Additional Resources: Best Family Law Loans for Legal Fees in Australia
Many people dread facing the legal system. The financial strain can often be too much to handle. Various financing solutions exist to help manage expenses. Your choice of lender can have a major impact on your financial outcome. How do you decide which one will suit you? This guide provides the steps to making the right choice for your needs.
Our Financier Evaluation Checklist offers you the essential steps to make an informed decision when selecting the right finance option for a line of credit or legal loan for lawyer fees.
Did you realise this about personal loans
Typically, a personal loan requires a thorough credit check and proof of income. JustFund’s line of credit does not primarily rely on credit scores to approve or reject applications, as their assessment is based on your legal entitlement. JustFund conducts a thorough case-by-case analysis rather than focusing solely on financial metrics.
JustFund is specifically designed by professionals for family law. We provide a flexible line of credit tailored to your circumstances to pay legal bills and third-party fees for Court, barristers, experts, or valuations if needed. Traditional banks and lenders might focus on your income, employment history, and credit score, but will likely ignore your legal entitlement and the bigger picture. JustFund does exactly the opposite.
Your quick guide to finding the right funding solution
What funding amount do you need?
Step one: Estimate your legal expenses and line of credit or loan terms
Step two: Assess your financial capacity and financial situation
Step three: Consider other financing options
What eligibility requirements suit you?
Step one: Determine if your credit history is relevant
Step two: Consider if the line of credit or legal loans is secured or unsecured
Step three: Is your income a factor?
What about interest rates
The JustFund Difference
What funding amount do you need?
One of the basic considerations for legal financing is how much funding you require. The loan application amount influences many other aspects of lending. These include the lender’s requirements, the impact of interest, your financial situation, and the right funding type. Understanding these factors helps determine how much financial support you need.
Step one: Estimate your legal costs
Legal proceedings are expensive. You’ll likely engage legal representation. This incurs family lawyer fees. These legal fees could be a fixed rate or charged hourly. There are also Federal Circuit Court costs, application fees, mediation fees, and potentially personal loan repayments, among other expenses.
Family law matters can continue for months, or even years. Legal expenses and family court cover costs can add up to tens of thousands of dollars over that time.
Step two: Assess your financial capacity
When dealing with traditional lenders, your eligibility is tied to your financial capacity. Borrowing a higher amount from these lenders may require a longer repayment period. This exposes you to a higher amount of compare interest rates. These related expenses will need to fit into your monthly budget. Any changes to your income during this time can affect your ability to meet repayments. Some lenders may be flexible in case of unforeseen financial challenges. However, this is often not the case.
However, there is a better way. Your financial circumstances shouldn’t prevent you from getting the legal assistance you need. Our line of credit is only repaid once you’ve received your court settlements. There’s no lengthy term burdening your monthly expenses. Other lenders consider financial insecurity a negative. For us, helping financially insecure clients is why we created JustFund.
Step three: Consider other financing options
Depending on your needs, there may be other options. For example, you can speak with your lawyer, approach friends or family, or consider legal aid programs for legal loan for lawyer fees. These options present risks. Alternatively, reach out to JustFund’s legal matter specialist team and let them guide you through the process.
Lawyer fee flexibility
How flexible is your legal loan for lawyer fees? They may be able to defer their legal fees until after settlement. Unfortunately, some firms are strict on ongoing fees payments. They may also perceive that you are financially unstable. This could affect a lawyer’s decision to take your case. With access to funding through JustFund, law firms can feel more secure and be paid directly by JustFund.
Family assistance
Family or friends may be able to assist with payments. These are usually informal arrangements. It’s crucial to approach such situations formally through a clearly written agreement. This method is still risky. These arrangements can lead to strained family relationships.
Legal aid or pro bono services
Some law firms take on a certain number of cases pro bono each month. This offers a lifeline to clients. However, places are limited and there may be a long wait. Legal Aid commissions can assist low-income parties. However, there’s no guarantee a party will qualify. Legal Aid programs also don’t cover all legal matters.
What eligibility requirements suit you?
