Most Common Questions Regarding Lawsuit Loans And Pre-Settlement Funding
When it comes to lawsuit loans and pre-settlement funding, there are many questions each person will have and a lot of them are common between all applicants. These questions are found here so that you do not need to go looking all over the place for your answers. The research has already been done and you can trust that the answers here are some of the best you can find. You are of course welcome to do your own research using our most commonly asked questions about lawsuit loans and pre-settlement funding as a starting point. So what do people ask the most often and what are they needed help with the most when looking into these types of loans? Find the answers below!
What Is The Difference Between A Lawsuit Loan And Pre-Settlement Funding?
Lawsuit loans are meant to help with the cost of the lawsuit itself and the costs of life during the lawsuit if you are unable to provide for yourself. Lawsuit loans can be obtained at any point during a lawsuit. Pre-settlement funding usually happens after a lawsuit has been underway for while and a settlement is likely to be reach because of precedence or history or when you have a litigation or mediation instead of a lawsuit that should lead to a large sum in settlement money. This second option is one that carries less risks and is easy to get funding based on. The pre-settlement funding is one where there is a better known set of variables that should lead to a monetary settlement while a lawsuit loan has more unknown variables at play.
Is There A Difference Between Lawsuit Loans And Regular Loans?
When getting a regular loan, say from the bank, you have to show collateral and that you will be able to pay them back based on your income and assets, with lawsuit loans the collateral if you will is your lawsuit and its chances of winning. Lawsuit loans are specifically designed to take into consideration the chances of winning your case, what type of case you have, and are not entirely based on your income and assets. These loans are the best option when needing money during a lawsuit.
Can I Get A Lawsuit Loan Or Pre-Settlement Funding Without A Lawyer
While it is not impossible to do so, quite a few lawsuit loan companies will not approve applicants for either types of funding who do not have a lawyer representing them. Having a lawyer does come with extra costs, but it also can help you put together a better can and use resources that are harder to get when you do not have a lawyer. The chances of winning are usually more on your side when you have a great lawyer and hiring one shows you believe in your case and want to win no matter what. This shows to lawsuit loan companies that you are serious about your situation and your lawsuit, thus giving them more confidence in your case and potential to win and win big.
Does Having Bad Credit Prevent Me From Getting These Types Of Loans/Funding?
Depending on the lawsuit and stage or lawsuit, you may not even need to divulge your credit score or get a credit check. However, it may come into play for lawsuit loans where things are more risky. If you have a proven case with plenty of precedent where the plaintiff has won large amounts of money, you can definitely be approved for either a loan or a pre-settlement fund without a good credit score. As mentioned above, lawsuit loans and pre-settlement funding do not work like regular loans from a bank and may not require your credit score like a bank loan would.
How Much Money Can I Expect To Receive?
This is a tough question as there is so much changing from one case to the other. Here the calculation of how much is going to be awarded will depend on how much is requested, how much is usually awarded in similar cases, and what are the chances of winning your particular case. There is almost a science behind these and each lawsuit loan companies will have their own minimum and maximum amounts they are ready to loan or fund. This can wary from anywhere in the hundreds of dollars to several thousands of dollars. In rare cases, it could be even more, but that kind of amount should never be expected. Requesting the minimum needed is a good strategy in case the case is lost and the amount needs to be paid back out of pocket. In general, the loan companies offer about 10% of your expected win as a loan.
How Is Loan Decision Made?
The lawsuit loan company or the pre-settlement funding company will take the information provided about the question and study it closely. They will look at previous similar cases, precedent, and if they were won by the plaintiffs as well as how much was awarded to the winners, they will take a look at your specific situation, ask questions of your lawyer and yourself, and will then gather all the information they can to make a good decision. In the case of pre-settlement funding, they will take the extra information to come out of the court case and compare with other similar cases and go from there with information on how much others have won in those cases. It almost all hinges on precedent and what others have received in similar cases as well as how strong your own case is against the defendant(s). Other factors will also be considered like how much your medicals bills are so far, how much you have lost in wages from not being able to work, your insurance and the defendant’s insurance in cases where insurance is at play, and has there already been a loan or funding done for your case.
Is It Possible To Get A Second Loan Or Advance?
Yes, but that is much more risky and has a lesser chance of getting approved.
What Kind Of Fees Are Involved In Applying?
This will depend on each lawsuit loan and pre-settlement funding company. This means that some have application fees while some do not, some have processing fees while some do not. The one thing they all have in common, are a percentage of interest rate, which means that they set a repayment pan usually with clearly indicated percentage rate for interest on the loan. This is where things can get really expensive, so checking these rates from company to the other is quite important, but you must also check how those rates are applied as some may have a situation where if you do not win, you do not owe. That is something that is fairly rare, but very practical in the eventuality that you may lose your case. The companies who offer those types of no risk loans may have higher rates on the winning repayments or have other ways of charging you, so check all the details of the loans so that you are fully aware of all the fees, costs, and interest rates. In any doubt, getting your lawyer to look it all over is a great way to make sure you get the best deal on your money.
Can My Lawyer Or Their Office Provide Me With The Loan?
No. They cannot do this as it would be unethical and can cause conflicts of interest.
In short, the important things to know here are that you will need to have a lawyer to do this, you can use part of your loan or funding to pay your lawyer, you should make sure you understand the contract you are entering into completely, you need to make sure you understand how much will need to be repaid and when before signing up for the loan, and you cannot get this from your lawyer directly, but they can help you in getting this. Getting a good loan means that you will be getting about 10% of what you are expected to receive from your winning of the lawsuit, so this can be a bit on the small side, but it’s meant to help pay bills, not to make a profit. A good lawsuit loan or pre-settlement funding is something that is obtained from a reliable loan company and should be done with all the information you can get before signing for it.
So, Where Do I Get Started?
You should get started right here, at Delta Settlement Funding.