If you are awaiting a personal injury settlement, you may require extra cash to cover expenses. Unlike traditional loans, lawsuit funding companies are not focused on your credit history or employment status.
Instead, they are primarily interested in the strength of your case and whether or not your lawyer will work with them. Here are some steps you must take to qualify for a legal advance:
Hire a Lawyer
Severe injuries are life-changing, and they often leave the injured person with expensive medical bills, limited income due to time away from work, and other financial challenges. Personal injury lawsuit loans and pre-settlement funding can help reduce the pressure on an injured plaintiff to accept a low settlement offer from the insurance company.
The first step is to find a personal injury lawyer who understands the ins and outs of legal funding and can recommend a lender that offers lawsuit cash advances. Your lawyer should also agree to cooperate with the application process and be willing to waive attorney-client privilege and work product privilege so that the lawsuit loan company can evaluate your case.
A skilled personal injury lawyer should also understand the importance of adequately documenting the extent of your injuries and how they have impacted your life. This documentation is critical in proving your claim and securing total compensation for your medical costs, lost wages, and emotional distress.
It is important to remember that legal funding is not a traditional loan; it is nonrecourse financing, which means you don’t have to pay the money back if you lose your case. However, if you win your case, the legal funding company will be repaid out of your settlement award. Hiring a qualified attorney to fight for your best interests is essential.
Have an Open Case
Unlike conventional loans repaid with interest, lawsuit funding is repaid directly from your settlement or award. Allows the plaintiff to take the funds as needed without worrying about paying it back if the case is lost. Reduces the risk for the lawsuit funding company, which is why most companies don’t focus on a plaintiff’s credit history. Instead, they focus on the value of your case and how likely you are to win.
To be eligible for a loan for a personal injury lawsuit, you must have an ongoing case in litigation. It is a crucial step in the legal process because your attorney must perform discovery to gather facts and prove your injuries. Discovery is a fact-finding stage of the lawsuit where both parties exchange information to uncover evidence that supports their positions. Discovery is a lengthy process that accounts for most of the time spent in litigation.
Lawsuit financing companies can provide lawsuit cash advances in as little as 24 hours. These are not traditional loans because they’re based on the strength of your case and not your credit. These lawsuit settlement advances are also nonrecourse, so you do not need to repay the loan if you lose your case. It removes much of the risk of lawsuit funding companies so that they can offer lower rates than conventional loans.
Have a Confirmed Settlement
Suppose you are considering applying for a lawsuit loan to help get your finances back on track after a severe injury. In that case, your legal case must be approved and confirmed by the insurance company. It’s also essential to have documented your injuries and recovery process extensively to support the maximum value of your pain and suffering damages. Keeping a daily journal detailing your injuries, including how they have affected your quality of life and relationships with family and friends, can be critical to helping your attorney negotiate a fair settlement award.
The great thing about pre-settlement funding (accident loans, lawsuit loans, or settlement advances) is that most companies will not do a credit check like traditional lenders. Instead, they rely on the strength of your legal claim and its estimated future value to make a lending decision. It makes the loan process much quicker and simpler.
That being said, it is still essential to have an open case and be actively represented by a personal injury lawyer before seeking a lawsuit loan. It is because your pending legal claim will secure the lawsuit loan, and you may need to restructure the agreement terms depending on how long it takes for your case to settle.
Completing the Application
Lawsuit loans help plaintiffs stay financially stable after a personal injury. However, these loans come with their requirements and interest rates, and it is vital to understand how they work before you apply. Work with a company with dedicated representatives who can provide detailed information about the loan terms.
Conventional lenders perform thorough assessments of an applicant’s financial standing and credit history, which can take significant time to complete. Lawsuit funding companies can evaluate your case and provide you with funds within days of the initial application. They may require certain confidential information about your accident, such as medical records and other documentation that can help them determine the strength of your claim. However, they should never compel you to waive your attorney-client or work product privilege to receive a lawsuit cash advance.
Typically, a lawsuit funding company will need basic information about you, your case, and contact information for your lawyer to process the application. Unlike conventional loans, which are repaid monthly with interest, a lawsuit cash advance is nonrecourse and does not have to be paid back if your case is lost.
If you require a lawsuit loan, your attorney will advise you on the best options. When discussing your injury with your attorney, be open about your financial needs to ensure maximum compensation.