11 Things To Know Before Getting a Lawsuit Advance
When you are hurt, in pain, and/or away from your job due to the negligence of others, your health is of course the first responsibility. However, getting back on track from such an unfortunate state is for sure your next priority.
Life gets complicated, unforeseen things happen and when on top of everything you must fight for your rights and search for justice in the Court of Law, a Lawsuit Advance can provide some leverage to your already complicated situation.
Follow my lead and find out what you need to know before getting a Lawsuit Advance.
1. What Is A Lawsuit Advance?
Of course, first thing’s first! What are we talking about? A lawsuit advance, what is that?
You might have noticed that there are many different expressions regarding borrowing money while involved in a lawsuit process (lawsuit financing, lawsuit cash advance, settlement loans, lawsuit lending, etc.), but considering the words itself, you already have a good hint of what we are talking about.
A Lawsuit Advance is a certain amount of money provided to a plaintiff involved in a personal injury litigation process to use at their disposal. A lawsuit advance is provided to you from a Funding Company and can be financial aid while your attorney works toward a fair settlement or as a financial transition while your award is upheld due to the administrative bureaucracy or ongoing appeals processes.
A Legal Funding Company buys a portion of your lawsuit award or settlement while your case is still pending or your award is withheld. In return, the Legal Funding Company receives repayment after, and only if you win the case. Yes, you read that correctly! Only if you win the case will the Funding Company get repaid.
To sum it up, a Lawsuit Advance is a certain amount of money given to the person involved in the litigation process where you have to share part of your award with the Legal Funding Company only if you win the case.
2. Difference Between A Lawsuit Advance & Lawsuit Loan
Above, I briefly described what a Lawsuit Advance is and how you can receive advanced funds from a Legal Funding Company. Now it’s time to learn the difference between a Lawsuit Advance and a Lawsuit Loan.
First of all, you must know that a Lawsuit Advance is not a Loan! It can be confusing, believe me, I know, but what you are going to read ahead will help you to understand the difference and lead you towards making the best possible decision when it comes to your future economic plans.
I will give you the simple differences between a Lawsuit Advance and a Lawsuit Loan.
- Non-recourse transition
- No hard collateral required
- No monthly payments or fees
- Recourse debt
- Collateral obligatory
- Regular monthly installment
The confusing part is that consumers have been using the terms “lawsuit advance,” “lawsuit loan,” and “legal funding” as describing the same thing for years. However, it is important to remember there is a difference.
Banks have been there forever, and we all believe in traditions don’t we! When we need money for a new business, house, apartment, intelligent upgrades and so on, there are thankfully banks that can provide us with the means we need in order to upgrade our future.
Bank loans are also available to us if we are involved in the litigation process, and by following our habits, our usual first choice for a loan is a bank loan or line of credit. Unfortunately, getting a bank loan is much more difficult for many plaintiffs.
In order to get a loan or line of credit, banks often ask for hard collateral in the form of non-liquid assets such as paper investments, personal vehicles, real estate, home equity, fine art, jewelry or collectibles. However, when you are involved in the litigation process, already suffering an injury, experience losses of any kind, what you want and need is that the method for getting the money you need be as simple as possible. Some people can easily meet all bank requirements but others may have difficulty coming up with such collateral.
On the other hand, getting a Lawsuit Advance is a pretty simple and quick process. All you need is an eligible case and a lawyer who has been hired on a contingency-fee basis. Depending on how fast your lawyer works, you can get a Lawsuit Advance in a 24-hour time frame.
A Lawsuit Advance does not require any monthly payments. In fact, you are obligated to pay back the amount only when and if you win the case. Unlike a bank loan or line of credit, where you have to continue paying your monthly installments no matter the outcome of your case, a Lawsuit Advance is a non-recourse transition.
3. How Do Lawsuit Advances Works?
Even though it is a pretty simple process, it’s always good to know as much as possible when you are getting involved in any kind of financial transactions. Of course, you are already tired from the litigation itself, but it is always better to know what is ahead, and what is to be expected in the future.
As we all know, the legal process can takes months even years before a verdict is reached or before a case is settled. With a Lawsuit Cash Advance, you have opportunity to endure even longer.
Your trail will for sure be time consuming and stressful no matter what you are fighting for, and your Cash Advance can help you take some of that burden off your back and is as simple as this:
- Find the Legal Funding Company with the lowest rates and fees
- Consult your attorney
- Fulfill your application
- Receive your Advance
Legal Funding Companies are aware of all complications that occur while the lawsuit is ongoing. That why getting a Lawsuit Advance works so well.
4. What Are The Advantages Of A Lawsuit Advance?
Lawsuits are expensive and time consuming, and somewhere in the process you will feel strapped down, worn out and tired. The application process for Lawsuit Advance for plaintiffs is simpler and quicker than the process for a bank loan or line of credit.
Getting money quickly is a Lawsuit Advance’s number one advantage, as you have read it in the paragraph above: Apply and if approved, receive! It is a fast and easy process that will help you get the money you need swiftly.
But the greatest advantage of a Lawsuit Advance is the non-recourse transaction (if the plaintiff loses his/her case or his/hers proceeds are less than what is owed under the terms of the funding agreement, the plaintiff is not responsible for paying the funding company anything.)
A Lawsuit Advance is quick to process, easily obtained, and a non-recourse transaction.
5. Are You Eligible For A Lawsuit Advance
When you are a plaintiff and you are financially secure in terms of covering your lawsuit process together with all your other living expenses, then all your troubles come down to waiting for your case to settle. However, many people need extra cash to live through the financial gap throughout their litigation.
