18-Feb

What’s The Difference Between Pre-Settlement, Post-Settlement, And Settled Case Funding

When it comes to case funding, there are three major types: Pre-settlement, post-settlement, and settled case funding. Here is the difference between these for your to peruse and learn from. Each case is different, but they also all take similar paths as the court system works about the same way no matter what type of case is taken in front of them. Here we have the differences between the three types of lawsuit loans that you can get at different places in the lawsuit timeline. Each lawsuit being different, each of these can be the best option depending on what is on the table, how much should be awarded, and how much is needed on a loan and when.
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What Is A Pre-Settlement Lawsuit Loan?

A pre-settlement lawsuit loan is one that happens before the case is settled in court or in litigation. This means that there is a lot more risk to this type of loan as the has been no decision made as to who wins the case. The person requesting a lawsuit loan in this situation has a bigger burden to prove that they will win the case and will be getting a large sum from the win. This means that precedent and proof of what they are bringing to court have to be given to the lawsuit loan company. This means that there is usually a higher risk to these loans and thus the percentage of fees will be higher. While a case that is already settled gives clear numbers in terms of what the pay-out will be, these do not and make lawsuit loan companies more nervous. Of course, some will still loan money given that they will be paid back with interest after the fact. They will sometimes ask for a credit check to make sure that the person they are lending to is reliable. Here there are more risks for all involved and it makes it harder to get the loan.

What Is A Post-Settlement Lawsuit Loan?

A post-settlement lawsuit loan carries less risk for all involved as the case has been settled and a decision has been made. It’s now only a risk based on the amount the winner will get and how good they are at repaying loans. This kind of loan also usually comes from a lawsuit loan company, but they are the kind that take less time to get approved and can pull in a lot more money as they are done based on a won case. Getting these does mean giving a lot of information about the case winning and about the person requesting the loan, including their credit status and their credit score. These loans are still loans and still require to get paid, but their lower risk mean that they can have a lower percentage of interest attached to them as the money is going to be coming, it’s simply not certain how much that amount will be. The amount lent will vary on a few different factors including what type of case was just won, what previous winning plaintiffs have been given as a settlement amount, and how much the winner can be trusted to repay once they get their settlement and they get to have their income back. There are still risks here, but a lot less than with pre-settlement loans.

What Is A Settled Case Lawsuit Loan?

A settled lawsuit loan is done against a case win with an established amount being paid out to the winner. The issue here is usually that the winner needs the money before the payment is scheduled to arrive or that the payment is not yet scheduled to arrive. This is the lowest risk situation of the three here as there is a win AND there is an amount set in stone that will get paid. Here the winner can get the full amount as a loan or a partial amount. The easiest to repay is the latter as it allows a bit of money left over from the winnings to be used later or to cover the interests from the loan. Being that it has the lowest risk, loans from settled cases usual carry lower interest rate as the lawsuit loan company will feel safer about getting their money back after the everything is over. This one is sometimes not all that needed as the payment can come very quickly, but in the event that the payment date is still unknown or is known to be too far to wait and there are bills to pay and other living costs, a lawsuit loan on the settlement can be a great option.

What Does The Difference Between These Really Mean?

What is really means in practical terms is that each of these types of loans carries different levels of risk with the pre-settlement loans being the most risky as the win is not assured and thus the money may not be won. The lower risk is carried by the settled case loan as this case is already won and there is an amount that has been agreed or ordered to be paid, so there is a for sure type of situation. Of course, there is a higher chance of needing the loan early on when a case is taking a long time or the damage was high. When someone has gotten seriously hurt, the amount of medical bills can come up really high, even before a lawsuit gets really started, so needs decide more what type of loan or at what time a loan is requested. This is usually all done while things are not going great and people are in serious needs of help. That means that each person needs to talk to their lawyer and decide which is the best of these for them based on the difference, the cost, and the risks.
The difference between pre-settlement, post-settlement, and settled case funding is basically when these happen and the level of risk they each carry. Deciding at which point to get a lawsuit loan is something that may not be entirely decided by those who are getting the loan as their needs and accumulating bills may make the decision for them. Here the decision comes when the money is needed, often when there is not much of a choice anymore. The best way to decide is to weigh the pros and cons of each point of the process for getting a loan and then decide if a loan will really help. Sometimes, a loan is really needed right at the start, so then the decision basically makes itself, the main part left here is to decide how much to ask for.

A Great Place To Get More Lawsuit Loan Help

When more help is needed, a great place to turn to is Delta Settlement Funding.