Can I Get More than One Pre-Settlement Loan?

Getting Multiple Pre-Settlement Loans

Pre-settlement funding can be beneficial for accident injury victims pursuing legal action in a variety of personal injury claims, including car accidents, product liability, and medical malpractice.

While you can get more than one pre-settlement cash advance, the total amount of pre-settlement funding you can obtain is typically capped at a fixed percentage of the estimated value of your case, normally between 15% and 20%.

This limit is intended to protect both you and the lending company. Pre-settlement funding is a form of non-recourse financing, meaning you do not repay the cash advance unless you win your case.

How Many Pre-Settlement Loans Can I Get?

If you have been wondering, “How many pre-settlement loans can I get?” you can apply for more than one pre-settlement loan, provided the total remains below 20% of the lawsuit’s anticipated value.

What Is Pre-Settlement Funding?

Pre-settlement funding is often referred to as lawsuit funding, legal funding, or lawsuit loans.

Despite the name, lawsuit loans are not loans at all. The ability to receive funding is purely dependent on your involvement in a personal injury case. If this applies and you are represented by a lawyer, you are likely to be approved for a lawsuit loan.

This non-recourse financial product is a cash advance rather than a loan. Approval is predicated on the strength of your case, the severity of your injuries, and the extent of your losses and damages. Rather than making monthly payments as you would with a bank loan, you repay the cash advance in full if you win your case. If you lose your case, you pay nothing. This is one of the primary reasons for the 20% settlement value limit imposed on pre-settlement funding.

You can use the cash advance for any purpose. Many people who receive pre-settlement funding use the cash for:

• Daily living expenses
• Groceries
• Medical treatment
• Rent or mortgage payments
• Tuition fees

What Are The Criteria For Lawsuit Loan Applications?

If you are a plaintiff with a lawyer representing your claim for compensation, you are likely eligible for a lawsuit loan.

This type of funding can be useful in personal injury cases, employment disputes, labor law disputes, product liability, and medical malpractice lawsuits.

The one inflexible requirement is that you have legal representation. This protects the funding company, as a lawyer is unlikely to take on a weak case. This will work to your advantage anyway. Not only will a lawyer help you achieve a superior settlement, but the contingency nature of legal fees means you pay nothing until you receive your settlement or award.

Why, then, might someone want not just one lawsuit loan, but more than one of these cash advances?

Why Would Anyone Need a Second Lawsuit Loan?

There is no fixed timeline for a trial to conclude, and all lawsuits are different. This means that some cases can drag on for months or even years.

In many cases, people find themselves looking for additional pre-settlement funding. Some of these scenarios include:

• Facing higher-than-expected medical bills.
• Discovering additional accident-related injuries.
• Experiencing difficulty finding work or an inability to work as much due to accident injuries.
• Receiving unexpected bills you cannot pay.
• Waiting on disability approval.

If you are injured in an accident, it can be tough to accurately predict your bills and medical expenses. Situations sometimes change, too. If they do, how can you go about getting an additional lawsuit loan?

How to Take Out a Second Pre-Settlement Loan

Most legal funding companies will fund anywhere from 10% to 20% of an anticipated settlement.

This limit serves to protect lenders, as they are already exposed to risk by the non-recourse nature of this financing. The limit also ensures that you will have enough left from your settlement after all medical liens, legal fees, and pre-settlement funding are paid off.

If you initially borrowed less than this percentage of your expected settlement, your current legal funding company might review your application for an extension of funding. Similarly, if it becomes apparent that you could recover more than initially anticipated, you may be eligible to borrow using revised estimates of your settlement value based on new evidence.

Is It Possible to Obtain an Additional Pre-Settlement Cash Advance From a Different Legal Funding Company?

While it is possible to obtain pre-settlement funding from a different lender, you are not permitted to have active legal funding agreements with more than one lender.

However, having received funding from another company will not keep you from getting an additional loan. If anything, the fact that you have already received a loan signals the strength of your case. Of course, the new funding company will review your case in light of the settlement funding you have already received. However, in many cases, the initial loan is for less than the full funding value of your case. Many plaintiffs get two or more loans because cases can drag on, and expenses can be greater than expected. This is not unusual. There are limits to what you can take in a first advance, and you may need more money if your personal injury case takes years to resolve.

One way to get approval from a second funding company is to refinance your initial settlement loan. Depending on the terms of your existing pre-settlement advance, this can actually be beneficial. Refinancing your existing loan while taking out additional funds could help you secure a lower rate.

How Refinancing Works

Refinancing involves another loan company paying off your initial loan and then lending you money themselves. Each lawsuit funding loan has a payoff amount required to settle the debt before your case resolves or a jury makes an award. You contact a refinancing company, which then obtains the payoff amount from the original lender. They make full payment to that provider. Then, you have an outstanding loan with the new company on new terms. The second company then reviews your case to see if they can provide the extra money you need.

