Loan on My Lawsuit Archives

Understanding How to Get a Loan on My Lawsuit

Lawsuits take time and can be stressful—not only because of the legal battle itself but also because of the financial strain it often causes. If you’re unable to work due to an injury, falling behind on bills, or facing mounting medical expenses, you might ask: Can I get a loan on my lawsuit?

The good news is, you can. A loan on your lawsuit—commonly known as pre-settlement funding or a lawsuit cash advance – provides immediate financial support while your case moves through the legal system. In this post, we explore how to get a loan on your lawsuit in detail. This includes eligibility requirements, the application process, pros and cons, and other things you might find useful. The goal is to make plaintiffs aware of what they are getting into and what common pitfalls to avoid.

What Is a Loan on a Lawsuit?

A loan on a lawsuit is a cash advance given to plaintiffs expecting a financial settlement or judgment from a pending lawsuit. Legal funding contracts are designed as an immediate sale of future proceeds. As such, they are not actually loans in the traditional sense. In fact, there are many differences between personal loans and lawsuit loans. Unlike traditional loans, these advances are non-recourse, which means you only repay the loan if you win or settle your case. If you lose, you owe nothing and the funding company cannot pursue you personally for repayment.

Getting a loan on a lawsuit is especially helpful if you’re unable to work or have significant out-of-pocket costs while your lawsuit is pending. It bridges the financial gap until your case concludes.

Why Consider a Loan on My Lawsuit?

Plaintiffs pursue lawsuit loans for a variety of financial and strategic reasons. Here are some common situations where a loan on your lawsuit can be helpful:

Covering day-to-day expenses such as rent, food, or utilities while you wait for your case to resolve.
Paying for medical treatment related to injuries sustained in accidents or malpractice.
Avoiding early, low-ball settlements from insurance companies by giving you the breathing room to negotiate.
Replacing lost wages if you are unable to work due to the circumstances of your case.

If any of these apply to you, a loan on your lawsuit might be a viable solution.

Types of Cases That Qualify for a Lawsuit Loan

Most lawsuit funding companies focus on personal injury and civil litigation cases that are likely to result in a monetary payout. Common qualifying cases include:

Car accidents
Medical malpractice
Slip and fall injuries
Workers’ compensation
Wrongful death
Employment discrimination or wrongful termination
Product liability
Premises liability

The stronger your case and the higher the expected settlement, the more likely you are to be approved for funding.

How to Get a Loan on My Lawsuit:

Getting a loan on your lawsuit is a relatively straightforward process, especially compared to applying for traditional loans. Here’s a step-by-step guide to help you understand what to expect:

Have an Attorney

To qualify for a lawsuit loan, you must have legal representation. Most funding companies only work with plaintiffs whose attorneys are working on a contingency fee basis. This means your lawyer only gets paid if you win the case. Funders prefer this type of arrangement because it generally means the representing attorney strongly believes in the case’s merits. Otherwise, an attorney would not spend his/her time or money pursuing the matter.

Research and Find a Reputable Lawsuit Funding Company

Reputable lawsuit loan companies exist but they may be hard to find. Using the information available online and elsewhere, plaintiffs can contact various funders and ask questions. Prudent investigators look for funders who offer:

Transparent fee structures
Positive lawsuit loan company reviews
No hidden fees or upfront costs
Fast processing times – same day lawsuit loans occur every day

Plaintiffs might be wary of companies that promise “guaranteed” approvals without compiling necessary paperwork.

Submit Your Application

Once you find a suitable funder, simply apply for lawsuit funding. You’ll need to provide:

Basic personal information
Case details (type, date, injuries, etc.)
Your attorney’s contact information

The funding company will reach out to your lawyer to obtain documentation and assess the merits of your case.

Case Underwriting

Once the necessary paperwork is gathered, the underwriting process begins. Lawsuit funding underwriters review your documents and contact your attorney to determine whether your case is a fundable one. They try to determine:

The strength of your claim
Estimated value of your future settlement
Timeline of the case

Accept or Reject the Funding Offer

Once you’re approved, you’ll receive an offer outlining:

The amount of the advance
The interest rate or funding fee
Repayment terms

Most reputable lawsuit funders adhere to lawsuit loan best practices, which are designed to legitimize the practice of providing lawsuit loans to the public as a business undertaking. To understand more about lawsuit loan best practices, visit this page. It also might be a good idea to review the contract with your attorney before signing.

Funding

The lawsuit loan process ends with clients getting funding. Once the agreement is executed, funds are sent via electronic funds transfer or overnight courier. When you receive the funds, your attorney will place the funding agreement as a lien in your file to be paid at the time of disbursement.

