Pre-settlement loans are not traditional loans. They are cash advances on your expected settlement amount in a case that is likely to win. Therefore, they can be regarded as investments in your cases.
Plaintiffs who are thinking about filing a lawsuit or are in the middle of a legal battle that drained their funds often resort to pre-settlement funding to help them get through it all.
The process is very simple. You, the plaintiff, apply for a pre-settlement loan, and if your case is strong and deemed likely to be settled in your favor, you will be approved for a loan.
If you lose your case, you are not required to pay the money back. That is how pre-settlement funding essentially works.
However, plaintiffs often wonder whether it’s possible to get more than one pre-settlement loan?
The answer is, it depends on the case. In some cases, it is possible to get a second loan from the same lawsuit loan company or another.
When Can You Get a Second Loan?
Not all lawsuits settle quickly and easily. Some may be resolved promptly but others can take years to be settled. As you wait for your case to be resolved, you may face various expenses that you are unable to cover until your settlement money arrives. Especially in the case when a plaintiff is prevented from going back to work and cannot provide for their family. This creates unnecessary pressure and puts you under more stress. Additionally, it prevents you from continuing your fight because you can’t afford the legal fees.
If your case is taking longer than you initially expected and the first loan you took has already been spent, you may talk to the lawsuit loan company to consider a second loan.
However, you are not obliged to turn to the same company where you got your first loan from. You are free to seek another lawsuit loan company for the second loan if you prefer. Whatever the case is, you must be completely honest about the loan you already received. The lawsuit loan company will then consider the existing loan as well as all important factors regarding your case and decide whether to approve another loan or not.
In other words, you will only know whether you qualify for a second loan or not once you apply. You will probably receive an answer promptly.
How Much Can You Get?
When taking a loan, the general rule is that plaintiffs should take the smallest amount that will help them cover their bills and continue their legal fight. Do not expect an exorbitant amount of money from a lawsuit loan. A cash advance or a pre-settlement loan is, therefore, typically up to 20% of the expected settlement amount.
Most lawsuit loan companies will consider approving you for a second or even third loan but as long as the amount is under 20% of the estimated lawsuit’s value. So whether or not you will be approved for a second or even a third loan depends on the amount you already received, among other factors. If you had borrowed a minimum amount in your first loan, you might be eligible for a second pre-settlement loan.
This 20% limit serves to protect you. If you lose your case, you won’t be required to return anything. However, if you win your case, you will be relieved knowing that you borrowed a minimum amount only and will easily pay it back plus interest. Once you pay this back, you will still likely have a sizable portion of the settlement money left to use as you please.
Tip: You are under no obligation to accept the amount a lawsuit loan company offers you as a pre-settlement loan. If they offer you more than you need, you are free to refuse and take a reduced amount. This is a smart decision for many reasons, including the fact it increases your chances of getting a second loan. Also, it makes repaying the loan (if you win) much easier.
Talk To Your Attorney First
Before you go to the lawsuit loan company to seek another loan, you must sit down with your lawyer and carefully discuss this option first. This decision may not be good for your situation so your lawyer will advise you on the right thing to do. They will help you make a decision that will benefit you.
It is important not to make a rash decision that may affect you later because unfortunately, many legal funding companies are out there to scam you and trick you into signing unfavorable contracts. You could use help in identifying these predatory companies and avoiding them.
The first step to applying for a second loan is, therefore, discussing it with your legal representation. If they agree that this is the right step for you, you will proceed to contact your lawsuit loan company and apply for a second loan or start researching other companies and their options.
Your lawyer may also help you in finding a reliable, trusted lawsuit loan company that believes in your case and is ready to assist you.
Why Rapid Lawsuit Funding?
A lawsuit is stressful as it is, without the financial worries that plague most plaintiffs. Rapid Lawsuit Funding provides you with an option to relieve the pressure and continue fighting for justice stress-free. A pre-settlement loan allows you to focus on your case only instead of worrying about your bills.
Rapid Lawsuit Funding all types of cases so regardless of the type of accident you were in, you are welcome to apply for a loan with us. We carefully analyze each case to determine how likely it is to win and approve our loans based on that.
The best part is that you have nothing to lose! If you lose your case, you’re not required to pay us back anything. You will only repay the loan with interest if you win your case.
Apply today and let Rapid Lawsuit Funding help you win your case.