Refinancing can help you in several ways. Once you take a loan from one funding provider, you may be tied to them by contract for the duration of your case. If they reject your application for a second loan, you may be stuck with them and unable to get extra money. However, another provider may look at your case differently and be willing to lend additional money. Having another funding provider refinance and buy out your loan gives you a chance at approval elsewhere, allowing you to secure a second loan.

What Can You Do If a Lending Company Rejects a Request for Additional Funding?

If the total loan amount requested exceeds 20% of the expected value of your settlement, your request for funding is likely to be denied.

If one funding company rejects your application, you may find that another company will offer you a cash advance, but not if the amount exceeds established limits.

What factors determine whether I am approved for additional pre-settlement funding?

The litigation funding company makes a quick decision regarding what could be a large amount of money. They evaluate each case individually in a short period of time. Because we strive for a quick turnaround, we take a risk when approving an additional litigation loan. This is part of the customer service we provide. As a transparent lender, we want you to know exactly how we evaluate your case.

Is your case settled or pre-settlement?

Settled cases pose much less risk for the underwriter. They are providing an advance on an amount that has already been agreed upon, eliminating the chance that you receive nothing. However, most personal injury cases that Uplift funds are pre-settlement. Our experienced underwriting team has no issue determining the likely settlement value of your case, even before any demands or offers have been made.

What is the value of your personal injury case?

The biggest concern for the underwriter is ensuring the litigation funding company can be repaid. They do not want to advance more than the case is worth, as they would be unable to recoup their investment. You are usually limited to a certain percentage of the estimated value of the case. The underwriter will use their assessment of your case’s worth as a potential cap for the amount of your loan on your personal injury case.

What are you expected to net from the lawsuit?

We will review all possible damages in your case. These include your medical bills, lost wages, and pain and suffering damages. Your net recovery is the amount left over after your attorney’s fees and medical bills are paid. Legal funding companies need to ensure there is enough money left to pay back the loan, so they look at the amount that will go into your pocket after all fees are paid. Because of our low rates and simple interest, Uplift Legal Funding is able to provide a higher loan amount as a percentage of the value of your case than many other funding companies. We can advance as much as 25% of the net amount you are expected to receive from your lawsuit.

When is your personal injury case likely to settle?

The closer your case is to settlement, the greater the chance your loan will be approved. You can even receive more than the usual maximum loan amount if your case has already settled and you are waiting for your check. If your case is nearing settlement, there is less risk for the underwriter. Your case may increase in value the closer it gets to a settlement, allowing you to take out a larger loan against your eventual recovery. The further you are from a settlement, the more risk there is for the lender. A litigation funding company looks for cases with clear liability, where all that is left is to negotiate a settlement amount.

How many lawsuit loans have you received so far, and how much do you owe back?

Funding companies do not want to overfund a case. Lawsuit loans are non-recourse, meaning if you do not win your case or recover enough money, the funding company cannot come after you for repayment. Therefore, they are careful about how much they advance. If you have already received funding for a large portion of your expected recovery, a funding company will be more cautious.

What are the interest rates for 2nd+ lawsuit loans?

The interest rate you pay depends on the factors listed above. The lender may offer lower rates when your case is already settled or very close to settlement. One reason to choose Uplift Legal Funding when seeking a second litigation loan is that we offer extremely competitive interest rates. We can offer a rate as low as 15%, which is far lower than some of the leading companies in the industry. Additionally, we charge only simple, non-compounding rates, further saving you money.

While interest rates may vary, one thing remains the same: you will get a guaranteed quote from us often as soon as you call. We are fair and reasonable, unlike many major lawsuit loan companies that charge exorbitant rates and fees. Your application will be evaluated on a case-by-case basis, but you can be confident that we will quickly review your case and provide a reasonable quote.

Repaying a Lawsuit Loan

Lawsuit loans are not like traditional bank loans. Indeed, lawsuit loans are not loans at all. This means you won’t need to worry about payment schedules or late payment penalties, and you won’t pay anything back until you win your case and receive damages.

Once your case settles, your attorney typically receives your court award or settlement. The law firm deposits this check into a trust account until it clears the issuing bank. At this point, legal fees and the amount of any lawsuit loans need to be deducted from the settlement amount. Your attorney will make these deductions and payments and then furnish you with the remainder of the settlement.

How to Get a Lawsuit Loan

Fortunately, obtaining pre-settlement funding is straightforward. You won’t need to worry about your credit score, and you won’t need to prove your income or job status.

The application process is quick and easy, typically paperless, and takes as little as 48 hours.

When you first contact a legal funding company, you need only supply the basic facts of your case and your attorney’s contact information. This is the extent of your involvement.

The funding company will then review your case and contact your law firm. Approval will be based entirely on the strength of your claim and your expected settlement value. You can expect funds in as little as a few days. If you later require further pre-settlement funding, you can apply for a second lawsuit loan, as long as your total borrowing falls within the stipulated limits.