Frequently Asked Questions
Why can’t I just go to the bank?
You can certainly try to get a loan from a bank. However, a bank will require collateral and repayment whether you win or lose your lawsuit. They’ll also do a credit check. On the other hand, a lawsuit loan is only based on the likelihood of your settlement and you only have to pay back your lawsuit loan if you get a settlement. No credit check or income is necessary. No payments are due until you receive your settlement.
The lawsuit lender is asking for a lot of information. Is this necessary?
Yes, it’s necessary. Remember a lawsuit loan is made without a credit check and if you don’t get a settlement, you don’t have to pay your settlement loan back. Because of this, lenders have to make sure they cross every “t” and dot every “i” before they give you money.
Can I use the money for whatever I want?
Yes, what you do with the money is entirely up to you.
How much can I get?
Lawsuit loans are generally only a fraction of the amount of money you expect to receive from your lawsuit. Most lawsuit loans range from $250 to $100,000. Typically, the lender will fund up to 10-15% of your expected settlement. This may seem like a low amount but there are lot of factors that come into play. For example, your settlement may be reduced, delayed, denied, or overturned. Since the lender bears most of the risk it’s natural that they try to reduce it as much as possible.
Can I get more than one loan?
Yes. It’s not unusual for clients to get more than one loan from a lawsuit lender.
What’s the process for getting a lawsuit loan and how long does it usually take?
First, locate a lawsuit lender. You can usually apply for a loan online. Once you’ve applied, immediately contact your lawyer and tell him you’ve applied for a lawsuit loan. You must tell your lawyer you authorize the release of any information necessary to underwrite your loan. Without this authorization, the lawsuit lender cannot proceed. Once the lawsuit lender receives the information from your lawyer, you’ll usually hear back from the lender within one week. If the lawsuit lender agrees to fund your case, they’ll send documents to your laywer for you and your lawyer to sign.