Learn The Secrets Of How Lawsuit Loan Companies Evaluate Client Applications
There is a variety of different factors that go into evaluating a plaintiff’s application for a lawsuit loan. What needs to be considered when applying for pre-settlement funding above everything else is that every lawsuit is different.
Not just regarding the types of lawsuits that are going to trial, but also in the quality of the plaintiffs, defendants, and solicitors involved. Also, the teams at some of the best lawsuit loan companies have to evaluate their decisions based on the degree of liability and the amount of damage that could be claimed.
As intimidating as all this might seem to a plaintiff, it is actually a very simple concept to grasp if you have someone to break it all down for you – which is exactly where Rapid Lawsuit Funding comes into the picture. Once you find out how lawsuit loan companies evaluate client applications, you can apply for the settlement funding you need at RapidLawsuitFunding.com! Before you begin filling out your online forms to attain a lawsuit loan, it is definitely a good idea to be prepared for the types of criteria that will be looked at when assessing a plaintiff’s request.
The Type Of Case Is A Driving Factor In Lawsuit Loan Application Assessment
The type of case which the plaintiff brings to the trial is perhaps the most important factor in the loan application assessment process. The type of case in a lawsuit loan assessment is generally the best watermark to measure probable liability. For instance, different cases presented before a judge can include traffic accidents leading to injury, workplace injuries, premises negligence, etc.
The type of case is important because liability can be assumed due to the nature of the specific lawsuit. For example, if you were involved in an escalator accident that resulted in bodily harm (we’re not joking – injuries of this nature happen to over 17,000 people in the United States every year), there are very few circumstances in which the plaintiff could be liable for that injury since the function of an elevator or escalator is essentially out of their control.
However, if the plaintiff was involved in a workplace injury lawsuit claiming personal harm from repetitive motion or faulty ergonomic practices, it would be harder (but not impossible) to prove.
When Applying For Lawsuit Funding All Involved Parties Will Be Assessed
Because the success of a lawsuit is ultimately determined based on the quality of the parties involved, each player involved will fall under the scrutinizing eye of a lawsuit loan assessor before a loan is given. This means that not only will the plaintiff be looked at, but so will their solicitor and the defendant.
Why We Assess The Plaintiff
Firstly, the most scrutiny will be given to the actual plaintiff. Lawsuit loan companies want to make sure they are making a good investment in awarding a plaintiff a loan based on their future winnings. After all, plaintiffs will not be required to pay back a lawsuit loan if they lose their case. That said, the plaintiffs will be looked at to see if they have a criminal record or pending lawsuits against them, and their overall quality of character will be examined as well.
All of this can play a factor in the lawsuit.
Why We Assess The Plaintiff’s Lawyer
Settlement loan companies like Rapid Lawsuit Funding will look into the history of the client’s solicitor in order to measure their competency to represent the plaintiff in the lawsuit. This examination mainly involves ensuring their lawyer has not broken bar guidelines in the past, does not have complaints filed against them, and has had experience in trying similar lawsuits.
Why We Assess The Defendant
Lastly, we will also take a look at the defendant. The defendant is primarily assessed to ensure that they are properly insured and their policy limits are met – meaning they have the ability to pay should the verdict be ruled against them.
Case Documentation May Be Required
In some circumstances, the lawsuit loan company will also require some supporting documentation and evidence involved with the case. Plaintiffs shouldn’t worry about this aspect of applying for pre-settlement funding though as lawsuit loan companies will go through their solicitor to obtain these documents.
They are needed to get a better sense of where the liability falls (who is at fault), as well as the damage that will come into play when deciding how much money to loan a plaintiff in advance of their settlement.
Where Damages Come Into Play When Evaluating Claims
Estimating damages is a very important step when evaluating a lawsuit loan application because the estimated damages will dictate how much money can be loaned to a plaintiff. The higher the damage, the more money the lawsuit loan company will feel comfortable investing in the plaintiff’s settlement (loaning to the plaintiff). The total financial amount of the estimated damage falls under the three different categories of damages recognized by a court of law:
- General Damages
- Compensatory Damages
- Punitive Damages
If you would like to familiarize yourself with how each of these types of damages are legally defined, please feel free to take a look at our blog entry regarding Aspects Of A Case That Must Be Demonstrated To Qualify For Lawsuit Loans.
What Type Of Settlement Funding Is The Client Looking To Receive?
While pre-settlement funding is becoming more and more popular these days, many plaintiffs are not aware that there is another type of lawsuit loan which they can apply for: post-settlement funding.
While pre-settlement funding involves applying for a loan based on the estimated settlement amount you will be receiving after judgment has been reached, post-settlement funding is applied for after judgment has been found in the plaintiff’s favor.
It may seem like an odd concept to apply for a lawsuit loan after a settlement has been reached in your favor, but there is actually a very good reason for it.
Why Plaintiffs Apply For Post-Settlement Funding
Plaintiffs sometimes apply for post-settlement funding because unfortunately, it can take quite a while from the day the verdict has been reached to the day you finally see the financial benefits. If you are a successful plaintiff, don’t be surprised if it takes months for you to see any settlement money in your bank account.
In the meantime, the bills will continue to pile up! Because of this, plaintiffs sometimes apply for post-settlement lawsuit loans. When evaluating lawsuit loan applications, post-settlement loans are almost always 100% approved.
Does The Plaintiff Have Any Previous Lawsuit Loans
Most lawsuit loan companies will also look to see if the applicant has any history of being funded relating either to a past case or even the current one.
It is important that you don’t keep this information to yourself when applying. If you have previously applied for a lawsuit loan, that information can be easily uncovered when speaking with your solicitor, and providing false information will not work in your favor. Any previous experience dealing with settlement funding companies will always work in the plaintiff’s favor – as it tells the current lawsuit loan company that you are well aware of the practices involved.
It’s not uncommon to apply for a lawsuit loan with multiple companies regarding the same case, but this will have an effect on the amount you receive from these companies. Always expect a larger loan amount from the first company that approves you, as the consecutive settlement funding companies will be investing in a smaller amount of your estimated settlement. Some lawsuit funding companies might be able to offer legal funding refinancing, where they will actually buy out your previous loan.
Know The Criteria And Feel Secure In Applying
After reading this blog, you should now be well aware of the different criteria that will be looked at when evaluating your application for a lawsuit loan. Plaintiffs should always be mindful of the fact that lawsuit loans are not technically loans – they’re investments in your future settlement.
Because companies know they’re only going to be paid back if your lawsuit is successful, they need to be sure the plaintiff and the solicitor are competent and have the necessary experience in dealing with similar cases.
Ifyou are a plaintiff who is interested in receiving settlement financing through RapidLawsuitFunding.com, we invite you to Click Here and Apply!