Borrowing Money From A Pending Lawsuit
If you are thinking about how to borrow money against a lawsuit, you are not alone. Many people in the midst of lawsuits find themselves in need of basic funds to cover day to day living expenses. Especially in personal injury lawsuits, you may be injured and unable to go to work, which prevents you from bringing in any money at all. If you want to know how to get settlement money early, you’ve come to the right place.
Personal injury lawsuits can drag on, sometimes for a few months to years. In the long run, it is in your benefit to let the case run its course rather than settling, because you will end up with a bigger payout. Plaintiffs want the defendant to wrap up the case as soon as possible, because that means that you’ll end up settling and take whatever is offered to you. But when you are under the financial strain of needing money now, and you can’t wait for your settlement funds to come through, you’ll be happy to know you can borrow money against your lawsuit, and get the cash that you need now, and quickly.
Do Lawyers Give Advances on Settlements?
You’ve hired a good lawyer to take on your personal injury lawsuit and he thinks you have a good chance of winning. Your lawyer is invested in the case and wants you to win. You might be wondering; can you get a loan from your attorney? The short answer is no.
If your lawyer gave you an advance on a settlement, they now have personal funds invested in the case, and may rush the suit or settle early if they end up needing the money back. In that case, if they settle early, they might accept less money than if they had no vested interest in your case.
It is also legally and ethically wrong for a lawyer to loan you money. They can even lose their license. A lawyer must have your best interest in mind and cannot get personally mixed up or caught up in the case. Once the lawyer is watching out for his own interests, he is no longer fighting for you.
There are times when your lawyer might lay out money for specific things directly related to the case, such as court fees, witness fees, money for depositions or to send evidence by overnight mail. But that is not actually a loan, it is considered a lawsuit advance and you will need to pay your lawyer back with the money you win from your case.
Although it is not allowed for your lawyer to advance you money, there are ways for you to borrow the necessary cash against your lawsuit in order to cover your most basic and essential living costs. Delta Lawsuit Loans knows the lawsuit cash advance business inside and out. The first step is to inform your lawyer that you plan to apply for a pre settlement loan. You will need your lawyer’s cooperation here, as the lawsuit loan company will need to speak directly to your lawyer about the details of the case. We will ask your attorney many questions about the case, including what they think are your chances of winning the case, how strong the evidence is in your favor, and how severe the injury.
Once it is determined how likely you are to win, and how much you are expected to get from the lawsuit, Delta lawsuit loan company will approve you for up to 50% of the settlement amount. It is a safe limit that protects our interests in the event that you don’t win the case.
Your lawyer then acts as the trustee in your loan, which is a guarantee that when you settle or win the case your lawyer will make sure that we get back the money we loaned you. The rest of the money will go to pay your lawyer’s fee, and you can then keep any money that is left over.
How Do Lawsuit Advances Work?
One you understand what a lawsuit loan is, you’ll know why it’s really safe to get one.
A lawsuit loan is not a cash advance. It acts like one, but with a cash advance you would be responsible to pay it back, and you would also have to give collateral. The reason it is so hard to get a traditional bank loan or a credit card is because banks have a strong interest in making sure that you as the lendee can pay back the loan. If you do not pay back a loan, such as on car payments or your mortgage, the bank will come and take those things away as repayment. And if you do not pay off your credit card, your credit score will be badly affected which will make getting any future loans highly unlikely for you.
When it comes to pre-settlement lawsuit loans, the legal term is actually a non-recourse loan. This means that the collateral for the loan is the settlement or lawsuit amount itself that you are borrowing against, but you will personally not be responsible to pay it back. Does that sound risky? You might be thinking, why would Delta give you a loan at all if you won’t have to pay it back?
The simple answer is, we only take on cases that are highly likely to win or to settle, and we only loan a portion of the projected win, not the full amount. If you don’t win the case, we don’t get any money and you are not responsible to pay us back.
If you want to get money before your settlement, it’s as simple as applying to Delta Lawsuit Loans and putting us in touch with your lawyer. We will talk directly to your lawyer to get the facts of the case, and if we decide your case has a good chance of winning, we can make sure you get the settlement money now, in 24 hours and sometimes even the same day. You don’t need to tell us how you plan to spend the money, that is entirely up to you, although most people use the money for medical bills or car expenses related to the accident, or even day to day food and living expenses.
The reason pre-settlement advances are very popular is that you may be anticipating a big payout on your personal injury lawsuit, but the case takes a long time to review, and lawsuits also take longer the more money there is at stake. That is because the defendant’s side will drag their feet or fight the evidence because they want to pay you as little as possible. You can stay strong and fight the good fight, letting your lawyer do everything he knows how to do to get you the highest amount he can, while also resting assured that you will have the money that you need to live on, now.
We do everything we can to make sure that you can get the pre-settlement loan amount against your pending lawsuit so that you don’t have to stress as you wait for the eventual money to get to you. You can relax and let the lawsuit take its course, knowing that you and your family are taken care of today.