Am I Eligible for More than One Pre-settlement Loan?
The answer is yes. You are eligible for more than one pre-settlement lawsuit loan or funding. But, there is a lot of verification to go through for this process. Filling in a second or third application form is necessary.
Although, the extra loan funding will not be obtainable in the same lending company. Yet, you can source funds from another lending company willing to assist. But, you need to qualify for their terms. Failure to do this will lead to a rejection of your loan application. Now, let us see what the initial presettlement funding is all about.
What Is a Pre-Settlement Lawsuit Loan?
Pre-settlement lawsuit loan is a funding system given to accident victims or plaintiffs. It helps to remove the financial burden of litigation and everyday living. For example, the victims can pay for their feeding, medical checkups, rent, and the like. This peculiar loan is obtainable before a lawsuit trial begins.
If the lawsuit is successful and the victims get compensation, they get to pay back the loan acquired. However, if they are unsuccessful, they are not under duress to pay back the loan to the lawsuit loan company.
Note that there are several lawsuit lending companies out there. These companies offer different types kinds of loans to individuals. Examples are car accident lawsuit loans, personal injury, negligence, etc. Also, you could get personal injury or car accident loans the same day you apply.
How Eligible Am I for a Pre-settlement Loan?
To get a lawsuit loan, you have to check your eligibility status. But, this is not a task you embark on your own. In partnership with your lawyer, the lending company can make your eligibility status known to you. This analysis is vital as it minimizes the potential of losing your lawsuit case.
Remember that the funding company will not get any money back if you lose. So, these companies will not accept any lawsuit cases. Some examples of lawsuits that are suitable for funding are:
- liability of premises
- car accident
- compensation of employees
- animal attacks
- personal injury
- liability of product
- medical malpractice
- violation of civil rights
You could still contact a funding company if your lawsuit is not above the listed categories. This is to verify if your case can receive the pre-settlement loan or not. You can also contact your attorney for legal counsel.
How Do I Get a Second Lawsuit Loan Funding?
Getting a second lawsuit loan is possible with the guided advice of an attorney. Here is how it works. First, most lending companies only fund ten to twenty percent of a lender’s foreseeable settlement. This action is to prevent over-spending. It also ensures you have enough left over to pay the bills after compensation. Such bills include litigation fees, medical liens or controversies, etc.
After these bills are out of the way, there should be enough left over to pay back the lawsuit loan you acquired. But, if you still need funds, you can contact another lending company to help you out. This second company might be willing to offer a helping hand if they look at your case and see that you deserve it.
Before this analysis, you must make inquiries before you fill out the application form. These inquiries include the application costs, interest rates, the terms of the loan, etc.
These processes are not different from the first loan application process. You are carrying out the same actions only in a different lending company.
Note that all these processes need the involvement of your lawyer. Also, the two companies providing the loan must be in touch with each other. They must be aware of the proceedings of your cases and the necessary outcome.
What if the Second Pre-settlement Loan Request Does Not Pull Through?
This is hardly the case, but we do not ignore the possibility. For example, if you want a car accident lawsuit loan and need extra funds, you can apply for it. But, a second auto accident loan might not pull through if you request for over 20% of the expected proceed.
Note, this expected proceed is the monetary compensation your lawsuit case is worth. It is the amount you desire to get for the damage you received. This compensation could come through judgment where there is a final ruling.
Compensation could also come about through Alternate Dispute Resolution (ADR). ADR is a channel for settling disputes outside of court with the help of a mediator. This mediator is a neutral party selected by the defendant and the plaintiff. An agreement is in view when parties sign a document of the agreed settlement. The document contains the agreed actions to take by both parties.
The promised money, when paid, will settle the loan acquired. Either it is a car accident loan or any other auto accident loan.
What Are the Advantages and Disadvantages of a Pre-settlement Lawsuit Loan?
There are advantages of getting this peculiar lawsuit loan, some of which are;
- Immediate funding
- Creation of more room to negotiate
- Little to no risks involved
There are also some disadvantages of pre-settlement funding. They are:
- Lack of regulation
- The loan is cost intensive
- You might not qualify for it
Things to Remember
When asking for extra funds for your lawsuit, you need to be extra careful and take cognizance of the following:
- The application fee cost
- The interest rates
- The terms of the loan
- Litigation fees
- Medial liens
- The integrity of the lending company
- Extra expenditures before and after the monetary compensation
Note that overlooking the above-listed items could be problematic if ignored. They could cause extra financing you are not willing to pay.
Am I eligible for more than one pre-settlement lawsuit loan? Yes. Can I get denied acquiring this second funding? Yes. To prevent this from happening, follow the same steps you took for acquiring the first loan. Then, use these steps when applying to another lending company. Also, ensure your loan amount does not exceed 20% of the expected lawsuit value.
Note that your attorney must know every step you desire to make about the loan. For example, if you seek a car accident loan or any accident loan, your lawyer will be of great help.