One of the reasons people file lawsuits is to help cover expenses they can’t afford on their own. Unsurprisingly, many people find themselves short on funds while their lawsuits crawl along.
If you’re expecting money from a lawsuit but are short on cash now, a pre-settlement loan may be a good option.
Often called lawsuit loans, pre-settlement loans advance you money that will be paid out of lawsuit funds once your case either settles or reaches a verdict.
Before you get started, you want to know whether you’d be eligible for a lawsuit loan.
The good news is you can get pre-settlement loans for many types of lawsuits as long as you have an attorney, a strong legal claim, and a request for compensation based on harm the defendant caused you.
How Do Lawsuit Loans Work?
Pre-settlement loans help cover you while your lawsuit is pending. Receiving an advance starts with a few basic requirements. You must:
- Have an active lawsuit filed in a court of law,
- Have an attorney, and
- Be seeking a personal money award.
These elements are essential to showing a lender it makes financial sense to loan you money.
Types of Legal Claims Covered
If you have the basics down, you still need to know one more thing: Does the type of lawsuit you filed qualify?
Some lawsuits we have helped people find lenders for include:
- Employment disputes,
- Personal injuries,
- Environmental injuries,
- Defective products,
- Negligence, and
- Medical malpractice.
Even if your type of case doesn’t appear here, you may be eligible for a lawsuit loan if your lawsuit is based on harm you suffered that a payment of money damages could help mitigate.
Factors in Funding Decisions
Before you apply, you also want to understand how likely you are to receive the funds you request.
Underwriters typically balance the risks of providing funding with the benefits the loan offers the lender.
Lawsuit loans are non-recourse loans, meaning you do not have to pay them back if you do not win or settle your lawsuit.
Lenders primarily evaluate how likely you are to repay them, considering the strength of your case and what you’re asking for.
They may also consider what state you live in because different states have different regulations related to pre-settlement loans.
When deciding whether to award funding, the lender evaluates whether they think you are likely to win some or all of your claims.
The stronger your case, the more likely it is that the underwriter will approve the loan. Your attorney can help you understand the strengths and weaknesses of your case to frame it in the best light for a lender.
The Requested Amount
The lender also evaluates the size of the award you’re requesting to see how much the lender may recoup and how realistic the amount is.
They consider the evidence you have to prove you should get what you’re asking for, like medical bills or lost wage calculations.
They also consider what proportion of the requested award you’re requesting an advance on. The higher the percentage, the more risk they see in the loan.
How Injury Wallet Simplifies the Process
At Injury Wallet, we simplify the process of applying for pre-settlement loans by comparing rates on your behalf. We evaluate how trustworthy lenders are to help ensure you aren’t taken advantage of.
Our goal is to find the loan that benefits you, not the lender, most.
To start, you and your attorney fill out our lawsuit loan questionnaire. Then we send the information you provide to lenders throughout the country.
After identifying the lowest rate, we send it to you. You’re not locked into anything unless the rate and terms of the agreement look good to you.
Get started today to see what rates are available to you.