One of the first questions you may ask a Lawsuit Loan Company is: “How much can you lend me?” There are several factors that help determine just how much you can borrow against your case or claim. These factors vary between Lawsuit Loan Companies. However, there are some general rules or policies that most Lawsuit Loan Companies follow when assessing how much you will be able to borrow. First, what is the value of your case? Most Lawsuit Loan companies will not lend you more than 10% to 15% of your case/claim value. For example, if you case is worth a total of $10,000, you will most likely be able to borrow from $1,000 to $1,500. Since most Lawsuit Loans are for cases that have not settled yet, the case value is determined by review of the case information sent by your attorney. Please note that the value determined by the Lawsuit Loan Company may differ from the case value your attorney suggested or the insurance policy limit. Each Lawsuit Loan Company has its own system for determining the case value. Second, do you have any large liens attached to your case/claim (other than medical bills and lost wages)? Although medical bills and lost wages directly related to your case may actually raise the case value, certain liens will significantly lower it. For instance, a large lien for child support would lower your case value, in the eyes of the Lawsuit Loan Company, by the amount of that lien, as would a lien from a Federal Bankruptcy Court Trustee. Since your share of the settlement will be lowered by these liens, the amount that you can borrow will very likely be significantly reduced. Finally, have you already taken out a Lawsuit Loan with another company? In most cases, this will reduce how much you can borrow. If the amount that you owe (with interest) is over the 10% to 15% threshold, you will most likely not be able to obtain another Lawsuit Loan. Also, you cannot stack loans from different Lawsuit Loan Companies. If you were to obtain a loan from another company, the new Lawsuit Loan Company would have to buy out your prior Lawsuit Loan before giving you additional funds. If you have a prior loan that is lower than the previously stated threshold, the new Lawsuit Loan Company would buy out the old loan (interest accrued to date included) on your behalf and give you additional funds over that amount. Steven Medvin is the Executive Director of SMP Advance Funding, LLC, which provides lawsuit funding to individuals who need a lawsuit loan for pending lawsuits. For more information please visit: https://www.smpadvance.com.