How Much Can I Borrow?

How much lawsuit funding depends on the estimated value of your lawsuit. Most funding companies offer 10% to 20% of your expected settlement amount.

For example, if your case is estimated to settle for $100,000, you might be eligible to receive between $10,000 and $20,000 in advance.

If You Have Any Questions, Call 888-964-2224

WE ARE HERE TO HELP YOU!

Repayment Terms

One of the biggest advantages of getting a loan on your lawsuit is that repayment is contingent on you winning the case. If your case is unsuccessful, you do not have to repay the money. If you do win or settle, repayment is typically handled directly by your attorney. The funding company is paid out of your settlement before you receive the remaining balance.

Because of the additional risk of loss (total loss) borne by the funding company, plaintiffs can expect additional costs to offset this risk. Competitive lawsuit loan rates are generally 18-20% every six-month period.

For a $10,000 lawsuit loan contract, plaintiffs will repay an additional $1,800 to $2,000 for every six-month period from the time of executing the contract until the advance is repaid. For example, if a case resolves within the first six-months, plaintiffs will pay $11,800 to $12,000 for that same $10,000 contract.

Pros and Cons of Getting a Loan on My Lawsuit

There are pros and cons to weigh with any financial transaction. Getting a loan on your lawsuit is no different. Those plaintiffs considering legal funding might want to consider the following:

Pros:

Risk Free Transaction: As stated above, lawsuit loans are not repaid if the case is unsuccessful.
Immediate Access to Cash: Legal funding is quick because plaintiffs usually only turn to lawsuit loans as a last resort. Accordingly, funds are often delivered in 24–48 hours after approval.
No credit check: Approval depends on the expected success and value of a case. Credit scores, income verification and employment history are typically not considered.
Flexibility Allows Attorneys the Time to Secure Just Compensation: Getting a loan on a lawsuit allows plaintiffs to reject low-ball settlement offers simply to ease financial strain. With financial pressure relieved, attorneys can properly litigate the case to secure a fair resolution.

Cons:

High fees: Lawsuit loans can be expensive. Interest or flat fees accumulate over time.
Reduced settlement: The repayment and fees leave less for the plaintiff at the end of the case.
Lack of regulation: Not all states regulate lawsuit lending, which can lead to predatory practices.

If You Have Any Questions, Call 888-964-2224

WE ARE HERE TO HELP YOU!

Alternatives to a Loan on My Lawsuit

Lawsuit loans are usually a last resort for plaintiffs in a financial bind. Most have exhausted these alternatives before they apply for legal funding:

Personal loans: If you have good credit, this may offer lower interest.
Credit cards: Costly but may provide short-term help if used wisely.
Family and friends: A personal loan from someone you trust could be more flexible.

Tips for Choosing a Lawsuit Loan Provider

When you’re trying to get a loan on your lawsuit, choosing the right provider is critical. Here’s what to look for:

Transparent Terms: Make sure the contract is clear about interest rates, fees, and repayment conditions.
No Upfront Fees: The best lawsuit loan companies will not ask for money upfront.
Attorney Cooperation: A good company will coordinate smoothly with your legal team as attorney cooperation is essential to the undertaking.
Customer Support: Look for responsive customer service in case you have questions or concerns. You might also try to find a company which uses live lawsuit loan representatives instead of a phone directory system to speed up the process.

Always discuss the funding arrangement with your attorney to ensure it aligns with your legal strategy.

Frequently Asked Questions

Q: Is it legal to get a loan on my lawsuit?
A: Yes. Lawsuit funding is legal in most U.S. states, although regulations vary. Always check your state’s rules or consult your attorney.

Q: Will this affect my case?
A: No, as long as you work with a reputable funding company. Your attorney will remain in control of your legal strategy.

Q: Can I apply for more than one advance?
A: Yes, some companies offer multiple lawsuit loans if you need more money, the case takes longer or the value increases.

Q: Do I need to make monthly payments?
A: No. Repayment is a one-time deduction from your settlement at the end of the case. This is handled by your attorney.

Should I Get a Loan on My Lawsuit?

If you’re struggling financially and need support while your lawsuit is pending, getting a loan on your lawsuit can be a practical solution. It offers quick cash, doesn’t require credit approval, and puts no repayment burden on you if you lose the case.

A lawsuit loan is a powerful tool—but like any financial decision, it should be made carefully and with full awareness of the consequences. When used wisely, a loan on your lawsuit can give you the financial stability to see your case through and maximize your potential settlement.

Thank you for your interest in Fair Rate Funding.

Apply Now