If you have filed a lawsuit against someone following an accident or because of a civil matter, it can take quite a long time before you obtain the money from a ruling by the judge or from a settlement with the insurance company. While you wait, your bills will continue to pile up, and you will need to find ways to pay those bills. You can seek an advancement on a potential settlement via legal funding from a pre settlement funding company.
This type of loan (also known as a cash advance with interest) is only available when there is a pending lawsuit. This means that you cannot obtain a lawsuit loan in any other situation. You need to be actively involved in a lawsuit for lawsuit loans to be considered. The reason for this is that the borrower is actually provided with cash in the anticipation that you will win a judgment in the case or settle outside of court.
The situations in which a pre settlement fund company is a good option for you for settlement loans include the following:
- You (the plaintiff) suffered an injury in an accident that was caused by another person
- You hired a lawyer and then filed a lawsuit against the negligent person
- You are in need of money to cover medical and living expenses while you wait for the case to be resolved
Outside of the situations mentioned above, it will be difficult for you to obtain pre settlement lawsuit loans from lawsuit loan companies even with interest.
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How Does Settlement Funding Work?
Settlement funding via a cash advance can be acquired from lawsuit funding companies because the plaintiff is waiting for the results of the following case types:
- Premises liability cases (slip and fall)
- Motor vehicle (motorcycle, truck, car, bus) auto accidents
- Personal injury cases (injuries to the hand, leg, arm, head, back, and other areas)
- Medical malpractice cases
- Wrongful death cases
- Workplace accident case
- Product liability case (you had to have used the product as directed and not illegally or incorrectly)
When you apply for pre settlement funding from lawsuit loan companies, you will need to provide information related to the pending lawsuit. This includes:
- The name of the attorney you hired
- The contact information for the attorney
- Docket information from the court regarding the lawsuit
The lawsuit fund company will then speak with the attorney representing the plaintiff about the case. The company will try to ascertain the chances of the case succeeding before deciding whether or not it will approve your application for a lawsuit loan that pays lawsuit cash.
It’s important to note that these assessments are not foolproof, which means that there isn’t a 100 percent chance that you will succeed with the lawsuit against the negligent person who left you injured. Even if you wind up winning the case, it’s possible that the judge awards you less compensation than you and your law firm expected.
Because of these uncertainties, the lawsuit loan company is taking a major risk of lending you money with settlement loans. Due to this, the lending company will likely only approve applications for a lawsuit loan if your case has a strong chance of being successful.
Your credit score does not play a role in the decision for a lawsuit loan or cash advance, which means the company will not contact the credit bureaus to determine your credit score. Since your credit score is not used, the interest rate won’t be based on that number. There are zero upfront costs associated with a lawsuit loan. There are no required monthly payments as long as your lawsuit is still pending. When the case is resolved, the attorney fees, settlement funding, and other related fees are deducted from the loan.
What Can I Use Settlement Funding For?
If plaintiffs are approved for a cash advance from lawsuit loan companies, you can use the funds for various expenses. There is no restriction on how you can use the lawsuit cash. If your vehicle was totaled in an accident and you still haven’t gotten it replaced because you are waiting for a check from the insurance company, you can use the funds to rent a vehicle or buy a new one.
Funds from lawsuit loans can also be used to pay utilities, medical expenses, property taxes, buy groceries, cover transportation costs to get to and from work, and much more. A law firm can help you determine whether or not your case has a chance at succeeding when you seek lawsuit loans.
I Lost the Case, What Happens Next With My Law Firm?
There is always the chance that your lawsuit will not be successful. It can be thrown out by the judge, the judge can rule in the defendant’s favor, or the settlement might come in at a value less than you were approved for by the lender of the cash advance. Should this happen, you likely want to know if you are responsible for repaying the entire amount of the loan.
The answer to your question all depends on how the loan agreement was structured. The agreement must be signed prior to receiving the settlement proceeds (cash) and will outline how the loan is to be repaid, the interest rate, how fees are calculated, how the funding fee will accrue, and how either of the previously mentioned scenarios will be handled.
Why You Should Obtain Pre Settlement Lawsuit Loans
There are quite a few reasons why you should obtain pre settlement lawsuit loans from a fund company with the help of a law firm. The reasons why you should obtain a pre settlement loan include the following:
- These loans can be obtained in a fairly quick amount of time. This process is much quicker than that of applying for a line of credit or a personal loan.
- In most cases, you do not need good credit in order to obtain a settlement loan from settlement loan companies. No credit check will be conducted when applying for a personal injury settlement loan.
- You can use the cash advance from settlement loan companies to pay for just about anything, including your daily living expenses.
- A settlement loan from settlement loan companies provides you with more time for your attorney to negotiate a better settlement with insurance companies. When you obtain settlement funds from funding companies, you will be able to pay the bills without worry and very little interest.
