With all the conflicting information out there, it can seem like the rules on how to go about obtaining a loan for your lawsuit settlement can seem almost impossible to understand. Terms like “presettlement loan” and “settlement funding” might be tossed around in regards to your “loans for settlements” search, but the truth is, they all pretty much mean the same thing. Taking out a settlement loan is essentially taking a cash advance from your anticipated settlement amount prior to the final resolution of your case.
Basically, if you’re looking for an easy way to get some much-needed cash from your pending lawsuit, then presettlement funding may be right for you.
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Pending lawsuit?
If you’ve already filed suit against another party and are still waiting for the courts to hear your case, your lawsuit is regarded as “pending.” From the date you file until you actually go to trial can take a very long time. All the while, you may be dealing with monetary issues as you wait for a judgement in your favor. Taking out a loan against your future settlement is a great way to relieve your financial stress until your case finally makes it to trial. Loans for settlements are becoming a very popular option for plaintiffs who want cash now but don’t want to wait for their cases to settle.
What do you mean by “financial stress?”
Waiting for your lawsuit can be costly, especially if you’re out of work due to injuries, and medical bills aren’t going to pay themselves. On top of all the extra expenses, you may now have lessened income. Your medical fees and personal bills may be piling up. In any case, you need cash and you need it now. This is where loans for settlements can really assist your cause.
The legal process can be slow-moving, and many plaintiffs have not considered the financial strain they will incur as they wait for their cases to settle. Your lawsuit may drag on for months or even years as your bank account gets drained. If you’re wondering how you can survive until your lawsuit makes it to trial, it may be time to consider pre-settlement funding.
Even though most court cases can take a long time before they’re settled, that doesn’t mean you have to wait for your settlement payout. Loans for settlements exist for this very reason. Rather than wait out the many months for a final ruling on your case, you could get a loan for your settlement amount within days.
Days? How is that possible?
The pre settlement process is actually pretty simple, and yes, very fast. Once you’ve spoken to your lawyer about it, you’ll want to research the best funding company that specializes in loans for settlements. Once you’ve decided on a funding company, your next step will be to fill out an application. This should not be a lengthy document, and filling it out should be completely free of charge.
Generally, the information the funders are looking for will be your basic contact information, the type of case you’re litigating, and the name and phone number of your attorney. At that point, the funding company will reach out to your lawyer for further information. They will review your case, and if your lawsuit has merit, your settlement loan will be approved. Boom. Cash in hand in as little as 48 hours.
Yeah, but the money isn’t really free, is it?
Not exactly, but it should definitely not cost you anything up front, and it may not even cost you anything in the long run, either. Here’s why:
Say you are expecting a large settlement from your lawsuit. While your case is caught in limbo, you may have pressing financial needs. Rather than wait out the many months for a final ruling on your case, you could get a sizable payout almost immediately. In other words, instead of settling your claim for a lowball offer just to get a quick payout, you can take out a loan for your settlement today, enabling you to hold out for a larger payout down the line at the culmination of your case. Basically, it’s possible for a cash advance against your lawsuit to pay for itself.
Can’t I just get a bank loan?
Loans for settlements aren’t like bank loans, with a very important distinction between the two. If you are looking for financial relief in your time of need, the last thing you’d want to do is add to your debt, and that’s exactly what a bank loan will do. So, if you’re in the process of researching a bank loan, you should know that a loan for settlement would benefit you more. Because in actuality, loans for settlements aren’t like bank loans at all. They are a much better option for obtaining some needed cash, if for no other reason than that they are non-recourse.
What’s “non-recourse?”
Non-recourse means you don’t have to pay back the lawsuit money if you lose your case. There is no recourse from the funding company if your lawsuit ultimately fails, meaning that the funding company won’t come knocking on your door looking for money you never received. No monthly payments; no interest fees. No harassing phone calls; no payback.
This is part of the risk that funding companies will assume in providing loans for settlements. With a bank loan, the borrower has to have extensive collateral, an acceptable credit rating, and be prepared to incur fees and interest charges. Since loans for settlements are not like bank loans, credit approval isn’t needed to qualify.
