If you need money while waiting for a personal injury case to settle, you may qualify for a lawsuit loan. Lawsuit loans are an advance against a future award or settlement amount. It can take months, or even years, for a case to be resolved. Meanwhile, you have a pile of bills that haven’t been paid, and you don’t know when you will receive your settlement check. Lawsuit loans allow plaintiffs to gain access to funding immediately while they are waiting for their case to be processed.
One question a lot of plaintiffs ask is how these types of loans are repaid. This blog will answer this question, as well as what happens after a settlement award is received.
Lawsuit loans, also known as pre-settlement loans, are an advance against a future settlement or award. The loans are used by people who have the potential to receive money, but because they are in the middle of a lawsuit, they need it now to keep the case going and pay their bills. While many types of lawsuits qualify for lawsuit loans, they are more commonly used in personal injury cases because injured plaintiffs need the funds to cover lost income and medical bills.
How to Obtain a Lawsuit Loan
Plaintiffs may qualify for a lawsuit loan on several types of pending legal claims. When applying for a lawsuit loan, it is essential for you to provide the necessary documentation and information the finance company needs to process your application.
This checklist will walk you through what you will need during the application process.
Liability: When determining whether a plaintiff qualifies for a lawsuit loan, liability is the most critical factor a finance company takes into consideration. Any documentation or facts that prove that the defendant was at fault in the accident will increase your chances of qualifying for a lawsuit loan.
Information Accuracy: Ensure the contact information and name of the law firm and attorney representing you are spelled correctly. The finance company needs your attorneys’ information because they rely on a law firm’s strength to determine the likelihood of a potential settlement, as well as the amount. This information is critical to obtaining a lawsuit loan, which is why it must be correct.
Personal Contact Information: You must include your e-mail address, your mailing address, and all of the phone numbers at which you can be contacted. You will need to be available whenever the finance company tries to contact you, as they may need to ask you some questions during the underwriting process.
Details of Your Medical Treatment: You will need to provide the finance company with specific information related to your medical treatment. Some of the questions they will ask include whether you went to the Emergency Room and whether or not you have had any additional treatment. If you have all of your medical bills with the exact costs printed on them, this information can also help. Make sure that it’s accurate so that it doesn’t hurt your chances of being approved for a lawsuit loan.
Economic Losses: Were your injuries severe enough to force you to miss work? Any financial implications that you faced should be accurate and readily available.
Lawsuit Loan Benefits
Lawsuit loans offer several benefits to plaintiffs, including the following:
- Lawsuit cash advances are a hassle-free option: Lawsuit loans are based on the circumstances and facts of your case. Lawsuit loans never require a credit check because lawsuit lenders aren’t concerned with a borrower’s credit score.
- Lawsuit cash advances are a cash lifeline: Litigation loans can help you get the money you need to cover your medical bills and other everyday living expenses. It can take a long time for a lawsuit to settle, which can put a financial strain on personal injury victims faced with unexpected financial expenses and are struggling to make ends meet.
- A cash advance can help you get the quality medical care you need: Lawsuit loans can be used to cover surgery and medical treatment costs. Personal injury claimants and accident victims often require extensive medical treatment, consisting of expensive diagnostic testing such as an MRI, surgical intervention, physical therapy, and rehabilitation.
- A lawsuit loan can empower you financially: A lawsuit loan can be a financial empowerment tool for a plaintiff fighting to recover a reasonable and fair settlement amount for the damages and losses they have experienced.
Repaying a Lawsuit Loan
Lawsuit loans are entirely risk-free and are provided on a non-recourse basis, which is beneficial to the plaintiff. A lawsuit loan is a cash advance on your pending settlement – it is not a personal loan. While you are waiting for your case to be settled, you do not owe any monthly payments. The attorney will take the proceeds of your jury verdict, judgment, or settlement to repay the settlement advance. If you lose the case, you will not owe anything, and you will get to keep the funds.
The Legal Funding Group Can Help
You will want to make sure that the lender you are working with is reputable prior to applying for a lawsuit loan or signing any agreements. A good lawsuit loan company will provide you with complete transparency throughout the entire application process, along with personalized service while you are making a difficult financial decision that will impact your future going forward.
The Legal Funding Group offers transparency to our clients from the application phase to the funding process. We will be happy to provide you with more information about our lawsuit loan interest rates and other aspects of the process. If you are waiting for a fair settlement and you need a personal injury cash advance to cover your bills, ask your lawyer if this option is right for you.