Lawsuits arise every single day, but approximately 95% of all lawsuits settle before going to trial.
If you’re in the midst of a lawsuit, you’ll probably settle before going to trial, too, but settling a case still takes time.
If you desperately need some cash during your lawsuit, you might want to find out if you can get a settlement loan cash advance. The main question to ask is, “Are you eligible?”
You can read this guide to learn more about the eligibility guidelines for lawsuit settlement loans to determine if you should pursue one at this time.
The Purpose of Lawsuit Funding Loans
Getting a settlement loan is quite common for people who find themselves trapped in long-lasting lawsuits. When you get in a lawsuit and expect a large settlement, you can expect it to take time.
Some lawsuits take well over a year, while others might take several years. In any case, settling them takes time, which often leaves people in financial binds.
If you find yourself in a financial crisis during your lawsuit, you might want to consider taking a lawsuit loan. While some people don’t need to borrow money during this time, others do.
The purpose of lawsuit funding loans is very simple. A lawsuit funding loan gives the plaintiff in a lawsuit money now instead of waiting to receive all of it later.
Some people find themselves in situations where they can’t work due to injuries they’ve sustained from the incidents that led them to the lawsuits.
For example, what if you have a head injury from a car accident? Head injuries are common from car accidents, and they can leave a person unable to work.
If you can’t work because of your injuries and don’t have a large bank account, you might have no money to use for your living expenses. What do you do if this happens?
Many people turn to lawsuit loans. A lawsuit loan provides cash now, and it is simply an advance from the cash you would receive from the lawsuit settlement.
The cash will be yours eventually, but this gives you access to it now.
You can use the cash to pay your everyday expenses or debt payments. You can also use it to pay your medical bills from the incident. If you want, you can place the money in the bank and use it as needed.
The good news is that you can use the money however you’d like, as it’s your money.
The Main Criteria for Getting a Settlement Loan
If you want to get approved for a settlement loan, you’ll need to determine if you meet the criteria. Most lawsuit loan lenders have only a few requirements, and here are the main ones:
You Must Have an Attorney
First, you must have an attorney representing you. While many people choose to represent themselves in lawsuits, doing so will preclude you from qualifying for lawsuit funding.
If you want to get approved for the loan, you must have a lawyer. The lender will verify this by contacting your attorney.
You Must Be in an Open Case
The second requirement to get a lawsuit loan is you must have an open case. You can’t apply for a lawsuit loan until your lawyer verifies to the funding institution that you have a bona fide claim. You don’t actually have to have the lawsuit filed yet, but your case must be active with plans to file a suit through your law firm.
The lender will verify that you have an open case before they approve your loan, so make sure you’re in an active case before applying.
You Must Have Good Odds of Winning the Case
The other main factor that affects your ability to get lawsuit funding is your odds of winning the case. You must have favorable odds of winning the case if you want the lender to approve your loan request.
The lender will talk to your attorney to learn more about this before issuing you a loan.
After reading this, you might know whether you qualify or not. If you believe you do, you can contact a settlement loan lender to find out more about the process.
The process is simple. You apply for the loan. Once the lender receives your application, they review it and provide an answer within days. If they approve the loan, they’ll send you the money right away once you and your lawyer sign the funding contract.
The Pros and Cons of Lawsuit Loans
The last thing to consider before taking a lawsuit cash advance is the pros and cons. You might even want to carefully consider if you need the money.
You can decide if you should get one by comparing the following pros and cons of lawsuit funding loans:
You can reap several benefits from a lawsuit loan. The first is that it offers access to the cash you need to pay your bills. If you’re struggling to pay your bills after an accident, you can find some relief through this funding.
You’ll receive part of your settlement now instead of waiting another year or two to get it. As a result, you’ll have the cash you need to pay your debts.
Secondly, you won’t have to repay the money, even if you happen to lose your case. The lender doesn’t require repayment of lawsuit funding loans. If you lose your case, the money is yours to keep.
There is really only one downside to getting a lawsuit loan, which is the interest. You’ll have to pay interest and fees to take the loan.
You can compare the interest and fees from lenders to find a lender with the lowest rate if you wish. These are not really loans and interest like a traditional loan, they are not paid out of pocket and are only paid back if you win the case. But, it can get costly at time of settlement, so only take what you need.
Are You Eligible? Find Out Today
So, are you eligible for a lawsuit loan? If you believe that you meet the criteria listed here, you might be eligible.
The best thing you can do is contact a lawsuit loan lender to find out. At Legal Bay Lawsuit Funding, we offer these loans. You can contact us to learn more about getting approved for one.