Lawsuit loan qualifications are actually quite similar across states and may differ somewhat by the provider you select. In general, reputable legal loan organizations will make the process as quick and easy as possible, focused on helping you meet your financial obligations during the lawsuit process. Here are some typical qualifications:
Plaintiff Must Hire Contingency-Fee-Based Attorney
These attorneys will work with you on your lawsuit and only get paid out of your settlement funds. If you lose your case, your attorney would not get paid. This minimizes the risk to you as a plaintiff, especially if you are already finding yourself in a difficult financial situation. If you cannot find such an attorney, your legal loan company may be able to provide a referral, or you can contact your state’s Bar Association for a list of contingency-fee-based attorneys.
Type of Case Must Qualify
Certain types of cases qualify for lawsuit loans including automobile accidents, personal injury, workmen’s compensation cases, slip, and fall injuries, and burn cases. Other cases such as the Jones Act, labor law, and tractor-trailer cases may also qualify. Even if your case is in the appeal process, some loan companies have special cash advances for those situations. Check with your individual state or loan provider to see if your particular case qualifies.
Ability to Obtain Settlement
The defendant in your case must have the financial means to pay a potential settlement. In many cases, this will be the insurance company of the defendant.
Typically, your attorney must approve the legal loan agreement with a signature. This gives you an extra assurance that another set of eyes has reviewed the agreement and found it sound and in your favor.
Lawsuit loan organizations work to level the playing field for plaintiffs. Defendants with deep pockets may not be in a hurry to pay out settlement claims, and lawsuits can drag out several months or years. As a plaintiff, you may be suffering injuries, have lost your job or taken a lower paying job, or have medical bills to contend with. The dire financial situation may lead you to accept a lower settlement in hopes of securing your payout earlier. By obtaining a lawsuit loan, you can pay your daily expenses without worrying about receiving the settlement check and allow your attorney to work through the process to obtain a fair settlement amount in the long-run.
Typically, lawsuit loans are only paid back if you win your case. Just like contingency-fee-based attorneys, these organizations don’t get paid unless you do, which reduces the risk of taking out a legal loan. In addition, most of these settlement loans offer very low interest rates so you are able to keep the bulk of your settlement.