Pre-Settlement Loans: Can You Get More than One? Answers to Your Funding Questions
It’s common knowledge that after suffering injuries caused by someone else’s negligence, you may be able to sue for damages and get compensation. Unfortunately, you may be waiting months or even years for your case to settle.
You can’t put your life on hold and catch up on bills later. That’s why so many plaintiffs take advantage of lawsuit loans. This type of funding can keep the bill collectors at bay while you take time to heal. You can get more than one lawsuit loan if necessary.
Who Qualifies for a Lawsuit Loan?
If you are a plaintiff pursuing compensation, you are probably an eligible candidate for a lawsuit loan. This type of funding has helped plaintiffs in a variety of cases including:
Personal injury cases
Medical malpractice lawsuits
Employment or labor law disputes
There is one requirement to be aware of before you apply: you must have legal representation. Hiring a lawyer can be beneficial to both your lender and your case.
When Would I Need a Lawsuit Loan?
No two personal injury lawsuits are the same. Your lawyer may need extra time to collect evidence to support your claim. If the defendant’s representative refuses a fair settlement, negotiations can drag on.
The defendant may know you are injured and may have to miss work while you recover. Stall tactics are sometimes used to force you to accept less than your case is worth. A lawsuit loan can tide you over while your lawyer fights for the full settlement you need to treat your injuries.
What if I Use Up My Loan Before My Case Settles?
If your case takes too long to settle and you run out of money from your lawsuit loan, you can always apply for additional funding. Some plaintiffs need two or three lawsuit loans. Depending on your lender, you may be able to take additional loans up to 10-20% of the value of your case.
The process of getting additional funding is similar to your first lawsuit loan application. Your personal finances will not affect your loan rates, and your credit score will not be checked. As soon as your application is approved, you can usually expect to receive funds within 24 hours.
How Do I Repay a Lawsuit Loan?
A lawsuit loan is not the same as a traditional bank loan that you repay in monthly installments. You don’t have to worry about a payment schedule or a penalty interest rate if you pay late. You don’t have to pay it back until after your lawsuit is won and you are awarded damages.
Once your case is settled, your lawyer usually will receive your settlement or court award. At this stage, legal fees and the lawsuit loan repayment amount will be deducted from your settlement amount. Your lawyer will repay your lawsuit loan lender and provide you with the remainder of your settlement.
What if I Lose My Lawsuit?
When you apply for a lawsuit loan, the strength of your case is assessed. If your application is approved and you are granted a lawsuit loan, it means your lender is confident that you will win your case. However, that’s no guarantee of winning.
If your case is dismissed outright or your case is resolved without compensation, your lender will not ask for repayment. If you lose your lawsuit, your loan will be dismissed.
If you sustained injuries in an accident, you can consult with a lawyer to discuss your options. An experienced legal team can advise you on filing a personal injury claim or lawsuit. Rest assured that if your case takes a long time to settle, a lawsuit loan can protect you.