Aspects Of A Case That Must Be Demonstrated To Qualify For Lawsuit Loans
We have to remember that every case that’s brought before a court is unique and may require different legal steps to be taken to secure a win. Depending on the case, it may be required to obtain evidence such as financial receipts, photos, or even medical records in order to win the case.
At Rapid Lawsuit Funding, we understand that every lawsuit is different. However, there are certain requirements that must be met by all plaintiffs who wish to apply for pre-settlement funding. Plaintiffs who are curious about applying for a lawsuit loan at RapidLawsuitFunding.com need to know what must be demonstrated to qualify for lawsuit loans. By looking through the information in this post, you will know exactly what you need to show to the lawsuit loan providers in order to be approved for a loan.
A Suitable Case For Lawsuit Loan Contention Must Show Liability
A lot must be accomplished in order to win a trial. Successful candidates for lawsuit loans also must clearly show liability. If you are unfamiliar with the term, Liability is defined as the state of being responsible for something, especially by law. However, what you are trying to show when applying for pre-settlement funding (and while engaging in a trail) is that the person is liable is not you, but the defendant.
The defendant must see the proof of the injuries and harm you, the plaintiff, have suffered through their fault.
If you can clearly show to the pre-settlement funding company that you are not liable (which you most likely have already done with your solicitor), then you have high potential for qualifying for Lawsuit Loans.
It’s Easier to Prove Liability In Some Cases Than Others
In some lawsuits, it’s easier to prove liability than in others. For instance, if you happen to be involved in a car accident in which you are the victim of an injury because of the defendant rear-ending your vehicle, the inherent liability is very clear. However, if you are filing a lawsuit of premise liability against a defendant (as an example, if you were to slip and injure yourself on their property), it would be much more difficult to prove them liable without further evidence. You would need to gather documentation to prove their negligence such as incident report, witness statements, security footage, etc.
The Defendant Must Be Reasonably Insured
If you are at all familiar with lawsuit loan companies, you should know that they do not operate the same way as banks or credit unions. In fact, lawsuit loan companies are more similar to financial investors who are purchasing a portion of your future settlement from you in advance of receiving it. The good news about an arrangement like this is that if you don’t win, you don’t have to pay back your loan!
That said, lawsuit loan companies are only able to give you an advance on your settlement under the clear assumption that the maximum case value possible is found with the defendant’s insurance coverage. Thankfully, this information isn’t something that you as the plaintiff have to provide as they will simply ask your solicitor about the insurance policy limits of the defendant.
A Reasonable Assessment Of Damages Must Be Found
For those who may not be aware of it, the settlement amount that a plaintiff receives once the judgment has been reached depends entirely on the severity of the damages they have suffered. A lawsuit loan company makes a reasonable assessment the determine the severity of the damages the plaintiff has (or will) suffer in order to get an accurate number of expected settlement money.
Damages are assessed within three different categories: compensatory damages, general damages, and punitive damages.
What Are Compensatory Damages
Compensatory Damages are awarded to plaintiffs who experienced a loss due to the negligence of another party. These damages are easily identifiable and can include things such as property damage, lost income due, and even any medical costs that were incurred because of the injury caused by misconduct originating from the defendant.
Compensatory Damages can usually be calculated to a fairly definitive degree due to the documentation that relates to the loss/injury (i.e. medical reports, pay stubs, damage assessments, etc.)
What Are General Damages
General Damages are much harder to calculate than compensatory damages. General Damages implies a certain amount of money the defendant must pay to the plaintiff for injuries suffered but when no exact dollar value can be calculated. Injuries include emotional distress, future lost income due to injury, ability to return to a place of gainful employment, physical distress, trauma, etc. Although litigants are unable to give a completely accurate projection of the financial settlement plaintiffs will receive through General Damages, an approximate amount is usually calculated.
What Are Punitive Damages
Punitive Damages are damages assessed to punish for their behavior and to deter them from engaging in similar conduct in the future. Punitive Damages are often awarded when compensatory damages aren’t enough. Their purpose is not primarily to compensate the plaintiff but they do receive a part or all of the award.
Since the amount awarded in punitive damages far exceeds the plaintiff’s injuries, these are awarded in special cases only.
Overall Competence Of The Plaintiff And Their Legal Team
The way a plaintiff communicates when applying for a lawsuit loan can go a long way in deciding on whether or not they will receive pre-settlement funding. The conduct and communication between the lawsuit loan company and the plaintiff (either through voice calls or email) are one of the factors that impact the company’s decision regarding whether you’re a safe investment or not.
After all, they’re not just investing in your future settlement, they’re investing in your ability to receive a settlement. If you demonstrate poor communication skills and use bad language, it can have a very negative effect on your application.
Competence Of The Plaintiff’s Legal Team Is Assessed
Lawsuit loan companies need to see a professional presentation from your legal team as well in order to qualify for a settlement loan. If the plaintiff’s solicitor can not communicate well, is disorganized, or doesn’t have a good track record in representing similar cases, it will be reflected in their performance in a courtroom. If they cannot perform well in a courtroom, a judgment may not be found in favor of the plaintiff and therefore, your case would not be a good investment for a litigation funding company.
The Type Of Funding You Require
The type of funding you are hoping to get will also have an impact on whether or not you qualify for a lawsuit loan. The two types of settlement funding that are available to plaintiffs are Pre-Settlement Funding (a loan given before a successful judgment has been reached), and Post-Settlement Funding (a loan given after a successful judgement has been reached). Lawsuit loan companies tend to look more favorably upon Post-Settlement Funding. If you’d like more information on these types of settlement loans, you might want to take a look at our article on How Lawsuit Loan Companies Evaluate Client Applications.
Find Out If You Qualify For Settlement Funding Right Now!
Now that you know exactly what needs to be demonstrated when you apply for a lawsuit loan, what’s stopping you from applying? Lawsuit loans are one of the quickest and simplest ways in which plaintiffs can get the financial relief they need amidst the stress of being involved in a lawsuit. The bottom line is, if you have been wronged by a defendant and the law is on your side, you are the perfect candidate for a settlement loan. Apply Today With Rapid Lawsuit Funding and experience the difference it can make in your life!