Who Is Eligible for Pre-Settlement Loans?
Not every single case will qualify for pre-settlement loans. If you have questions about your eligibility, this article is for you!
Lawsuits can prove to be taxing to the people involved, no matter how prepared they think they are. It is both time-consuming and it can also rack up a lot of expenses. While waiting for the settlement to come through, expense for other basic needs like food and medical bills.
This is a struggle for those who suffered injury or loss that was in the lawsuit. While waiting for the settlement, they can avail of pre-settlement funding to help with financial needs. How does one qualify for pre-settlement loans?
Today, we will look at the details on how one becomes eligible for pre-settlement loans. These details can help you understand if your case counts and qualifies for it.
What is Pre-Settlement Funding?
Pre-settlement loans are a way for a person involved in a case to get a portion of the settlement. This portion allows them a means of reprieve from financial worries.
Due to the legal proceedings and how much toll it took on them, it can be draining on each aspect. For this, they can use the funding to take care of overdue utility bills or use it for medicine and so on.
One thing to remember about this is that the amount that you receive from the pre-settlement funding depends on what the person receives once the case finalizes. This amount acts as the basis for the estimate that you would receive from the loan.
Should You Get a Pre-Settlement Loan?
Pre-settlement funding is an attractive option. More so when you need an alternative means of funding while you’re indisposed.
Though this is for situations where the need for payment is urgent. For instance, when you need to pay bills that may come overdue.
Consider going for pre-settlement loans if you were a victim of an accident and you are not the one at fault. This is also a suitable arrangement when you have living and medical expenses that caused you to struggle with debt. Also, this is an option to take when you notice that the case takes a long time to settle.
In such situations, a pre-settlement loan can help you. Although you would need to check the requirements and see if you qualify for the funding.
Qualifications for Pre-Settlement Funding
What are the requirements for a pre-settlement loan? You need to check if you qualify first.
To see if you count for pre-settlement loan eligibility, try to see if any of these conditions apply to you. These conditions will help you see if your case lets you qualify for the funding. Here are the qualifications to take note of.
A Valid Personal Injury Lawsuit
First, you need to have a suit that qualifies for the pre-settlement. In this case, the cases should involve you sustaining injuries or compensable damages.
You have a number of cases that would qualify for this condition. Among these include medical malpractice claims, auto accidents, employment discrimination, and so on.
You also have slip and fall cases. As well as product liability cases, and premise liability cases. These qualify as well for the pre-settlement funding.
Lawyer Hired on Contingency
For this condition, you hired a lawyer on contingency. With this arrangement, the payment for your lawyer will only get paid when you win or settle the case. Once that happens, that is the time when they collect the fee.
One thing to note about this arrangement is that it is a requirement. Your lawyer has to be on a contingency arrangement before you could avail of the pre-settlement loan.
Approval from Lawyer Regarding Pre-Settlement Funding
Of course, you also need to be in agreement with the lawyer. They have no means to refuse this arrangement.
Even so, they still have the right to know that you plan to apply for pre-settlement funding. If they chose to agree, they can see that it is a good idea and your case has a chance of winning.
The reason why this is a requirement is due to the attorney-client privilege. What this means is that your attorney would likely refuse if it is to protect your best interests. It is part of their obligation as your lawyer.
With the lawyer’s approval, that would be the only time that the pre-settlement funding application qualifies. This leads to the next aspect.
Application for Review and Approval
Once you have the first three conditions cleared, the approval would be the next hurdle to get past. At this point, the case will go under review to see if it is likely to win or settle. From there, the deliberation would decide whether they grant you the advance.
Once your case gets approved for pre-settlement funding, expect to see your cash advance. At that point, you will be able to use it.
What Happens Next?
Two things can happen once your case gets reviewed and your application goes through. If your application passes, you get to receive the cash advance. This should allow you to use it to cover the expenses that you need to address.
If it does not get approved, you do not owe the lender anything. While called a pre-settlement loan, it would not count as a loan at all. The lender is more towards the act of purchasing a part of the settlement that you would receive from the case.
Before going for the pre-settlement funding plan, though, take a moment to talk to your lawyer. Check with your attorney and get their thoughts on the matter.
Their advice matters here, letting you know if this is the right choice for the situation. Remember that they have the duty to protect your best interests.
Take Advantage of Pre-Settlement Loans Today
Knowing what you need to apply for pre-settlement loans, you can use this to get what you need for covering expenses. Before pushing for it, check with your lawyer for the best options and if this is a good idea. When ready, you can go ahead and start applying.
You can get started today by contacting us. We can help you with your needs for settlement funding and more.