Lawsuit loan funding is one option many personal injury plaintiffs consider when they are having trouble making ends meet during the settlement process. This type of funding involves getting a loan on your upcoming settlement. In exchange for agreeing to pay the lender back with interest out of your settlement, they will give you the funds you need to see your claim through to its conclusion.
Before they agree to allow you to get a loan on a lawsuit, your personal injury attorney will need to work with the funding company to determine if your claim is likely to be successful. You will need to fill out an application with your lawyer’s help. You cannot get a lawsuit loan without an attorney’s consent.
How Does a Lawsuit Loan Work?
When you get a lawsuit loan, the lender will agree to give you a portion of your anticipated settlement now in exchange for a repayment of this sum plus interest at the time of your claim’s conclusion. If your claim fails to settle and you don’t get an award in court, depending on the company you use, you may still be responsible for paying back the cash and the interest.
You may have heard lawsuit loans described as settlement loans, settlement funding, or a settlement cash advance. No matter what it is called, what is important is the answer to one critical question: do you have to pay if you lose your case?
Do You Have to Pay a Lawsuit Loan Back if You Lose?
When you get a traditional lawsuit loan, you will be on the hook for the cost of your loan plus interest. If your case doesn’t settle, you will still be responsible for repaying the funds. This is a risk many plaintiffs are not willing to take, and with good reason. However, some lawsuit loan lenders do not require plaintiffs to repay their loans if they lose their case.
Once your representative has reviewed your case, they will determine whether or not your claim is likely to settle. If it is, lenders may be willing to take a risk by giving you a cash on your settlement.
How Long Does a Lawsuit Loan Take?
The lawsuit loan process may be faster than you think. Once you contact a representative from High Rise Financial, you can begin the application process right away. Most applications will be approved or denied within 24 to 48 hours. If your application is successful, you could receive cash for your lawsuit loan in as little as 24 hours.
Are Lawsuit Loans Worth It?
When you get a lawsuit loan, you will agree to a set amount of interest in advance. While some consumer advocacy groups and lawyers believe the cost of lawsuit loans is too high to be worth it, many plaintiffs consider this type of funding to be a lifesaver. Whether or not pre-settlement funding is worth the cost will depend on each plaintiff’s unique circumstances.
If you’re wondering whether or not it would be worth it to get a lawsuit loan, consider the fact that having more time to settle your lawsuit could result in a larger settlement. Even after paying a lawsuit loan company’s fees, you may still end up with enough that having the survival funds in the meantime was worth it.
How Do You Borrow Money from a Settlement?
To borrow money from your pending settlement, you will need to reach out to a representative at a reputable legal funding company. At the best lawsuit loan companies, you will work with a single, dedicated representative, so you won’t need to worry about being shuffled from department to department when you have questions.
Your representative will communicate directly with your personal injury lawyer to gather information about your claim that will let them know whether or not you are a good fit for pre-settlement funding. In many cases, you may be able to get funding within 24 to 48 hours.
Do You Need a Credit Check for a Lawsuit Loan?
Because traditional lawsuit loan companies require you to repay the funds you borrow from them regardless of the outcome of your case, they may require you to provide tax returns, paycheck stubs, and other financial documents to demonstrate that you are able to repay the loan on your own.
Some lawsuit loan companies do not need to check your credit or see any of your financial documents to get you approved. If some lenders determine that your case is likely to settle, the rest of your private financial information can remain private.
How Do I Choose the Right Lawsuit Loan Company?
Before you apply for legal funding for personal injury lawsuits, you will want to make sure you are working with a reputable lender before you sign any agreements. The right lawsuit loan companies will offer complete transparency throughout the process, along with the personalized service you deserve when you’re making a serious financial decision that can impact your future.
At High Rise Financial, we offer complete transparency throughout the legal funding process. We are happy to answer your questions about lawsuit loan interest rates and any other aspect of the process. If you need a personal injury lawsuit loan to make ends meet while you wait for a fair settlement, ask your attorney if this type of funding is right for you.