Financial challenges arising from an accident are often foreseen. Therefore most accident victims’ hope for any assistance to cater to personal and legal expenses before their case is settled. Pre-settlement funding companies are the most renowned corporations in the field of lawsuit loans. A lawsuit loan is simply the finances you receive that are charged against your settlement.
Such loans are available for various cases, and pre-settlement funding companies are known for giving more consideration to personal injury cases. Hence, an accident victim who has already instituted or intends to institute a personal injury case has a higher chance of obtaining a lawsuit loan.
Qualifying for a lawsuit loan is, however, not automatic. Here are some of the factors that a pre-settlement funding company might consider before approving your application.
Must Be an Adult
As much as lawsuit loans are not considered actual loans, age is a factor when the determination of your lawsuit loan application is being made. Only persons that are eighteen years and older can qualify for such a loan.
A pre-settlement funding company cannot fund a case where the plaintiff is self-representing. An attorney’s presence in a personal injury case is vital. From the pre-trial stage of a case to the trial stage, lawyers are the masterminds of ensuring the right documents have been filed, and that court procedures are being followed.
Where the personal injury case attracts an out of court settlement, there are no better negotiation experts than lawyers. When you have a lawyer on board, the pre-settlement company will have some level of trust that a settlement will be reached.
Lawsuit loaning companies are dependent on the outcome of your case to recover their funds. Therefore lack of legal representation is ground for rejecting your application.
Legal Fees on Contingent Terms
A contingency fee is a legal fee paid to your attorney upon a successful settlement. Before a pre-settlement funding company gives you a lawsuit loan, they will inquire from your attorney to ascertain legal fees payment terms. Most attorneys operating on contingency fees are bound to conduct your personal injury case with great due diligence because they equally have an anticipated economic gain.
Such a lawyer will always work towards expediting proceedings in case of litigation leading to a quicker trial process. Where the case is to be settled out of court, the lawyer will aggressively negotiate for better terms and subsequently ensure that a settlement is reached soon.
Full Cooperation from Your Lawyer
The interest of a pre-settlement funding company in your case is solely financial. Your attorney must be agreeable to full cooperation with the lawsuit loaning company before your application is considered. In respect of the legal expertise attorneys have, their judgment on the chances of a case most times is reliable. The lawsuit loaning company will require that your attorney discloses some facts about your case, including their opinion on chances of success.
Also, the worth of your case is a mandatory disclosure. A lawsuit loan company will want to ascertain that the amount of funds given to you are a correct percentage; otherwise, the company will incur losses. Once you decide to apply for a lawsuit loan, your attorney becomes a trustee of the company. Therefore your attorney is obligated to assure that once your settlement check is paid, the lawsuit loan company will be the first to receive their funds together with interest.
The Signing of an Agreement
An agreement is a contract; in the event of a breach, the breaching party can be held liable hence compelled to pay damages. The relationship between the lawsuit loan company and you is contractual.
Before any arrangements of disbursing funds your way commence, the company will ensure that both you and your attorney agree to the terms of payment. In scenarios where an attorney fails to sign the agreement, you won’t get the loan. Since agreements are legal documents, your attorney can always advise on the way forward, dependent on the contents.
Having met the considerations, a pre-settlement funding company will ensure you receive the funds as soon as possible. If you ever have financial strain when handling a personal injury case, always know that there is help.