Lawsuit loan funding (also referred to as pre-settlement loans) is one option many personal injury plaintiffs consider when they are having trouble making ends meet during the settlement process. In some states, you may also hear that these types of loans are referred to as “Lawsuit Cash Advance”. This type of funding involves getting a loan on your upcoming settlement. Pre-settlement loans should not be confused with a traditional loan.
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.
You cannot get a lawsuit loan without an attorney’s consent. Before they agree to allow you to get a pre-settlement 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.
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 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?
What Types of Lawsuit Loans Can You Access?
Lawsuit funding covers a wide area of cases. You can get car accident lawsuit loans – payouts you can receive fast based on the potential value of your future settlement to cover medical bills and other expenses. Car crash loans are the most frequent, but you can access legal funding for workers’ compensation and negligence, defective products or drugs, slip and fall lawsuit loans for slip & fall accidents, premises negligence, and more. Depending on the complexity of your case, your attorney will help you choose the best loan terms and conditions for your needs.
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 cash on your settlement.
How Long Do Lawsuit Loans 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 immediately. 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.
Lawsuit Loans How To Get The Best Deal
If you’ve ever had trouble getting a loan from a bank or credit union, you may know what it’s like to apply for a lawsuit loan. These loans are made available by companies who specialize in lending money to people who have filed lawsuits against another party. They offer a quick turnaround time and a lower interest rate than most banks.
There are several things to keep in mind when choosing a lawsuit loan company. First, you should look for one that has been around for a long time. This means they have experience helping clients through the difficult times of filing lawsuits. Second, you should choose a company that specializes in personal injury litigation. This ensures that you are dealing with an experienced team of professionals who understand how to handle these types of claims. Finally, you should only deal with a company that provides fast approval and low-interest rates.
When you apply for a pre-settlement loan, you will receive a letter explaining all of the terms and conditions of the agreement. You may also receive a phone call from a representative who will explain everything in detail. Once you agree to the terms of the loan, you will be required to sign paperwork acknowledging that you have read and understood the terms.
How does Presettlement Funding Work?
A lawsuit loan is a type of financing where a lender agrees to pay money to settle a claim against them before they go to court. This means that if you win the case, you don’t have to repay the loan. If you lose the case, you still owe the money back. This should not be considered a typical loan agreement. Lawsuit settlement loans are usually offered at much higher interest rates than other forms of financing.
You should never use a pre-settlement loan without first consulting with an attorney. It is important to talk to someone who knows about this kind of financial transaction.
The amount of money you borrow depends on the value of your claim and the cost of litigation. Most lawsuits involve multiple parties and usually require expert testimony to prove liability. In many cases, the plaintiff must hire a lawyer to represent their interests. Insurance company records will often be reviewed.
The lawsuit loan company will provide you with a detailed estimate of the costs associated with your case. The total amount of money you’ll get after paying off the loan will depend on the size of the claim and the number of defendants involved.
You can use the money you borrowed to cover living expenses until your case settles. Many people use this money to pay medical bills, rent, mortgage payments, car insurance, and other necessities.
Once the case has settled, you will receive a check from the defendant. This check represents the full payment for your claim. You won’t have to pay anything else.
Are Lawsuit Loans or Pre-Settlement Funding 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 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 getting a lawsuit loan, consider 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 have 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 Lawsuit Loans?
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 can repay the loan on your own.
Some lawsuit loan companies do not need to check your credit score 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 confidential.
How Do I Choose the Right Lawsuit Loan Company?
Before you apply for legal funding for personal injury lawsuits, you will want to ensure you are working with a reputable lender before signing any agreements. The right lawsuit loan companies will offer complete transparency throughout the process and the personalized service you deserve when you’re making a serious financial decision that can impact your future.
High Rise Financial offers 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 funding is proper for you.
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“Great place good rates. Super quick and easy and the staff is very friendly.”