Skip to main content

Clients: Family law

Settlement

    Does the loan repayment come from the proceeds of my settlement?

    Yes, you assign the proceeds of your settlement to Novitas by way of a Deed of Assignment when you enter the loan agreement. For example, any lump sum payments or proceeds from a property sale are used to repay the loan before being passed to you.

     

    If I have insurance, do I still have to repay the loan?

    Yes. Insurance is to cover the loss to Novitas if you do not repay the loan. Your debt will be passed to the insurer and they may then recover the outstanding debt from you.

    Can I pay the loan back in instalments?

    No, the loan needs to be settled in a single payment once your case has been settled. 

     

    Can I repay the loan early?

    Yes. There are no penalties for repaying the loan early. We calculate interest daily so the shorter the time you have the loan, the less interest you will pay.

    If you wish to make partial early repayments, the amount would be applied firstly against the fees payable, secondly in payment of interest and thirdly in repayment of instalments. 

     

    What happens if I don’t use all of the loan?

    Any unused loan facility is returned to Novitas and interest is calculated on a pro-rata basis (i.e. applied only to the amount you have used).

     

    Can Novitas ask for repayment at any time?

    Repayment is at the end of your proceedings, but if you breach the loan agreement we may ask for repayment of the loan at any time. This can include, dis-instructing your solicitor without our agreement or failing to follow advice from your solicitor in any material way that impacts whether Novitas will be able to recover the monies loaned to you.