How To Get A Lawsuit Loan

Lawsuit Loans and Personal Injury

If you find yourself facing an unexpected financial crisis stemming from a personal injury lawsuit, a wrongful conviction claim, or a discrimination case, you may not be aware of lawsuit loans.

This form of financing can give you the cash you need to cover medical bills, the cost of medications and rehabilitation, as well as routine expenses. After all, if you have been involved in an accident, you are likely to need time off work, and your income could take a hit.

This guide outlines what to expect from lawsuit funding so you can find out how to get a lawsuit loan. You can also determine whether this form of funding is right for you.

Is a Lawsuit Loan Good for You?

Car accidents can lead to severe economic and physical damage. While you should eventually get the compensation you deserve, many claims take months or even years to resolve.

In the meantime, you’re faced with medical bills and other unexpected expenses, as well as your usual living expenses, and you may also need time off work.

Lawsuit loans are one solution if you don’t have savings or access to traditional avenues of lending.

The non-recourse nature of settlement funding gives you access to cash quickly with no risk. If you win your case, the lender receives a pre-agreed portion of the settlement. If you lose your case, you repay nothing.

Because it is a cash advance, there are no stipulations on how you use the funds from a lawsuit loan. Most plaintiffs use the money for any or all of the following:

• Daily living expenses
• Legal fees
• Medical bills
• Prescription medications
• Car payments
• Rent payments

The primary drawback of lawsuit loans is the cost, which is largely due to the non-recourse nature of settlement funding. Lenders typically charge monthly interest rates of 3% to 4%. Because this interest is usually compounded monthly, it can spiral into an annual interest rate of 42% to 60% or more.

Given the often-protracted nature of personal injury claims, these costs can mount. You should consider this carefully before committing to a lawsuit loan.

Because this non-recourse funding is a cash advance rather than a loan, the lawsuit loan marketplace is not highly regulated, so you should proceed with caution.

How Do Lawsuit Loans Work?

The way lawsuit loans work is straightforward. A lawsuit lender will review your case. No credit check or income proof is required. If the lender feels your case is strong, they will advance you a portion of your anticipated settlement. If you lose your case, you repay nothing.

Additionally, if you settle for less than expected, your repayment obligation will be proportionately lowered.

While interest charges can pile up if the case drags on, you will not have to repay more than you win in the settlement, minus your attorney’s fees.

You can get lawsuit funding for all types of car and traffic-related lawsuits. You should also qualify for settlement funding if you were injured due to another driver’s negligence.

To qualify for a lawsuit loan, you must be over 18 and have retained an attorney on a contingency basis. You must also have a valid claim against either an insurance company or a self-insured entity.

The value of a settlement for a traffic accident is directly linked to the extent of your damages.

If the defendant has adequate insurance coverage, you should qualify for more legal funding if you have severe injuries.

Five Steps to Getting a Lawsuit Loan

If you feel a lawsuit loan is the right choice for you and your circumstances, the process of obtaining settlement funding is straightforward.

Step 1: Get in Touch with a Lawsuit Loan Company

To kickstart the process, you should contact a suitable legal funding company.

Most lawsuit loan companies make it easy for you to get in touch, either online or via a toll-free phone call.

Expect to provide the following information:

• Your attorney’s contact details
• The facts of your case

This is the extent of the initial dealings you will have with the funding company, as they will contact your attorney next.

Step 2: The Funding Company Contacts Your Lawyer

The funding company contacts your attorney to learn more than just the basics of your case.

If you are looking to get funds promptly, you will need your attorney to respond quickly to all requests from the funding company.

The underwriters at the funding company will then evaluate the strength of your case and the value of the expected settlement before making an initial cash advance offer.

Step 3: Your Lawyer Receives the Agreement

Your lawyer will receive the offer agreement from the funding company, so you do not need to do anything yourself at this point beyond arranging a conference with your attorney to review the agreement.

Step 4: You Review and Sign the Agreement with Your Lawyer

Calculating the value of a claim is not clear-cut. Many variables come into play, including the scope of your injuries as well as any economic losses sustained as a result of the accident. The value of these variables will be calculated after reviewing your medical history, records, and treatments, and consulting with your physician.

The other deciding factor is the validity of your claim. Is there sufficient evidence to show the defendant was negligent? The more evidence there is, the greater the value placed on your claim.

Step 5: Get Your Cash Advance

Consult with your attorney to establish that the agreement is fair.

Sign and return the agreement if you want to proceed with a lawsuit loan. Funds are typically issued in as little as one to a few days.