Receiving a denial for your pre-settlement loan application can be disheartening, especially when you’re relying on these funds to make ends meet. However, a rejection doesn’t mean it’s the end of the road. There are several steps you can take to address any weak spots and boost your chances of getting approved for pre-settlement funding next time.

By understanding the reasons behind the rejection and making necessary adjustments, you can strengthen your application and turn a “no” into a “yes.” Here’s what you should do next.

Actions to Take If Your Pre-Settlement Funding Application Is Declined

Shop Around for Different Pre-Settlement Funding Companies

If one lender denies your application, it doesn’t mean another will. Different companies have different criteria, so keep applying. For instance, if your application was denied due to your type of lawsuit, there might be a lender who’s open to funding your specific case type.

Have a Heart-to-Heart with Your Attorney

If your attorney isn’t responsive or cooperative, it’s time to have a serious conversation. Explain the importance of their cooperation in your legal funding application. If your lawyer continues to be unwilling to help, you have the option to walk away and find a new law firm that can better support your case.

Get Further Medical Treatment Required

If you’re recommended for surgery or additional treatments, follow through with them. Skipping these can lower your medical bills and reduce the value of your lawsuit. Receiving the recommended medical treatment demonstrates the severity of your injuries and can improve your chances of approval.

Complete Your Documentation

When documentation is incomplete, gather all the missing medical records, police reports, and other relevant documents. Submit them to the funder to paint a clear picture of your lawsuit.

Investigate Additional Compensation Sources

Ask your attorney to investigate additional insurance policies or assets that the defendant might have. He or she might hire investigators or financial experts to uncover these sources. Discuss other potential compensation avenues with your attorney to strengthen your case.

Continue Developing Your Case

Keep building your case and reapply when it’s further along. Providing updates, undergoing additional invasive treatments, and submitting new evidence can demonstrate progress and make your application stronger.

Provide Detailed Medical Evidence

If you have pre-existing conditions, gather detailed medical evidence to show how the accident exacerbated those conditions and that your injuries are a direct result of the incident. Work with medical experts to provide opinions and testimonies that support your claims.

Reevaluate Your Case Narrative

Ask the lender why your application was denied. Clarify any inconsistencies with additional documentation or testimony and reframe how your case was presented by your attorney. If key evidence was missing, gather those strong points and include them in a revised submission.

Gather Character References

Obtain statements from colleagues, employers, or community leaders to support your credibility and reliability. For instance, if you were injured on the job, ask your co-workers to testify about what they saw.

Apply for a Smaller Funding Amount

Requesting a smaller amount might improve your chances of approval as you can appear less risky. However, approval still depends on a comprehensive evaluation.

Be Transparent and Honest

If you initially made an error or omitted information in your application, contact the lender and clearly explain your financial situation and lawsuit details. Transparency can increase your chances of getting approved later by building trust with the lawsuit funding company.

Seek Mediation Services

Consider asking your attorney if using mediation can resolve parts of your case. Mediation can make your case more attractive to funders by demonstrating a proactive approach to resolution.

Reapply if You Receive a Settlement Offer

You can reapply for pre-settlement funding if you receive a reasonable settlement offer. This increases your lawsuit’s winning potential in the eyes of lenders.

Seek Alternative Sources of Funding When You’ve Been Denied Pre-Settlement Legal Funding

If you’ve been denied pre-settlement funding, consider alternative sources of financial support. One option is a bank loan, but be aware of the terms and fees, such as interest rates, repayment terms, and prepayment penalties. Assess your ability to repay the loan realistically, as defaulting can harm your credit score.

Here are some other options to explore:

Personal Loans and Credit Cards. These can provide quick funds but come with high-interest rates and fees. Use them cautiously to avoid accumulating debt.
Home Equity Loans or Lines of Credit: Using your home as collateral is another option. You’ll need to make regular payments until the loan is paid off, though, so consider this option carefully.
Financial Assistance from Family or Friends: While it might be uncomfortable, many families support each other during tough times. This option often comes with flexible repayment terms.
Local Charities or Non-Profit Organizations: These organizations may offer financial help during your lawsuit. This support typically doesn’t require repayment unless explicitly stated.
Crowdfunding: Platforms like GoFundMe can help raise funds from a larger community, but success varies and might require significant effort to promote your cause.

Additionally, look into budgeting and money management resources available online. These services can help you manage your finances during litigation, without accruing additional debt.

The Takeaway

Even if you’ve been denied a pre-settlement advance before, it doesn’t mean you’re out of options. Denials can happen for many reasons, but understanding why can help you avoid the same pitfalls when you apply again.

Remeber, speak with your attorney, gather complete documentation, and consider other compensation sources. Also, exploring different lenders and applying for smaller amounts might improve your chances. And, if you receive a settlement offer or make significant case progress, reapplying could turn a previous “no” into a “yes.” Alternatively, you can explore options like personal loans, financial assistance from family or friends, and crowdfunding to help you manage expenses during your lawsuit.

For a fresh start, consider applying with Baker Street Funding to see how we can provide you with the support you need. No credit checks, no risk, only pay us if you win. Apply for a cash advance against your legal case today.