Different lenders have different eligibility criteria when deciding on covering legal costs. You’ll need to determine if you’ll meet these criteria before submitting an application. Here are some examples you may need to meet.
Step one: Determine if your credit history is relevant
Most lenders require a credit history check. Applicants with low credit scores can face rejection or getting locked into a higher interest. Credit checks remain on your report for five years. Making several applications with a bad credit score will just lower your score further. This will dissuade lenders from serving you.
Step Two: Consider whether the loan a secured or unsecured.
Secured loan
A secured loan requires the borrower to offer collateral that the lender can seize if the loan isn’t paid back. A secured legal loan for lawyer fees lessens the lender’s risk. The lender may offer lower interest and allow you to borrow more money.
Unsecured loan
An unsecured loan type is riskier for the lender. There’s no security for them to seize if a borrower fails to repay the legal loan for lawyer fees. Unsecured loans have higher interest to cover the lender’s risk. There may also be a lower threshold for the loan amount you can borrow.
Step three: Is your income a factor?
Most lenders look for a stable income. Evidence of a stable income over the past two years is typically required. They’ll also want to see a solid history of savings and reasonable living expenses. You may have a high income, but if your spending habits seem uncontrolled, that’ll count against you. If you pass these criteria, the lender will be confident you can make repay the loan reliably. Additional costs like interest, associated fees and other charges may factor into your obligations.
What about interest rates for legal fee loans?
You may think it’s an oversight to not consider interest when assessing funding options. That may be true if you’re only considering conventional funding methods such as legal loan for lawyer fees or personal loans. Lenders can use two forms of interest: fixed and variable.
Each option has benefits and drawbacks depending on your circumstances. Fixed interest is predictable. Every repayment will be the same, which makes budgeting easier. However, fixed rates tend to be higher initially. Variable rates usually start lower. This can help clients cover immediate costs. Variable rates can be volatile, though. Payments will rise and fall unpredictably.
Fixed interest rate of legal fees
Predictability is one of the primary benefits of a fixed rate. Your repayments will remain the same regardless of fluctuations in the market. This protects you from rate increases, providing stability and reducing financial stress. You don’t need to worry about comparison rate changes, even if multiple lenders offer varying rates. However, a fixed rate also prevents you from taking advantage of potential rate drops that some lenders might offer during the loan term.
Higher initial rate. Fixed rates typically begin higher than variable rates when financing starts. This allows the lender to account for potential market rate increases that they won’t benefit from. A fixed rate shields you from rising interest. However, this stability results in you paying more in interest if market rates decrease and you miss out on those lower rates.
Variable interest rate of legal fees
Exposure to market conditions. Variable rates change over the course of the legal loan for lawyer fees. You’ll benefit from lower repayments when market rates go down but face higher repayments when market rates rise, adding unpredictability. This can be particularly challenging when managing Family Court expenses. However, borrowers often get a lower initial rate due to the risk they are taking on, which may help with immediate Family Court costs.
Greater flexibility. A variable rate usually provides borrowers a greater range of repayment options. If you want to make extra repayments to settle the legal loan for lawyer fees earlier, you usually can without incurring penalties.
Harder to budget. Since repayments will change over time, it can be more difficult to financially plan long-term loans. You need to consider future market conditions when budgeting for expenses.
The JustFund perspective
Most people looking at financing options will consider interest one of their primary concerns. This is understandable when taking out a loan. The lender will effectively leave you by yourself to determine how best to allocate funds and work out repayments.
But what if there was a lender who could resolve these concerns? JustFund is more than a credit provider. Our team is made up of family law experts who understand the intricacies of the legal process. We consider your case on its merits and will work with you to find the right legal finance solution. You can speak to one of our experts at any time to ensure your funding works as efficiently as possible.
Not a single dollar of repayment is required until settlement. Repayment is sourced from your property entitlement. You won’t face months or even years locked into a loan term that drains you financially like you would with another lender.
A traditional lender’s focus on interest makes them only care about your credit score and financial stability. JustFund’s focus is on securing your rightful entitlement through tailored finance that’s been streamlined for family legal matters.
