What Does A Lawsuit Loan Company Ask Your Lawyer?
There are many lawsuit loan companies with different missions and principles as well as different types of loans. To select the right lawsuit loan company, you should be aware of what information they may ask for approval. Some information is required and you should not feel suspicious about providing the answer. If there are some unnecessary questions that you don’t feel comfortable sharing, you should know that. This guide should help.
What Information Is Needed For A No-Risk Lawsuit Loan
Post-settlement loans are often considered no-risk loans as there a settlement has already been reached but the money may have not arrived yet. That means you on the case and have a certain amount coming your way.
Lawsuit loan companies are more likely to lend money in these cases. But this isn’t the only no-risk type of loan. A no-risk loan is also possible in cases when the lawsuit loan company determines that the plaintiff has very high chances of winning the case. A no-risk loan can also be a loan that carries no risk for the receiver as they only repay the loan if they win the case. If they lose it, they’re not obliged to pay back the amount received.
These loans are also awarded to plaintiffs with cases that are likely to win based on previous similar cases.
No-risk loans require very little information outside of what the lawsuit is and whether your lawyer expects a win based on precedent and history similar cases. This means you won’t be asked to reveal much about yourself.
The information requested is, therefore, very basic: What is the lawsuit about? What are the precedents in the field? How likely is the case to be won?
What Information Is Needed For A Pre-Settlement Lawsuit Loan
Pre-settlement loans are a bit more complex as they have yet to be settled and thus come with more risks. Lawsuit loan companies loan money in these types of situations because they believe that either the case is basically a sure win, or they know that the person taking out the loan will be able to repay them even if they do not win.
This means that these types of loans are riskier and the person taking them understands those risks. The application process requires a bit more information when compared to a no-risk loan.
The information needed includes that same information as above and possibly may include the following: Credit score or credit check approval; how much the person requesting the loan makes per year; how much debt they already have; references for good credit.
What Information Is Needed For A Lawsuit Loan Against An Insurance Settlement
These types ofloans against insurance settlements are usually easier to get as there is already a figure that’s been agreed to be paid to the victim so it’s easy to know how much money will be coming in and when.
Getting a loan like this is fairly simple and gives the person a chance to keep up with their bills until the insurance hands them the check. For larger sums, the checks can take a long while before they finally arrive. The good part is that cases aren’t always brought to court so lawyer fees can be pretty low.
While the money is coming for sure, the question of when remains. People face all sorts of bills while waiting for their check so a loan can come in very handy.
The information that the lawsuit loan company can require here includes: The amount of money that will be coming; a time when it is expected to arrive; whether the amount will be paid in installments; signing a contract in which you promise to pay back the money.
They may also require a credit check and some other information.
How To Decide What Information To Provide?
This is where you can find out whether you want to do business with a specific lawsuit loan company. Consider what information they are asking for and if you are comfortable providing it.
Case information may be limited to what is useful to them and what you are comfortable with. However, some of the information requested is crucial to get approved for the loan, so if more than one lawsuit loan company requests that same information and you are not comfortable giving it out, refer to your lawyer and see what they think. They may agree with the loan companies and advise you to provide the requested information.
Your lawyer may even suggest that you don’t provide information you are not comfortable giving out, so be sure to ask for their guidance. You are already paying them, so make the most of their knowledge and experience.
It’s not excluded that a company may ask for too much information and this should be a red flag. If that’s the case, you should continue looking. Your lawyer should be able to help navigate this from start to finish.
When it comes to what kind of information a lawsuit loan company may request, there are as many answers as there are lawsuit loan companies. In general, they mostly want to know the type of lawsuit, the sum expected in the settlement, whether’s the amount has already been approved and if not, what kind of credit record does the requester have.
They are all pretty much routine questions although to you, it might feel a bit invasive and uncomfortable. Overall, a good lawyer can help navigate the process and decide which piece of information to give and which to withhold. They can also help stir you in the right direction when it comes to finding a better lawsuit loan company.
Where To Start?
A great place to start and get your information is with Delta Settlement Funding.