If you sustained injuries in an accident caused by another party’s actions, you might pursue a lawsuit to recover compensation for your damages.
However, litigation can take years to resolve. That could leave you struggling to pay bills while waiting for your case to settle.
Instead of accepting less than your case is worth to get some money now, you could apply for pre-settlement funding through a lawsuit loan company.
There are numerous lawsuit loan companies to choose from, making narrowing down your options daunting.
You can find the best lawsuit loan company for your case by asking the right questions.
In this article, the experts at Injury Wallet go over some of the most common questions.
Do I Need to Hire an Attorney to Apply for a Lawsuit Loan?
You will need an attorney representing you before applying for a lawsuit loan.
You cannot represent yourself and qualify for funding. The loan companies need specific documentation that only a lawyer can provide.
So the first thing you’ll need is a lawyer actively working on your case.
What Are the Other Requirements for a Lawsuit Loan?
We mentioned that you must have a lawyer representing you, but there are typically other requirements.
Your attorney must be representing you on a contingency basis (that is, a fee arrangement where your lawyer receives a percentage of the amount you are awarded when your case is completed), be agreeable to releasing the case information, and be willing to cooperate with the lawsuit loan company.
The lawyer must also acknowledge the pre-settlement funding lien if your lawsuit loan is approved and repay the loan before releasing any settlement funds to you.
Lawsuit loan companies may also require that you be 18 years of age or older and your case be worth over a certain amount.
Loan companies might also have different minimum value cases they are willing to accept.
What Can I Spend the Pre-Settlement Funding On?
Once you are approved and receive your funds, you can spend the money any way you like.
A lawsuit loan company won’t put restrictions on how you spend the money.
If a company does, you should continue searching for the best lawsuit loan company for you.
Your pre-settlement funding can help you with:
- Mortgage or rent payments,
- Rent or mortgage payments,
- Electric bills and other utilities,
- Groceries and food,
- Car payments and car insurance,
- Other insurance premiums, and
- Modifications to your home due to your injuries.
These are several examples of things people typically use their lawsuit loans to cover, but again, it’s your choice on how to spend the loan.
How Long Does the Approval Process Take?
When you work with a top lawsuit loan company in the industry, they will work quickly. Once you are approved, you could have cash within 24 hours in some cases.
The process should move at the same speed whether you are located across town or several states away.
If a lawsuit loan company tells you that it will take a week or longer to receive your funds after approval, it’s time to move on to another company.
What Happens If I Lose My Case?
Lawsuit loan companies don’t ask for repayment should you lose your case. If the court rules against you, the lawsuit loan company will not pursue you for reimbursement of the advance.
You won’t receive a negative mark on your credit, receive harassing calls from bill collectors, etc.
If a company tries to force you to sign a repayment schedule agreeing to repayment if you lose your case, immediately discontinue the application process.
Does Your Lawsuit Loan Have Any Fees?
The idea behind a lawsuit loan is to alleviate your financial stress, not add to it. Top lawsuit loan companies don’t charge you any upfront fees.
Lawsuit loan companies typically make their money from interest on the loan. Accrued interest and the principal will be repaid from the lawsuit settlement after your trial concludes.
Don’t accept any pre-settlement funding offers that cost you money before your case ends.
What Are the Benefits of Applying for a Lawsuit Loan?
There are numerous benefits when you apply for a lawsuit loan. It can alleviate your financial worries while allowing your attorney to continue fighting for the maximum compensation in your case.
Insurance companies will typically offer less than your case is worth to get you to settle early on. Their primary goal is to limit their exposure and reduce their potential payout.
How to Find the Right Lawsuit Loan Company
Choosing the best lawsuit loan company for your case takes considerable time and research if you handle this independently.
However, Injury Wallet can make the process much easier. We are not a lawsuit loan company, but we work with the best in the industry.
We are your one-stop-shop for finding the top lawsuit loan company for your case.
Rather than add to your existing stress, Injury Wallet will do all the heavy lifting for you. Once you fill out a brief questionnaire, we will take your case and shop it to the top companies.
We will bring the best offer back to you, and you can decide if you want to proceed. Contact us today to learn more and start the pre-settlement funding process.