Pre-Settlement Lawsuit Loan: What is it and How Does it Work?

Lawsuits take time to settle even if you have a strong case and the best attorney in town.  It can take up to several years to complete a personal injury case.  During the time you have to wait, you will also have to deal with financial obligations like paying your bills and providing for your family.  With a pre-settlement lawsuit loan, you will have immediate cash to meet these needs.

Financial Support from a Pre-settlement Lawsuit Loan

A pre-settlement lawsuit loan “is a cash advance on an expected settlement or verdict in a pending legal case”, as defined by AZ Big Media.  They do not consider it as a loan since you don’t need to pay it back when you lose your case.  A financing or lending agency will evaluate your legal claim and lend you money equivalent to the estimated value of your application.

Pre-settlement lawsuit loans are also called pre-settlement funding, lawsuit advance, settlement loans, and lawsuit funding.  Its primary goal is to provide money for a plaintiff before a case is settled.

Did you know that Delta Lawsuit Loans is a company offering pre- settlement loans and can get you cash fast? If interested you can call 786- 741-8003 and get the cash that you need while waiting for your case to settle.

What is a Pre-settlement Lawsuit Loan Used For?

Expenses mount during the legal process of a personal injury case because the plaintiff may not be able to go back to work.  It will take time before the money arrives.  In the meantime, a pre-settlement loan can cover expenses like:

  • Medical bills
  • Rehabilitation expenses
  • Groceries
  • Mortgage or rent
  • Utilities
  • Loan payments that are due
  • Automotive expenses
  • Any other necessary or basic living expenses

A settlement advance is a temporary solution to ease the financial burden of a plaintiff and it provides the attorney the time needed to focus on the case to be able to maximize the value of the claim.  

How does a Pre-settlement Lawsuit Loan Work?

If you need money immediately to cover medical bills right after a personal injury or loss due to someone else’s negligence, you can apply for a pre-settlement loan.

The first thing you have to do is to file a lawsuit.  This will give you eligibility for a pre-settlement advance from a lending agency. The lending company will then contact your attorney to get information about your lawsuit and evaluate it.  The documentation provided by your lawyer is very crucial because the underwriters will evaluate the strength of your case based on what is stated on the documents.

Since the lawsuit loan protects you even if you lose the case because you don’t have to pay back the loan, the lending agency will carefully examine your claim.  This will give them the security that they will not suffer from a probable loss.  

After your case has been reviewed, the lending company will contact you and let you know if your pre-settlement lawsuit loan has been approved or not.  

If your pre-settlement loan is approved, the lending company will send you the money by check, money order, or direct deposit.  Usually, you will not get the whole amount of the loan since the lawyer will take his fee which is typically ⅓ of the total amount of the loan.  

The lawsuit cash advance will immediately be given to you within 24 to 48 hours after approval.  The lending company does not have any spending restrictions and control over how you will spend the lawsuit funding.

Is a Pre-settlement Lawsuit Loan the Best Option?

The lawsuit loan will be very beneficial for you if you cannot afford basic living expenses like food or shelter after a personal injury.  Even if a pre-settlement lawsuit loan is risk-free and will help you meet your financial needs while you are waiting for a settlement, it carries great risks as well.

Consider the funding agency’s terms on pre-settlement loans like the application charges, the interest rate, and other fees that accompany the loan.  In some cases, the fees and interest of a pre-settlement lawsuit loan are considered excessive and usurious.

There are always other financing options like insurance proceeds, disability payments, or a personal loan from friends or family members.  Make sure that you understand the terms of entering into agreements with a pre-settlement loan and that you are able to weigh all of your financing options before you decide on applying for lawsuit funding.