Lawsuit Loans Work By Helping Plaintiffs With Cash
Understanding how lawsuit loans work is understanding that lawsuits take a long time to resolve. Some cases take many months, most take years to conclude. This delay in justice is simply a limitation of the legal system.
What’s unfortunate is that many plaintiffs struggle financially while they wait for their cases to settle. This struggle forces some plaintiffs to accept less than adequate compensation as settlement.
If you are a plaintiff in a lawsuit, you should know how lawsuit loans work because they can offer a much needed financial lifeline. If you are struggling to pay your bills, while you wait for your case to conclude, we can help!
What is a Lawsuit Loan?
Lawsuit loans are private financial transactions between plaintiffs and “lawsuit funders” – companies who advance money to plaintiffs prior to settlement. The purpose of lawsuit loans is to level the playing field between financially strong insurance companies and plaintiffs who often find themselves unable to make ends meet. How lawsuit loans work is by advancing immediate cash in return for a portion of the future settlement proceeds. These deals are also known as pre-settlement loans or pre-settlement funding.
How Lawsuits Work
A typical lawsuit arises when a loss occurs. Consider an automobile accident in which one person sustained injuries because another driver was negligent. The injured party seeks treatment and consults an attorney. Together, they decide if it is worthwhile to pursue a claim. If so, the attorney puts the other party on notice of the claim by filing a complaint.
From there, the defendant is represented by lawyers hired by the defendant’s insurance carrier. That is one of the reasons why we all purchase car insurance after all.
The problem is that once insurance lawyers are involved and the case enters the legal system, the process for getting any recovery slows down considerably.
Judges set a calendar of deadlines which both parties must follow. These include filing motions, submitting evidence and also discovery deadlines. These dates range from 30 to 90 days from each other.
In most civil actions, such as personal injury cases, the parties must exchange material information about the case. This includes each side telling their part of the story and is part of the lawsuit known as “discovery”. Discovery can take years to complete depending on the type of case, length of treatment, etc.
As part of discovery, both parties answer written questions asked by the other side. These are formal questions answered under oath and are sometimes referred to as interrogatories. Another integral part of discovery is deposition testimony. Deposition testimony is oral testimony taken under oath. There are court set deadlines for these stages as well. In serious cases, all important witnesses are “deposed” but the scheduling of these dates are often delayed due to conflicts of attorneys, clients, and expert or other witnesses. This only adds to the delay.
During the phase leading up to trial, it is common that opposing counsel will disagree about some issue. This can result in more time elapsed since resolution of this issue must be decided by a judge. Both sides “brief” the issue and submit their written arguments to the judge. Each has a specific time to reply and the matter is set for oral argument. This dance can delay the proceedings several months just to resolve one specific issue.
When discovery completes and the trial date nears, lawyers from both sides usually attend a pre-trial conference with the judge. There the parties will plan the remaining steps in the legal process. Any remaining evidentiary issues are usually decided at this time.
If a trial occurs, it will likely add a week or more to the process. After the verdict, post trial motions are written, submitted, replied to and argued before the same court. Depending on those decisions, either party may decide to appeal. Both sides have that right.
When all of the above are concluded, plaintiffs still wait to receive money. Insurers have at least 30 days to cut a check. The amount must be deposited into the attorney’s trust account and then disbursed from there. This adds even more time.
Ultimately, plaintiffs can expect their lawsuit to take well over a year in most circumstances. More complex cases such as medical malpractice or products liability actions can take many years to finally conclude.
The Good News About How Lawsuit Loans Work
Examining the time it takes to litigate a lawsuit through the legal system is an eye-opening experience. It can feel overwhelming once you consider all the steps and time it takes to pursue justice. Remember – the wheels of justice turn, but they turn slowly.
There is good news however if you consider how lawsuit loans work. Lawsuit loans are designed to provide financial support so that plaintiffs can endure the legal process. With lawsuit loans, plaintiffs can avoid agreeing to low-ball settlement offers simply because of financial pressure. With a quick lawsuit loan, you can turn your financial situation around in just a couple of days.
Lawsuit loans work at the source of the problem and allow plaintiff attorneys to do their job properly, without the pressure to negotiate a quick settlement.
