Did you know that about 97% of court cases settle?
That doesn’t help you when you’re waiting for your case to go through the settlement process and you need money now. You may be waiting for funds to repair your home after a fire or need to pay medical bills.
One option that more people are turning to is pre settlement lawsuit funding. It can give you peace of mind, but you need to make sure you have the right arrangement.
Read on to discover what lawsuit funding is, how it works, and what you need to watch out for when getting a loan.
What Is Pre Settlement Lawsuit Funding?
Pre settlement lawsuit funding goes by several different names. You may hear it referred to as settlement loans, settlement advances, or pre settlement loans.
They all mean the same thing. You can get a loan or an advance based on the expected outcome of your court case. This is targeted towards people who are in a property or personal injury lawsuit waiting for the case to settle.
In some cases, that can take years to get your settlement check. That can hurt you financially because you may be out of work or you have related bills pay.
You have limited options, such as using up your savings or putting everything on credit cards. In the meantime, your financial stability plummets along with your credit score.
The way a pre settlement loan works is that you get an advance of money, which you can use to take care of your immediate financial needs. You pay the loan back when you receive your settlement funding.
It can be a great way to take the financial pressure off of you and your family while you wait for your settlement check. There are some things to be aware of.
Some lenders offer pre settlement loans to take advantage of people and make offers that are too good to be true. There are scams, but you need to know what to look for in these shady lenders.
Do You Pay If You Lose Your Case?
The settlement loan is supposed to be paid back when you get your case settled. What happens if you lose and don’t receive a settlement?
You have to read the fine print when you’re talking to pre settlement lenders. There are some lenders that won’t make you pay the loan back and there are others that will.
How to Get Pre Settlement Lawsuit Funding
Does a pre settlement loan seem like a good option for you while you wait for your case to settle? Here are the steps to take to vet lenders and get a pre settlement advance.
Know Your Numbers
Your first step in getting a lawsuit loan is to know how much you need. You don’t want to get a settlement loan for the entire settlement amount because you still want to have something when the case settles.
It’s best to get a minimum amount of funding, pay it back, and have plenty left over. Do a budget and make sure that you stick to it. It may be tempting to get something you’ve been putting off with those funds.
You have to have the financial discipline to make it all work for your financial and emotional health.
Talk to Your Attorney
Your attorney does need to get involved in pre settlement loans. The most reputable lenders actually require it.
Talk to your attorney about your current financial situation. You have to discuss the amount of money you need, how much the settlement will be, and the odds you’ll win your case.
The great thing about getting your attorney involved is that they will handle most of the process for you. The attorney will send documents to the lender and follow-up with questions.
If you’re in a situation where you need the funding immediately, you may want to take some of that responsibility. Attorneys are notoriously busy, and that business could delay your application and your money.
Decide what documents you can gather and what the attorney will provide to the lender. Remember, the more you can do, the less you can pay your attorney.
Finding a Good Lender
There are a lot of lending scams out there. You need to avoid them and find a reputable lender that you can trust. You can ask for lenders when you speak with your attorney.
For example, lenders that offer lawsuit loans without an attorney may be looking to take advantage of your situation. With your attorney by your side, you can avoid lenders that charge incredibly high fees and interest rates on the loan.
You’ll want to read lawsuit loan reviews to find lenders that have a record of successful loans. Check out the websites of lenders and make sure that they have a physical address.
A loan company that operates out of a PO Box is a red flag. You also want to make sure that there are different ways to contact them, such as by phone, email, or chat.
Applying for Your Loan
Once you have your lender, it’s time to apply for the loan. The lender will require a lot of documentation about your case.
They’re giving you a loan that you may not have to pay back if you lose your case. They want to make sure that your case is all but certain.
After the review, they’ll approve your loan. Lenders will send the funds to your attorney, and the attorney will disburse the loan to you.
A Pre Settlement Loan Can Make a Difference
It can take years to see any funding from a personal injury or property case. You still have a life to live and bills to pay. Pre settlement lawsuit funding can help you take care of your bills while you wait.
That will give you peace of mind.
Be sure to head over to the home page for more financial guides and tips to get out of debt.