Multiple Lawsuit Loans Are Often Needed
If you’ve already received an advance on your case, it is likely you will be eligible for additional funding. Of course, how much depends upon the specifics of your case. In this post, we examine the use of multiple lawsuit loans and how to go about getting multiple lawsuit loans on your case.
What are Lawsuit Loans?
A pre-settlement loan, also known as a lawsuit loan, legal funding or settlement funding is a special type of financial support for plaintiffs involved in pending litigation. Pre-settlement loans are not technically loans but rather cash advances against pending lawsuits.
These transactions are designed as an assignment of property rights in the future proceeds of a case. Because of this, lawsuit loans are not repaid if the underlying lawsuit is not successful. Thus, they are often referred to as “non-recourse” financing and a risk-free way for litigants to access much needed cash.
How Lawsuit Loans are Used
Lawsuit loans are used as a financial lifeline for plaintiffs who encounter financial strain during the litigation process. Delays in lawsuit justice are a feature in a system which tries to balance the ability of citizens to resolve disputes and the costs to administer justice.
The most popular lawsuit loans are personal injury loans – advances to injured plaintiffs who are sometimes unable to work due to injuries. Lawsuits take time to resolve. Many plaintiffs must wait years to receive compensation. Settlement loans are commonly used to pay for:
- Rent or housing
- Groceries
- Utilities and other living expenses
- School Tuition
- Transportation Costs
- Business or Investment Opportunities
- Medical Treatment
- Surgeries
- and more . . .
Although most plaintiffs use the money as described above, there are no restrictions on the use of lawsuit loans. Any uses are acceptable, if decided upon by the plaintiffs themselves.
Why Use Multiple Lawsuit Loans?
In many instances, plaintiffs require multiple lawsuit loans. Can plaintiffs get multiple settlement loans? They absolutely can and for a variety of reasons. Two of the more common reasons why plaintiffs get more than one lawsuit loans are:
Need More Money
Finances can be tricky and what is needed at one moment can change quickly. For this reason, plaintiffs who need more money can and do apply for multiple lawsuit loans. These can be structured as one-time advances or done on a periodic basis.
Monthly Expenses
In many instances, plaintiffs are unable to earn the same amount of money as before their lawsuit commences. Many are unable to meet monthly expenses and are forced to look for liquidity solutions to bridge the gap. In these cases, multiple lawsuit loans can be set up as monthly stipends (i.e. monthly payments made to cover monthly expenses).
Multiple lawsuit loans provide plaintiffs with the ability to endure a sometimes long and drawn out litigation process. Even better news is that there is extreme flexibility for plaintiffs to access cash from their lawsuit. Lawsuit funding is a largely unregulated marketplace. Thus, lawsuit “lenders” can be creative in their efforts to solve plaintiffs’ cash flow problems and turn a profit themselves.
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What Makes More than One Lawsuit Loan Possible?
There are two questions which must be answered in order to qualify for multiple lawsuit loans. The first is, how much is available to advance on a particular case? A general rule is ten percent (10%) of the estimated lawsuit value. This figure is an industry standard and only a general rule of thumb. It is designed to offer the support each plaintiff needs but also allow the plaintiff to receive a meaningful amount of money from the remaining settlement, even after repayment of the advance, legal fees, and other costs are considered.
The second question is, how much is each lawsuit worth? And that answer depends upon the facts of each particular case. The question is answered by lawsuit funding underwriters who are legal professionals and in the business of analyzing risk in common lawsuit types. They tend to be conservative in their estimates but the art of underwriting is very subjective.
Qualification for multiple lawsuit loans involves analyzing:
- The likely settlement value
- The expected duration of the case
- Available insurance coverage
- Amount of damages caused
- The likelihood of success
Based upon this analysis, underwriters will set a ceiling on the maximum amount of funding available as the lawsuit is situated at the time. As long as the request for multiple lawsuit advances and/or lawsuit loan buyouts are at or below this threshold, the funder will likely approve the request.
How to Apply
The process of obtaining a pre-settlement loan is simple.
- Fill out the Quick Application on this web page or call us at 888-964-2224.
- We contact you shortly to discuss your case.
- Once you are pre-qualified, we discuss your case with your attorney.
- If your case is approved for cash advance, we prepare a document for your signature.
- Once executed, you are funded via overnight courier or EFT (electronic funds transfer).
Final Thoughts
Lawsuit loans are useful tools for plaintiffs in need of financial support during the litigation process. Lawsuit funding is flexible and this flexibility allows the best lawsuit funding companies to be creative in the financial solutions they offer clients. Multiple lawsuit loans are one such solution.
Thank you for your interest in Fair Rate Funding.
