Few situations cause more stress than receiving a funding denial when you need it most.
If you were denied lawsuit funding, it’s helpful to know common reasons plaintiffs were denied pre-settlement funding.
Lawsuit Funding Restrictions in Your State
Pre-settlement funding is available in most states. However, certain state restrictions could limit your ability to receive lawsuit funding.
Even more states place restrictions on plaintiffs seeking workers’ compensation settlement funding.
You will be denied lawsuit funding if you live in a non-fundable state.
You Don’t Have an Attorney
Lawsuit loan funding companies will not give you a cash advance if you don’t have an attorney.
If you do not have an attorney—or your attorney will not work with the lender—the lender will automatically deny your application.
A lawsuit funding denial because you do not have an attorney is not the end of the road.
Consider hiring an attorney on contingency who will work with a pre-settlement loan company. Then you can re-apply for your loan.
Your Case Is Too New
Lawsuit loan funding companies must evaluate risk before they offer a cash advance. Lenders must obtain enough evidence to establish proof of liability.
This evidence includes medical documentation, insurance limits, police reports, and liability determinations.
If it’s too early in the case, this information may not be available.
If the pre-settlement funding company cannot evaluate the risk, the lender will not approve your application for a cash advance.
The inability to assess risk will result in denied lawsuit funding.
Your Other Financial Liabilities Don’t Meet Guidelines
Lawsuit funding companies make lawsuit funding eligibility decisions without using credit scores or income as a factor. However, funding companies will review your financial liabilities.
You may be denied lawsuit funding for certain negative financial obligations, including:
- Unpaid medical bills,
- Child support liens,
- Recent bankruptcies, and
- Tax liens.
A lawsuit funding denial due to financial liability black marks isn’t the end of the road. When these liabilities are resolved, you can re-apply for a lawsuit loan.
You Have Already Reached the Limit for Available Funding
If you previously received a lawsuit loan, you may have reached the maximum funding limit. Applying for multiple pre-settlement loans is acceptable.
It is common for plaintiffs to seek additional funding. But once you receive the maximum funding allowed for your case, your application may be denied.
Denied Lawsuit Funding? Contact Injury Wallet
If you’ve been denied lawsuit funding, please contact Injury Wallet. We can help you get the best possible lawsuit loan rate.
We act as a liaison between you and the lawsuit loan company. Even if you received a previous denial, finding a lawsuit loan company may be possible.
Depending on your circumstances, you may be able to eliminate the cause that led to the denial. Contact us online or give us a call.