Lawsuit loans are a simple solution for plaintiffs in a financial bind. Since filing a lawsuit can be both mentally and financially exhausting, a lawsuit loan alleviates financial burdens so that a plaintiff may readily pursue their case to a fair settlement. A lawsuit loan differs from a typical bank loan in that money awarded to the plaintiff is given based on the perceived value of their settlement and not upon previous financial history.
Plaintiffs exploring the option of a lawsuit loan will naturally take measures to find the right lender for them and their needs. Likewise, a lawsuit loan company is looking for the right kind of cases to invest their money. Information required of a plaintiff during the initial application process is relatively standard, but worth mentioning for those plaintiffs new to the lawsuit loan approval process. Here are four general areas that every credible lawsuit loan application will inquire about as a means of assessing you as a client and your case as an investment:
1. General Information about you, the plaintiff, your attorney, and the defendant against whom you have brought your claim. Most important to this section will be the state where the plaintiff and the defendant reside, and where, presumably, the lawsuit will be adjudicated. Lawsuit loans are handled differently in each state and the laws in some states make it incredibly difficult for plaintiffs to be awarded a lawsuit loan. Without this basic information, a lender could not possibly give the kind of valued assessment that each client deserves.
2. Description and information about your accident (e.g., whether it involves workers compensation) and medical treatment the plaintiff has sought out as a result of their injuries. Here your lawsuit loan provider is looking for strong liability on the part of the defendant and clear damages that are supported by medical professionals. Since lawsuit loans are determined on a case-by-case basis, it is the information provided in this section that will be the most significant indicator of whether a plaintiff qualifies for a lawsuit loan.
3. Liens or other potential factors that could affect the final settlement of your case. This section would include questions about whether you receive Social security, Medicare benefits, or public aid benefits. In addition, liens include whether you pay child support or have filed for either Chapter 7 or 13 bankruptcy. These types of liens may lower the value of your lawsuit loan, simply because they need to be paid first out of a final settlement. Additional loans taken out on your case will also factor into your application assessment, since your lawsuit loan provider will need to buy out these loans in order to supply you with a new one.
4. Lastly, the application process will ask you how much you are looking to borrow against the final settlement of your case and for what purpose you intend to spend it. Above all, your lawsuit loan provider is looking to assist you in making the most informed, strategic choices regarding the pursuit of your claim. Working with a lawsuit loan company, a plaintiff will be given candid advice about how best to utilize their funds while waiting out the best settlement possible.
The application process does not guarantee funding, but it is a step in the right direction towards securing your financial future and preparing to fight for the best possible settlement.
About the Author: 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 www.smpadvance.com.