Has anyone ever used a litigation loan for divorce?
My solicitor has mentioned it as my divorce is costly and my loan from my family has nearly run out (25k) I could probably borrow a bit more but it’s not going to be enough.
I don’t really want to take out a normal loan as my finances are already stretched without paying £200pm for a loan that will rapidly run out anyway, besides I am a low earner and doubt I could get a loan, nor could I pay it if I lost my job. Once it ran out I would be back to litigation loans anyway!
They have mentioned trying to make ex pay costs, but the divorce is difficult with assets being hidden and I’m pretty sure I see money just going down the drain trying to make him pay. I need to be refused a loan from two high street lenders, or at least get something in writing saying they would not loan to me and I don’t want to ruin my credit by applying for loans I clearly won’t get!
They said that litigation loans have problematic interest, but that it all comes from the settlement and interest is only paid on what is used, plus it will be accepted as a hard debt as opposed to a family loan that probably won’t.
I’d love to just settle this in a normal way, but that’s not going to happen for the foreseeable future.