When you have already decided to search for that additional income, you need to know if you are eligible for a Lawsuit Advance.
Any person who is planning to file a personal injury lawsuit or is already involved in a plaintiff process can apply for a Lawsuit Advance. However, not all cases qualify for a Lawsuit Advance.
Lawsuit Funding Companies employ team of experts who are working on risk evaluation. That team is called the Underwriting team. Your case eligibility is based on the Underwriting Team’s assessments regarding the approximate amount that the case can bring in a successful resolution.
Among other factors that are considered when evaluating your case for a Lawsuit Advance, there are three (3) major ones that usually decide your eligibility:
- Damages: the injuries you suffered from the accident, lost wages due to the recovery time, termination of employment, etc.
- Liability: Who is responsible for the accident
- Insurance: the amount of money that the obligor’s insurance covers
6. What Types Of Cases Are Covered By A Lawsuit Advance?
Every Legal Funding Companies’ goal is to get you the cash you need so you don’t have to settle for less than your case deserves. Since this is a fast money transaction, and in addition non-recourse one, you have probably figured it out that an Advance covers mostly Personal Injury Cases.
Cases that are covered by Lawsuit Advance differ from company to company. Generally, they cover cases based on personal injury, premises liability, product liability, medical malpractice.
Such cases can involve car accidents, burn injuries, general negligence, anesthesia-related malpractice, false arrest, wrongful death and many more.
7. Find A Reputable Lawsuit Company
Finding a Reputable Lawsuit Company is very important when you are applying for an Advance. Since the regulations of the Lawsuit Funding are not widespread it might be difficult to know which companies are treating their customers fairly, and to be treated fair is all we are looking for, isn’t it!
In order to avoid an unfortunate outcome, you find a reputable company. I know it sounds hard, but once more, arm yourself with patience and wisdom and by following a few tips begin your search.
TIP#1: Be prepared - prepare a list of questions that are essential to your case
TIP#2: Contact as many companies as you can - this will help you isolate good Funding Companies from the bad ones
TIP#3: Make sure you write down all the answers they provide - it will help you in elimination process
TIP#4: Stick to the most important questions: What are their rates and fees? Are there any hidden fees? Are you dealing with a direct funder or a broker? How long will the approval process last?
In addition, it is always good to ask your lawyer if he/she has any recommendations. If so, feel free to ask your lawyer all the questions from the tips above.
8. How Much Money Can I Get In Lawsuit Advance?
Obviously, the most important question when applying for a Lawsuit Advance is how much money will I get. Well, it is not an easy question because it all depends on various circumstances that are relevant to your case.
When your case qualifies for an Advance, your next concern is the amount of money you are eligible to receive and how much you are eligible to receive depends on the estimated value of your case.
As we have already mentioned above, the estimation of your case is done by the Underwriting team. Be aware of all the facts that need to be taken into consideration before a Funding Company makes a proposal: damage, liability, and insurance.
Insurance and Liability are crucial in defending your case’s award. You need to provide your lawyer as well as your Funding Company with all information about your injuries and medical history. When they have all the data and calculate all necessary costs, only then can they provide you with the reasonable amount you are expected to receive.
Most reputable companies will fund between 10%-20% of the total estimated value of the case. So, for example, if your case is worth $20,000, they can fund you up to $4,000.
9. How Fast Can You Get A Lawsuit Advance?
The unfortunate truth is that personal injury claims can seem to take forever to reach the rightful recovery you deserve! But with the Lawsuit Advance, you can relax for a while and cover your piled-up bills such as rent, mortgage, medical bills, electricity, and other utilities.
Your knowledge of your case and the cooperation between your lawyer and the Funding Company are the key factors when it comes to the Lawsuit Advance transfer to your account.
After the application process, all the Funding Company needs are the documents provided from your lawyer. As fast as your lawyer’s response to the Funding Company is, the faster your money transfer will be. Therefore, work with your attorney closely and urge him/her to send the information needed promptly.
Some Legal Funding Companies transfer the money in 24-48 hours, or earlier, upon receiving the signed Case Investment Agreement.
10. What Happens With A Lawsuit Advance If You Lose Your Case?
This is the best part of the Lawsuit Advance! If you lose your case, you owe the Funding Company nothing.
If it happens that you lose the case that you have had been financing by a bank loan or line of credit, the thorn in your side will still be the monthly installments that you have to pay on a regular basis.
On the other hand, if you have had obtained your funds from the Legal Company as an Advance and you lose the case, you won’t have to pay them anything.
Bank interest rates might be much lower in comparison to a Legal Cash Advance, but they will still be there if you lose your case.
11. Next Steps With A Lawsuit Advance When You Win Your Case
Of course, it seems obvious, you win the case and now it’s time to get paid, but sometimes the obligor’s side might have difficulty paying what they owe. What then?
Great question! And I have a great answer for you: If your obligor, for some reason, is unable to pay off your award in time when your positive verdict is achieved, you don’t have to worry about the Advance enrolled fees. Only when you receive your award are you obliged to pay the Funding Company the percentage you have agreed on.
To summarize, if you are involved in lengthy litigation process and your overwhelming financial burden affects your future, a Lawsuit Advance can alleviate your stress and help you cope with financial gap until justice is served.
Don’t wait another day and pressure yourself with the uncertainties of life, apply for a Lawsuit Advance and enjoy it in the days ahead.
To know more details about lawsuit funding benefits, call us here at Fast Cash Legal (844) 213-1116, or browse through this site.
Start Your Free Application Now
- No credit checks
- If approved, you can get your cash in 24 hours
- If you lose your case, you owe nothing
- There is no obligation if you apply then decide not to take the funding