So, you’ve made the decision to file a lawsuit. Whether you were injured on the job or through a medical procedure, terminated from employment due to discrimination, or intentionally abused by another party, you have chosen to take your grievance to the courts.
The legal process can be lengthy and expensive, and many plaintiffs have not considered the financial strain they will incur as they wait for their cases to settle. Your suit may be stuck in limbo as your bank account gets drained. On top of all the extra expenses, you may be unemployed due to injury or because of wrongful termination. Your legal fees and personal bills may be piling up. In any case, you need cash and you need it now. If you’re wondering how you can survive until your lawsuit makes it to trial, it may be time to consider a cash advance on your pending lawsuit.
Why Is It Needed?
Some people choose to research how they might take out a cash advance on a pending lawsuit as a way to receive money prior to the resolution of their case. A cash advance on a pending lawsuit can be a helpful option for any plaintiffs dealing with financial strain, and a great source of income over the many months it takes for a case to make it to trial. Borrowing against your settlement can help you stay afloat financially and empower you to hold out until the end of your trial so that your lawyer can get you the best possible settlement amount.
While you may be searching for ways to obtain a “loan on my lawsuit” or “lawsuit loans,” a cash advance on a pending lawsuit is actually known as lawsuit funding. You probably have some additional questions regarding a cash advance on a pending lawsuit, so let’s try to answer them before we go any further:
What Is Lawsuit Funding?
Lawsuit funding is a cash advance on a pending lawsuit based on the monetary compensation one can expect to receive at the end of a trial. Sometimes, a cash advance on a pending lawsuit is referred to as a lawsuit loan, but that’s not exactly the right terminology, because it isn’t necessarily a “loan” at all. A cash advance on a pending lawsuit is non-recourse, so it’s a no-risk proposition for the consumer.
What Does “Non-recourse” Mean?
This is a vital phrase that you should make yourself familiar with while researching any type of “loan.” More importantly, you should know that lawsuit funding isn’t like a bank loan. It is a better option for a way to obtain a much-needed cash advance on a pending lawsuit. The reason why is because lawsuit funding is non-recourse. Non-recourse means you don’t have to pay back the cash advance on a pending lawsuit even if you lose your case. No monthly payments; no interest fees. No credit checks; no collateral. Bank loans don’t offer such ease of approval, and they are certainly not non-recourse.
Who Can Help Me Get A Cash Advance On A Pending Lawsuit?
A lawsuit funding company acts as your liaison between you and your cash advance on a pending lawsuit. They will be able to look into your case and tell you how much funding you can actually get from it. Filling out an application with a good funding company will be the first step toward receiving cash now, as opposed to waiting until the trial has concluded and a ruling has been passed down.
So, now that you’re familiar with what it is you’re actually looking for, let’s see if a cash advance on a pending lawsuit is right for you.
- Find yourself falling behind on your mortgage, rent, cable, or utilities?
- Want some extra cash now without having to wait?
- Need a monetary influx to pay outstanding legal, medical, or personal bills?
- Want money to take a vacation, open a new business, or pay school tuition?
A cash advance on a pending lawsuit will allow you to:
- Get caught up on your bills
- Enable you to survive financially over the many months leading up to trial so that you can hold out for a larger settlement
- Relieve the financial burden you’ve incurred because of events surrounding your lawsuit (Legal fees, lessened employment, and / or personal expenses)
- Rid yourself of some of the stress you may have been feeling since filing suit
Now that you’ve made the decision to pursue a cash advance on a pending lawsuit, you may be asking yourself how to go about obtaining one. Well, it’s not as difficult as you might think.
Step 1: Speak to your lawyer. He or she will be able to advise you on the pros and cons of a cash advance on a pending lawsuit. You will need your lawyer’s cooperation in order to proceed. It’s important that you do your research to make sure you are fully aware of the terms and conditions of your potential funding arrangement, and your lawyer will help you to understand the ins and outs.
Step 2: Now it’s time to choose a funding company. There are many of them out there, and you’ll want to make sure you’re dealing with a reputable one that will get you the best deal for your cash advance on a pending lawsuit. Unfortunately, there doesn’t seem to be too much information readily available through mainstream outlets, resulting in distorted facts and assumptions when it comes to funders. This can leave unsuspecting plaintiffs vulnerable to predatory lending practices. Your lawyer may be able to suggest a good funding company, but you can also do some research on your own. The most important thing to consider while researching a cash advance on a pending lawsuit is to make sure your funding company is a direct lender and not a middleman for some overpriced broker.
