Lawsuit Loans, What are Pre-Settlement Loans?

Pre-settlement loans put money in your pocket before your lawsuit is settled. A lender reviews the merits of your case.

If they believe you will win your personal injury case, it loans you money so that you can pay for expenses incurred as a result of the injury or harm for which you are bringing the lawsuit.

In this Litigation Guide article we will discuss what pre-settlement loans are and what type may be available for you.

How to Obtain a Pre-Settlement Loan

The first step is to contact a personal injury attorney who specializes in the type of case you have. Were you injured at work through the negligence of your employer?  Did you slip and fall due to the negligence of the local store? Were you fired as an act of sexual harassment or bullying? Were you hit by another driver who was being reckless?  These are just a few of the possibilities, and there are personal injury lawyers who are experts in these areas of law.

The litigation attorney will review the facts of your case. He or she might depose those involved. This means they will be interviewed under oath in a manner that is legally binding. It’s the best way to bring out the truth of what occurred and show where the negligence of another led to you being injured or harmed.

Applying for a Lawsuit Loan and Receiving It

You’ll have to fill out an application for the loan. The company will want input from your attorney and might even require transcripts of depositions or medical records to assess the case.

If the company believes that you will receive a settlement in the case, they will determine an amount they are willing to loan you. The company will make the pre-settlement loan for a small fee or percentage.

Repaying Settlement Loans

When you receive a settlement, you pay back the lawsuit loan company the agreed-upon amount. They will place a lien on the loan and then release the lien when they are paid.

In most cases, if you lose the case and receive nothing, you will not have to pay back the loan. That is the risk that pre-settlement loan companies take as part of the cost of doing business.

If you’ve got bills that need to be paid before you settle your lawsuit, a lawsuit loan might be ideal. Pre-settlement loans have helped many people keep their home, their cars, take care of their families and stay out of bankruptcy while waiting for the cash damages they deserve.