Won’t my credit rating still suffer?
Your credit rating is of no interest to a lawsuit funder. If your case is strong, then you will not be denied unless you are in active bankruptcy or owe child support liens. The best funding companies will be able to get you the lowest cost non-recourse loan to suit your needs.
Loans for settlement are based entirely on the merits of the case, and nothing else. Also, many people who are injured and out of work cannot obtain traditional bank loans, so settlement loans are their only option. Plus, they are much faster. If someone applies for a bank loan or new credit card, the process could take weeks, if not months. The best funding companies can have you approved for a presettlement loan within 48 hours.
How do I find the best funding company?
Your lawyer will be a good place to start when looking for a funding company. He or she can recommend a funder they’ve worked with in the past, one that you know you’ll be able to trust. You can also simply search the internet to find a funding company that will best be able to meet your needs.
The most important thing in picking a funding company is to ensure that they are a direct funding source, and not a broker sending your case to another funder, strapping you down with added charges. Also, reputable funders will never expect any upfront costs.
When researching funding companies regarding loans for settlement, it’s important for a consumer to speak to a trustworthy funder that has fair rates. This way, you can ensure that you get to keep more of your payout when it comes time to settle your case. The fees can vary, so what matters most is that the payback terms are clearly disclosed on your contract.
There’s no commitment just to speak with a funding company and fill out an application. The application should be free, and the payback terms should be explained in detail so there’s no confusion when it comes time to sign the contract. If it turns out you don’t like any particular terms, you can simply deny the loan and move on to a different funder, or decide not to take out a loan for settlement at all.
Does my lawsuit even qualify for a settlement loan?
Most funding companies focus their efforts on automobile accident and personal injury cases. Personal injury cases can include slips and falls, premise liability, medical malpractice, and construction accidents, amongst others. However, many funding companies will consider loans for settlement on almost any case in which there is liability, damages, and insurance, such as wrongful termination, discrimination, sexual harassment, sexual abuse, and more. Plaintiffs have been awarded a cash advance for lawsuits of every kind.
Not every case will be approved; only cases that show clear fault on the defendant or clear injuries to the plaintiff will be approved for a loan for settlement. Defendants must also have good insurance to ensure someone will pay for the damage they caused to the plaintiff. A good lawsuit funding company will find a way to get you the money you have coming to you.
How much money can I get?
Most funders will work within percentage limits, which are normally anywhere from 15% to 20% of the total value of your anticipated settlement amount. But you should only take the amount of money that you absolutely need to get by. In the end, loans for settlements are expensive and will cut into your ultimate payout at the conclusion of your trial. Contrary to what people might think, lawsuit settlement funding companies do not want to see this happen. If they are reputable, they will advise you to take only what you need.
What can I use the money for?
Bills. Medical expenses. Mortgage, rent, car payment, utilities, college tuition… anything that you want to use the money for, you can. If you’d like to ease the financial stress caused by these or any other outstanding bills, taking out a loan for your settlement may be the right choice for you. It’s up to you to decide if a monetary influx is important to your needs at this time.
Probably the greatest advantage to acquiring a loan for your settlement is peace of mind. Worrying over the details of your lawsuit can cause seemingly unending stress. Couple that with financial strain, and it’s enough to instill unfathomable fear as well. A presettlement loan can help to lift the burden and offer you room to breathe.
Where Can I Go?
In conclusion, loans for settlements provide consumers with financial options. Some may be good or some may be costly, but at the end of the day, the decision to proceed is up to you. Loans for settlements can provide a tremendous opportunity when utilized correctly.
Obtaining a loan for settlement can be a very expedient process. Since knowing the exact date your court case will settle is an impossibility, a loan against your lawsuit settlement can be a great way to get the cash you have coming to you without having to wait. While the course of action may take longer or shorter periods of time depending upon your specific situation and case, if you’re dealing with a reputable funding company, the time from application to cash-in-hand can be as little as 48 hours.
Legal-Bay is one of the best pre settlement funding companies in the industry. We’d love to speak with you and show you why. If you’d like to know more about lawsuit funding or about loans for settlement, 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 loan on your lawsuit.
