Lawsuit Loan Process
The process of obtaining and getting approved for a lawsuit loan is simple in nature. Everyone who has an active lawsuit is eligible for a lawsuit settlement loan. The reason everyone is eligible is because your credit history and score play no role in determining if you’ll get approved for lawsuit loan, which is one of the main benefits of a lawsuit loan. This guide is going to go over the process of applying and getting funded for your lawsuit settlement loan. Please note this guide may not include extra services done by certain lenders.
It’s also important that you learn about the costs of a lawsuit loan before you apply. We hear from a lot of people who have obtained funding from a lender and didn’t know it would cost so much. Please, educate yourself about lawsuit loans before you make any decisions. This guide is strictly intended to explain the process, not weigh out the pros and cons. If you’re ready you can start below.
- Preliminary Contact & Case Information
- Contact With Attorney & Advanced Case Information
- Approval Decision and Loan Amount
- Terms & Conditions Agreement
- Plaintiff Receives Funds
#1 - Preliminary Contact & Case Information
When you first contact a lawsuit loan lender they will want some basic information. This first step is simple since you have full control. They will ask for your personal information, attorney contact information and details about your lawsuit. Most borrowers will provide this information via a contact form on the lenders website or to a representative if they contact the lawsuit loan lender directly.
We recommend that you try and deal with lenders directly, brokers are 3rd party people who are a go between for you and lawsuit loan providers. This can actually increase the cost of the loan and the time it takes for approval. While it may be hard to tell if you’re dealing with a broker sometimes all you have to do is ask and they will tell you.
#2 - Contact With Attorney & Advanced Case Information
By this point you will need to or already have signed a document allowing the lender to contact your attorney and get what information they need about your case. It’s a good idea to let your attorney know ahead of time before this happens, this way they are prepared and know the request is coming. Remember, regardless what an attorney says about lawsuit loans they must provide your case details to a lender if you request it.
Depending on where you are in your case your attorney may or may not be able to provide all the information requested. Until the lenders have all the documents and information they need they won’t be able to make a decision on your case. Most lawsuit loans are approved with 7 to 28 days when the proper information is presented to the provider.
#3 - Approval Decision and Loan Amount
At this point the lawsuit loan lender will either approve or deny your loan request. If denied you can simply try some other lenders to see if you get a different result. Remember, denial doesn’t mean you can’t obtain a lawsuit loan, it just means that lender won’t take on the risk for your case, which can be due to factors totally not related to your case. Some lenders just have limits to the amount of money loaned to a type of case during a specific time period.
If you are approved, congratulations, you are right on the path to securing the financial support you need. Most likely they either approved you for the amount of money you requested or they approved you for a lesser amount, which you could accept or deny and try another lender for the original amount you requested.
#4 - Terms & Conditions Agreement
This is where you agree to any fees and interest that will be offered by the lender for the amount you requested to borrow. You should learn about the overall “costs of a lawsuit loan” before you decide to accept or deny their terms. Remember, the larger the principle and the longer the term means the more you’ll pay at the end. Make sure to have your attorney review the documentation and make sure it all looks proper and correct.
You’ll probably have a limited amount of time to either approve or deny the terms and conditions. Don’t be surprised if they want a response in 24 to 48 hours. They do this so you can’t find a better deal elsewhere, but don’t be fooled they’ll give you much more time if you request it. Just don’t take longer than 30 days to accept their offer. Before you receive any money a lien will be put on your future settlement by the lender.
#5 - Plaintiff Receives Funds
Lawsuit loan lenders can fund you in many different ways. They can do a direct deposit, overnight a cashier’s check or wire the funds via western union. Make sure you receive the full amount you requested and remember this money needs to last you until your case is settled. It can benefit you to have a portion of this money left when you case settles. You can start paying your loan back before your case settles if you have the means. This is a great way to lower your interest costs and reduce the amount you need to pay the lender.
