Content Provide by LawLeaf, a lawsuit funding company.
A lawsuit loan is a non recourse cash advance against a pending lawsuit or a case that has recently reached a settlement. Lawsuit loans are provided to plaintiffs that want to borrow against future proceeds from a personal injury or commercial dispute. Unlike a standard bank loan, if the plaintiff loses their case, they don’t have to pay back the lender.
How can you qualify for a lawsuit loan?
There are several factors in qualifying for a lawsuit loan:
- A person must be represented by a lawyer.
- A person must be the plaintiff in the lawsuit. Companies will not provide advances do the defense.
- The representing attorney must submit paperwork to the lender on your behalf. This paperwork is known as case documentation.
- After reviewing the documentation, the lender must believe liability exists and the plaintiff will win the lawsuit.
Why do people apply for lawsuit loans?
There are many reasons why some plaintiffs secure lawsuit loans:
- The plaintiff in the case has lost their job or wages resulting from an accident.
- The insurance company is unwilling to offer a fair settlement on the case.
- The plaintiff is not interested in settling for less money and a lawsuit loan is the only way to hold out for a better offer.
- The case has recently been appealed by the defense and the plaintiff has run out of all other financial options.
- A person may need money for investment purposes or for a down payment on a home.
- A person may need to pay down medical expenses or need money for additional treatments.
- A person may need money to help pay for living expenses while waiting for a settlement.
How quickly does it take to get a lawsuit loan?
When a person applies for a lawsuit loan they must be aware that the process can take anywhere from 24 hours to several days. In order to get the process moving along the lender will need to immediately request the appropriate documentation from your attorney. Once the documentation is received, a lender should be able to underwrite the loan within a few hours. If the case is complex it could take several days, as some lenders may need to outsource the underwriting process to someone more specialized in the lawsuit.
For additional information on lawsuit loans, visit LawLeaf today.