Lawsuit Loan Frequently Asked Questions


Lawsuit Loan Frequently Asked QuestionsWelcome to the lawsuit loan frequently asked questions archive. Here youíll find the answers to the top 10 most asked questions regarding lawsuit settlement loans. If you canít find the answer to your question in this archive or on any of our other web pages you can contact us. We answer all questions within 24 to 48 hours however we cannot give any legal advice regarding your case. The list below is the 10 most commonly asked questions related to lawsuit loans.


  1. What is a lawsuit loan?
  2. How much will my lawsuit loan be for?
  3. What case types are accepted for lawsuit loans?
  4. What are the costs of a lawsuit loan?
  5. How do I pay back my lawsuit loans?
  6. What happens if I lose my case?
  7. Do attorneys offer lawsuit loans?
  8. How will my attorney react to me getting a lawsuit loan?
  9. Can you get a lawsuit loan with bad credit?
  10. Does the other party in my suit know about the lawsuit loan?

What is a lawsuit loan?

A lawsuit loan, which can also be called a lawsuit advance or settlement loan is a non-recourse loan given to a plaintiff involved in a lawsuit. Plaintiffs will usually seek out a lawsuit loan if they are unable to financially support their family during their pending lawsuit. This is usually a last resort if other traditional methods of borrowing money have failed. One of the main benefits of a lawsuit loan is the fact that your credit history and credit score have no effect on your ability to obtain a lawsuit loan.



How much will my lawsuit loan be for?

This is one of those questions that only your lawsuit loan lender can answer. The actual amount of money that you can borrow against your lawsuit will depend on quite a few factors. Some of these factors include the value of your lawsuit, the estimated cost of attorney fees and the average settlement amount for your type of case. You should contact a reputable lawsuit loan provider to get more information on how much you can borrow against your case.



What case types are accepted for lawsuit loans?

There are many types of case that can get a lawsuit loan but they will vary between lenders. For example, every lawsuit settlement loan provider will take car accidents. However, many lenders will avoid some, if not all, drug related lawsuits. Itís a good idea to spend time researching lawsuit loan providers and find one that specializes is your type of case. If possible try to talk directly to a lender and avoid brokers.



What are the costs of a lawsuit loan?

The costs of a lawsuit loan will vary between lenders. Obviously different lenders will charge different upfront fees and the interest rate will vary based on the type of case and risk factor. This is why itís generally a good idea to get quotes from multiple lawsuit loan lenders to try and find the best deal. Compounding interest can really start to add up over time and itís a good idea to only borrow what you need. Talk with your attorney and try to estimate how long your case will take to get a better idea of how much youíll need to borrow.



How do I pay back my lawsuit loans?

When you signed up for a lawsuit loan you effectively allow the lender to place a lien on your possible future settlement amount. This means that your attorney will have to distribute out payments to all lien holders before you get any cash from your settlement or awarded amount. Luckily this means it will be paid guaranteed by your attorney with no work on your end. The process is exactly the same for how your attorney gets paid if they are working on a pay only if you win premises.



What happens if I lose my case?

A lawsuit loan is a non-recourse loan, if for some unfortunate reason you lose your case you wonít be responsible for paying back the loan. This is one of the best benefits of a lawsuit loan, the fact you donít have to pay it back if you lose your case. However, this is also why the costs of a lawsuit loan can run rather high due to the risk the lender might not get paid back.



Do attorneys offer lawsuit loans?

No, an attorney cannot directly lend their clients any money, nor can they encourage the idea of a lawsuit loan. This is because it can create an unethical situation where an attorney will try and force a client to keep moving forward, or not to settle in order to be able to cover the loan. If your attorney offers to lend you cash you should report them to your states bar association and find a different attorney.



How will my attorney react to me getting a lawsuit loan?

Attorneys know the hardship and financial stress that can weigh on their clients during a lawsuit. They also know that when their client can survive financially throughout their case they are less likely to settle for less than the case is worth; letís face it, the more money you make the more your attorney makes. We recommend that you speak with your attorney prior to applying for a lawsuit loan. Give them a heads up and let them prepare all the information that lenders will request.



Can you get a lawsuit loan with bad credit?

Yes, in fact your credit score and credit history have no effect on your chances of getting approved for a lawsuit loan. The main factors depend on the value of your case and the likely hood that youíll receive a verdict in your favor. If you do have good credit you should consider some other sources of financial support if possible as they tend to charge less interest overtime.



Does the other party in my suit know about the lawsuit loan?

No, the other party involved in your case will never know about your lawsuit loan or the fact that you applied for one. Even if some how they other party did find out it wouldnít affect your case in any way. Privacy laws protect you in this situation and if you find out that they did obtain that information youíll want to tell your attorney right away so they can investigate further.