A Plaintiff’s Guide to Lawsuit Loans

Overview

Every funding company tries to streamline its process to make it quick for the customer. But sometimes it doesn’t feel that way; look no further than the DMV for proof. The legal loan industry also tries to keep the process short and sweet, but it can seem like you’re being grilled under an interrogator’s lamp. Rest assured that every question asked is designed to make the most of your time. This article explains the questions you will be asked and why.

“Do you have an attorney?”

This is simple: if you answer “no,” the funder won’t fund you. While people can try to represent themselves in lawsuits, funding companies won’t put money toward a case unless there is an attorney. This protects them in the long run.

“What state do you live in?”

Some funding companies will ask you for your entire address, while others ask only for your state. (Note: You will need to provide an address if you are approved—that information goes into the contract.) This is because different states have different rules when it comes to legal loans. Some companies can’t fund in certain states or have different structures in other states. Check our states page to see if we can provide funding in your state.

Uplift Legal Funding provides funding in most states. Most of our funding goes to residents of:

• California (our home state)
• Florida
• New York
• Texas

“How old are you?”

Most companies will ask for your date of birth. This also helps eliminate cases they cannot consider. Most funders cannot fund plaintiffs who are younger than 18 because there are rules governing where a minor’s settlement money can go (hint: it’s not to pay back funding companies). Most won’t fund a derivative claim, either. If the person in the accident is a minor, even if you are their guardian and might receive money from the case, most funders will not consider funding your case.

You’ll see a pattern here. Every early question is designed to filter out cases they cannot consider, so you don’t spend a few days waiting for an answer on a case that has zero chance of being funded. Here are some other questions.

“What case type do you have?”

Obviously, this is important for reviewing your file. There are other reasons, though. Different case types have different expectations. Some may be quicker to underwrite than others. Some case types can cost more to fund. Others may not be considered at all. Some funders specialize in certain types of advances, like car accident lawsuit loans, but they will not touch others. Find out early on if the company considers your case type.

“Have you taken money from any other funders?”

If you have, it’s not necessarily a deal-killer. But don’t lie. If you took money elsewhere, the funder needs to know it. When you take funding from a legal funding company, they place a lien on your lawsuit. That means the loan gets paid back out of your settlement when your case resolves. Some funding companies will buy out prior fundings; others won’t.

Uplift Legal Funding, for instance, considers cases with prior fundings. But definitely disclose if you have taken money. If you lie about it and are caught, do you think a second funder will trust you to pay them back?

“Have you ever had any other accidents?”

Every accident is unfortunate, and it would be great if every victim received financial justice. But a person in their first accident who has arm surgery is different from a person who’s been in six others. Insurance companies could blame prior accidents for any injuries sustained. If you have had prior accidents, again, it’s not a death sentence for funding, but it’s important the funder knows this to speed up underwriting.

‘What is your Social Security number?’

This is usually asked very late in the process, though some companies may ask for it up front. If you are asked this near the end of the process, it’s probably good news. Most funders put your Social Security number into the funding contract. So, if they’re asking you for it, it probably means they were able to get you funding!