The JustFund Difference
Anyone experiencing a family law matter understands the difficulties associated with divorce. You’ll often be facing a property settlement and making parenting arrangements. The legal loan for lawyer fees can accrue quickly. You may think that your standard legal loan for lawyer fees are your only option. But that’s not the case. This is where JustFund steps in.
Legal financing vs personal loans
JustFund sets itself apart from traditional personal loan providers by offering a specialised legal fee loan through a line of credit tailored specifically for family legal issues. This innovative solution has been a game-changer for thousands of clients across Australia. Backed by a team of family lawyers and fintech experts, JustFund has pioneered a new funding alternative that streamlines access to legal services, eliminating the need for a traditional legal loans for lawyer fees altogether.
One key difference that JustFund brings with its legal fee loan is the unique approval criteria. Divorce isn’t just emotionally traumatic; it can also be financially overwhelming for many individuals. JustFund’s approach ensures that clients facing financial challenges can still access the representation they need, providing a lifeline during one of life’s most difficult transitions.
My income and credit score aren't the best.
One key difference that JustFund brings with its legal fee loan is the unique approval criteria. Divorce isn’t just emotionally traumatic; it can also be financially overwhelming for many individuals. JustFund’s approach ensures that clients facing financial challenges can still access the legal representation they need, providing a lifeline during one of life’s most difficult transitions.
Case study
A woman has been married for many years. She left her career to become a stay-at-home mum. Then, she faces a divorce.
Time out of the workforce has denied her career progression and work experience. This severely impacts her future earning capacity and her financial independence. She struggles to afford legal assistance to pursue property and parenting legal matters. Traditional lenders refuse to provide financial assistance due to her financial instability.
Our Family Law Fee Loan Financier Evaluation Checklist equips you with the vital steps to confidently assess and choose the most suitable financing option for your legal fees, ensuring you make the best financial decision for your needs.
Is it right that a person is denied help in their greatest time of need?
Consider this review from one of our satisfied customers:
JustFund were the only reason I was able to get to the end of my divorce settlement with the legal cover I needed.
– Kathy C
We’ve heard many similar stories. JustFund recognises that one party is often disproportionately affected by divorce, particularly women. That’s why our funding solutions are tailored specifically to the unique financial stresses of family legal case. We won’t pair you with an ordinary funding assistant. Our team is made up of experienced family lawyers who can assess your case on the basis of your legal finance needs. Your credit history and income stability do not factor in at any point.
Making repayments on legal fee loans
Traditional personal loans require immediate repayments once the legal fee loan is disbursed to your account. JustFund’s approach is different. Since the proceeds from your property settlement cover repayments, clients pay only after the settlement is finalized. Borrowers also have the flexibility to repay the drawn credit early without incurring any early repayment fees, offering a more manageable and stress-free financial solution.
How much can I borrow?
JustFund provides a legal fee loan with a minimum of $5,000 in available credit and no upper limit. There’s no expectation that you must use the full credit amount; you can draw on the funds you need when you need them. Interest is only paid on the portion of the loan you use, ensuring you aren’t burdened with extra interest costs for unused funds. This flexibility helps you manage expenses effectively, which is especially valuable in family legal cases, where costs can be unpredictable.
Hear from our clients
Here are some words from our clients to help you understand how our services can help.
JustFund helped me when I didn’t have the funds to pay for my divorce. Without JustFund, I would not have been able to pay my legal bills. JustFund was considerate, respectful and understanding of my situation. Thank you!
– Melanie M
Connecting with you gave me the financial opportunity to continue down a path that I wasn’t able to quit. Trying to pay for lawyers out of my pay cheque in advance of work getting done was not sustainable. Practically or psychologically. I do not say this lightly… your service was a lifeline.
– Jodi G
You have been such an amazingly supportive and understanding lender. Your helpful, friendly service was so appreciated.
– Leah J
Conclusion
Legal cases can cause suffering for many. But you don’t have to cope with the financial burden alone. Various funding options exist. These sensible steps will help you assess which solution is best for your situation. Innovators like JustFund are shaking up the financing landscape. Find out what our funding can do for you.
Contact JustFund today to discover how we can help.