How the Lawsuit Loan Process Works
Most clients seeking lawsuit loans need the money yesterday. Thus, the lawsuit loan process is quick and works like this:
- You Apply – the way lawsuit loans work is the process begins with an application. You can apply here or give us a call at 888-964-2224. A representative will go over your funding options with you and tell you all about how the lawsuit loan process works.
- We Investigate and Communicate – during the application process, you provide us with your attorney’s contact information. We contact their office and request important documents relevant to your case. Once we review them, we contact your attorney and discuss your file.
- You Receive Part of Your Settlement in Advance – once approved, we forward you a contract which you execute and return. When we receive it, we send you your money via overnight courier or electronic bank transfer.
We can typically get your money to you within 24-48 hours. If you want to help speed up the process after you apply, contact your attorney and let them know you’ve applied for funding. Attorney cooperation is an integral part of how lawsuit loans work.
If You Have Any Questions, Call 888-964-2224
How Can Lawsuit Loans be Used?
The purpose of lawsuit loans is to ease the financial burdens you face while your lawsuit is being pursued. Lawsuit loans work by supporting you during this time so you can take care of expenses such as:
- Daily living expenses such as utilities, gas and food
- Past medical bills or medical treatment
- Mortgage or rent
- Past debts
- and others. . .
In fact, you are the only decision maker on how to make lawsuit loans work for you. As such, there are no limitations or restrictions on the use of a lawsuit loan. You can use it in any manner you wish. After all, it’s YOUR money.
Am I Eligible for a Lawsuit Loan?
If you are a plaintiff in a lawsuit, have an attorney, and understand how lawsuit loans work, you understand that you’ll likely qualify for a lawsuit loan from Fair Rate Funding. We provide lawsuit funding in eligible states throughout the U.S.A. for a wide variety of cases. These include:
- Animal & Dog Bites
- Amusement Park Accidents
- Automobile Accidents
- Asbestos Cases
- Aviation Accidents
- Bicycle Accidents
- Boating Accidents
- Bus Accidents
- Construction Accidents
- Defective Products
- Maritime cases
- Medical Malpractice
- Motorcycle Accidents
- Motor Vehicle Accidents
- Nursing Home Negligence
- Pedestrian Accidents
- Premises Liability
- and others . . .
If you have a lawsuit, an attorney and need financial support, you are eligible to apply for fast lawsuit loans as a possible solution. To get started, simply contact us or give us a call. We are here to help and are at your service.
Thank you for your interest in the most common lawsuit loans and Fair Rate Funding.
To be eligible, you must be 18 years old, have a pending claim/lawsuit and be represented by an attorney on a contingency fee basis. This means your attorney is only paid a fee if he/she helps win your case. Settlement loan companies want to see your attorney willing to work in anticipation of payment. This means to us that your attorney believes in your case. We want to believe in your case too. That’s why lawsuit loans work best when your attorney has a stake in the outcome.
Choosing a Lawsuit Loan Company that Works for You
Choosing the best lawsuit loan company is simple, YOU ALREADY FOUND US! Seriously though, you should consider how to shop for a lawsuit loan with caution. You want to find a lawsuit loan company that works in your best interest.
Lawsuit funding is generally an unregulated marketplace. This means if you shop, you can find a funder willing to give the best deal. Thus, you should spend some time searching around and then weed out the pretenders by asking questions such as:
- Is the company a direct lender?
- What lawsuit loan rate is charged?
- Does the rate compound?
- If it does compound, how frequently (daily, monthly)?
- Are there any processing or other fees?
- Is repayment required if the case is lost?
- Will the company run a credit check?
- Is the advance non-recourse?
- Do you have to repay the whole amount if the repayment is more than the settlement/recovery?
With these questions, you are well on your way to finding the best lawsuit loan company.
Get Started Now
We know you have a choice of lawsuit settlement funding companies and are happy to assist you in your time of need. If you have any questions at all, contact us or give us a call TOLL FREE at 888-964-2224. We are here to help!
Thank you for your interest in how lawsuit loans work and Fair Rate Funding, an industry leader in the lawsuit funding business.