Myths About Lawsuit Settlement Loans
As one might expect, there are a myriad of myths and misconceptions out there about litigation financing, a cash advance, a settlement advance, and a lawsuit loan company for plaintiffs. Let’s explore those myths and dispel them in this section.
Lawsuit Cash Advances Are Illegal
This cannot be further from the truth. These types of interest loans are completely legal. The decision of the lender to provide you with a cash advance to cover court costs, utilities, medical expenses, and other items while you wait for the lawsuits to settle does not mean the lender is taking sides. It is simply providing you with cash following a slip and fall injury or another personal injury event so you can continue to live within your means.
Funding for Lawsuits Can Only be Used for Certain Expenses
You are not held to certain expenses for the cash you receive in a pre settlement funding loan. In fact, you can use the cash on anything you would like. If you don’t want to pay your expenses and instead go on a trip, you can do so (although we don’t recommend this). You can buy groceries, pay the rent, pay your mortgage, pay medical bills, and much more.
The Process to Obtain Litigation Cash from Lawsuit Loan Companies is Challenging
The process to obtain litigation cash via a lawsuit funding company is actually quite easy. All you need to do is contact Inheritance Advanced in West Palm Beach, Florida, and we can start the application process. We have clients all over the country who use us for pre settlement funding.
I Will End Up in Debt if I Lose the Case Because of Interest Rates
No, you will not wind up in debt if you happen to lose the case and have settlement loans in your name. If you don’t bring home any compensation from the lawsuit, or because of a failed settlement attempt, you will not go into debt by paying us back for the loan we issued. We take a risk approving your loan based on the factors about the case mentioned earlier. You only repay the loan if you win or you obtain a settlement. This means that your bank account will not take a hit if you have a lawsuit settlement loan in your name.
Frequently Asked Questions About a Loan on a Lawsuit
Review the answers to some of our frequently asked questions about legal funding, lawsuit cash advance, and other money issues related to pending lawsuits below.
Can I obtain a second advance on my lawsuit?
The answer to this question is mathematical. If the original loan does not surpass 10-20 percent of the estimated value of your case, then you should be able to obtain a second advance on the same lawsuit. For the most part, the interest rates will remain the same. Since most personal injury cases take anywhere from one to three years to settle, many people take multiple advances on their cases in order to continue to pay the expenses and keep their credit in a good position.
I was denied for a second advance, can I apply elsewhere?
If you applied for and were denied a second advance on lawsuit settlements, you can apply for additional money from another company. If you received funding from a company other than Inheritance Advanced, apply for additional funding from us so we can help your situation.
For instance, if the inherited house was originally purchased in California in 1950 for $20,000 and it’s now worth 3million, you may be responsible for paying taxes on the difference between $20,000 and the $3million that you sell it for. At this point, everything is just speculative since no changes have been signed into law. You might not have to pay taxes if you sell the home as your state law dictates or if you sell it within the first year of owning it. You should speak with an attorney to understand how the law applies to your situation.
How long will I have to wait for funding to be approved or denied?
At Inheritance Advanced, we take pride in reaching a decision about your application in a quick manner. You should hear from a member of our team within 48 hours about the decision from our lender on your case. We will explain the interest rates you can expect for the loan.
Do states offer protections for consumers who obtain pre settlement funding?
Yes, there are states that provide protection for consumers who obtain these types of loans from a pre settlement lender. States that have the toughest protections include Vermont, Oklahoma, Maine, and Ohio. There are legal protections in Indiana but the state also places limitations on the funds that can be made available for consumers. Attorneys can make sure you are not being taken advantage of when it comes to the interest on the loan.
Do I need a lawyer too?
It’s always a good idea to have a lawyer work with you when seeking damages from a lawsuit. The lawyer will play an important role in helping you obtain legal funding while you wait for the court issue to settle. Attorneys help in various aspects of life, can answer your questions, and determine if your case has a chance to succeed.
The Bottom Line
Still not sure if you should use a pre settlement fund company for a loan while a lawsuit is pending? Since the application does not impact your credit score, does not depend on good credit, and doesn’t have to be repaid if you do not win your case, the overwhelming answer is yes. You should work with a lending company to obtain cash after suffering a brain injury or other injury that impacts your life so you don’t accrue late fees or go into debt trying to pay the bills while waiting for the lawsuit to settle.
Call Inheritance Advanced for Pre Settlement Funding Today
Have you filed a claim against someone who injured you in an accident? Do you need the funds from the lawsuit or settlement today? If so, Inheritance Advanced can help you. Based in West Palm Beach, Florida, our experienced team of advisors serves clients throughout the country.
Take matters into your own hands and apply for pre settlement funds today. Call our office using our nationwide phone number at (866) 510-2576, or message our email address, and one of our experienced advisors can help guide you through the application process for insurance proceeds, lawsuit funding, and answer all of your questions. We also communicate with clients via text messages.