Step 3: After you’ve spoken to your lawyer and chosen a funding company, you’ll want to get the ball rolling on your presettlement loan process by filling out an application. The application should be brief, and more importantly, free. There should absolutely not be any upfront fees. After your lawyer submits the necessary paperwork, the funding company will do some minor research to find out if your case has merit.
Merit will be the defining factor to determine whether or not you will be able to obtain a cash advance on a pending lawsuit. It is decided based on three factors:
- Liability (Who is responsible for the hurt caused to the plaintiff?)
- Damages (How much harm was caused?) and
- Insurance (Does the responsible party have the financial means to compensate for the injured party?)
Basically, the amount of cash advanced on a pending lawsuit will be based on the expected value of your case and the risk associated with it. Severe injuries, clear cut discrimination, and blatant medical malpractice will, of course, be eligible for larger compensation than a minor lawsuit might be. If the funding company decides your case has a high probability of settling at an amount that they feel is enough to repay their loan, they will contact you and arrange to give you the money.
How Does Reimbursement Work?
Not every case will be approved for a cash advance on a pending lawsuit; only cases that have a clear fault on the defendant and clear damages to the plaintiff will be accepted. Defendants must also have good insurance to confirm that someone will pay for the harm they caused to the plaintiff. Most funding companies won’t offer a cash advance on a pending lawsuit unless they are assured they will get their money back.
Reimbursement costs can range from 1.99% per month to 3.99% per month in compounding interest. Most have rates ranging from 30% to 60% annually, and there are also different types of contracts that charge no more than 200% of the amount funded. A conversation with your lawsuit loan funder will give you a more comprehensive idea of any costs associated with a cash advance on a pending lawsuit.
The good news is that whether you like the terms or not, lawsuit settlement funding contracts are very transparent and explain exactly what you will owe when your case settles. At that time, your lawyer will directly pay the funding company any amount owed on your contract. And if you lose your case, you’ll owe the funding company nothing.
Once the lawsuit funding company determines there is merit to your case, you will very likely be approved for a cash advance on a pending lawsuit and your money can be obtained within days.
How Do I Know If I Qualify?
It’s easy to find out if you qualify for a cash advance on a pending lawsuit. If you’ve suffered any damages and have already hired an attorney, your odds of qualifying are very good. Remember, your credit rating or financial history has no bearing on the approval process. The facts of your case are all that matter.
So, to get back to the original question of whether you can obtain a cash advance on a pending lawsuit, the long answer is above. The simple answer, however, is that the merits of your case will be the sole factor to determine if you will be approved.
Some additional tips if you’re thinking about applying for a cash advance on a pending lawsuit:
- Research multiple funding companies to find the lowest interest rate while paying close attention to possible hidden administrative fees. Be sure you understand what the compounding interest will be and how you can compute it yourself. Make sure you know exactly how much a cash advance on a pending lawsuit will ultimately cost you when your case finally settles.
- Don’t use loan brokers. They charge higher fees. Deal directly with a reputable funding company. If you’re not sure if you’re dealing with a direct funder or a broker, ask the company if they are handling the loan on your lawsuit directly… or if they’re referring you to a loan company.
- If you’d like to better your chances of getting approved for a cash advance on a pending lawsuit, your best course of action is to be completely honest about your case. There’s no need to exaggerate your claims or falsify information.
- Don’t sign any contracts or loan agreements until your attorney has had a chance to review them for you.
- Listen to your attorney. He or she is looking out for your best interests, but remember that the decision to pursue a cash advance loan on a pending lawsuit is ultimately up to you.
Since knowing the exact date your court case will settle is an impossibility, a cash advance on a pending lawsuit can be a great way to get the money you have coming to you without having to wait.
Legal-Bay will be happy to help you figure it all out. If you’d like to reach out, we have an entire team of very skilled, very dedicated employees who will be able to offer all the details and answer any questions you may have. We offer pre-settlement funding loans of all different types. And because the loans are non-recourse, you really have nothing to lose. Your cash advance on a pending lawsuit is only paid back once your case settles, so there is little to no risk involved.
If you’d like to know more about lawsuit funding or about a cash advance on a pending lawsuit, you can visit our FAQ page, and feel free to contact us for more information on how you can obtain a non-recourse cash advance on a pending lawsuit.