrictions on how you can use the money.
At Handy Finance, you can apply for a legal fee loan of between $2,001 and $75,000. You can choose to repay over a term of between one and seven years in monthly, fortnightly or weekly instalments. Our legal loans have a $0 early repayment fee – in fact, the only fee you’ll be required to pay is the initial establishment fee. As with all our loans, the interest rates are fixed, meaning your repayment sum will remain the same throughout the loan’s lifetime.
Explore loan options to cover legal fees from Handy Finance
Speak to one of our credit experts today to find out more about our legal fees loan. You can apply for all Handy Finance loans online via our application form. Don’t add financial stress to an already stressful time. Consider a legal fees loan today to help you cover the costs of legal matters.
Approvals are subject to Handy Finance’s credit criteria and responsible lending requirements. Fees, charges, terms and conditions apply. Finance provided to approved applicants by OurMoneyMarket Lending Pty Ltd ABN 64 605 231 669, trading as ‘Handy Finance’ holds Australian Credit Licence number 488228 and is a member of the Australian Financial Complaints Authority (AFCA). The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, we recommend that you consider whether it is appropriate for your circumstances. We recommend you obtain independent advice before acting on any information in this article.
