Pre-settlement lawsuit funding is a type of loan that is meant to support people in filing a variety of lawsuits. Lawsuit fund providers will front you, the person filing the lawsuit, with the money to hire a lawyer and pay for any other court related costs. At the end of the case, once the settlement is decided on, the lawsuit loan providers will require that you pay back the amount that you borrowed from them in order to take on your case. This may sound scary to you because what happens if you are unable to pay back the loan with the money you won. What happens if you do not win anything at all? Well, the good thing about pre-settlement loans is that all of the risks is on the funding providers. What this means is that if you do not win your case, then you do not have to pay back the loan. Because all of the risks is taken on by the loan providers, they need to be careful when they are deciding which cases to provide loans for. It may sound easy to get funding for your lawsuit because it is likely that you have believe that your case is worth the time and effort and that you will get some money out of it. Unfortunately, lawsuit loan providers do not see every case as “likely to win.”
What types of cases can I get lawsuit loans for?
Most of these lawsuit loans go toward funding cases for victims of DUIs, medical malpractice, or some kind of accident that resulted in bodily harm. The reason that lawsuit loan providers are more willing to help with these kinds of cases is because there is a higher chance that the victims will get a payout in the end. Furthermore, there is a good chance that the settlement will be much larger than for smaller cases with less damage done.
This is not meant to discourage you from applying for a lawsuit loan. If you have a case that you would like to receive pre-settlement funding for, it will not hurt you to file the paperwork and try to get a loan approved. A case assessor will take a look at your situation, speak with a lawyer about what types of cases could be built, and decide how high of a risk a loan would be. If the risk is low, then you could be looking at a significant sum of money to fund your case.