Being involved in a personal injury lawsuit often means your finances are front and center in your thoughts. It’s natural to worry about covering your bills and daily costs. However, making decisions that might harm your financial situation in the long run can worsen matters further down the road. This is why keeping your financial health intact, without compromising your future, becomes crucial.
Finding a lawsuit loan that suits your needs could be a lifeline. It allows you to cover essential expenses while your case is still pending. However, not every option is created equal, and to qualify, there are specific criteria you’ll need to meet.
Remember, gaining clarity on these prerequisites for pre-settlement funding is the first step toward securing the financial support you need to maintain your livelihood without compromising the potential benefits of your lawsuit outcome.
Understanding Pre-Settlement Funding Eligibility Criteria
When you apply for pre-settlement funding, the funding company’s underwriter will examine the following main 9 aspects of your lawsuit to determine if you qualify for a lawsuit loan:
1. Your Case’s Strength
Settlement funding companies have legal experts who assess the merits and the risk associated with your lawsuit to make a wise investment. Not only does your lawsuit have to be already filed, but they look at the likelihood of a favorable outcome. The stronger your case, the more likely you’ll find a company willing to back you up.
2. Your Lawsuit’s Value
Think of your lawsuit as part of your financial profile. Just as a good credit score can open doors to larger traditional loans, a lawsuit worth over $50,000 can pave the way for larger legal funding approvals. Your case value doesn’t only tell a story; it shows the lender your chances of a larger successful outcome, which in turn, reflects your ‘caseworthiness’ in their eyes.
3. Legal Representation
Having an attorney significantly adds weight to your application. Pre-settlement loan companies see it as a sign of serious lawsuits, which improves your odds of getting the green light. Consequently, if you wish to be eligible for funding, your attorney is required to not only provide detailed information about your claim, but to also engage actively by signing the contract once funding is approved.
4. Medical Treatment
If your lawsuit involves personal injury, the level of medical treatment you’ve undergone speaks volumes. Intensive treatments, like surgery or injections, not only reveal the severity of your injuries but also boost your likelihood of receiving approval. This detail is critical because it also directly impacts how much you’re offered. More extensive medical interventions often lead to larger funding amounts.
Reccomended: Need Surgery Lien Funding? Learn More Here.
5. Case Type
Your type of lawsuit is just as important as its value and the treatment you’ve received. Funding companies specialize in a range of case types that have historically shown strong outcomes, including personal injury cases such as medical malpractice or wrongful death, or civil rights cases like wrongful imprisonment. By specializing in these eligible case types, legal funding companies can better assess the potential risks and rewards of funding your lawsuit.
Recommended: See the cases that typically qualify for a lawsuit loan.
6. Settled Cases and Appeals
Funding companies often consider providing support for cases that have already reached a settlement. This means if your lawsuit has been settled in your favor, you might still qualify for funding, which can help manage your finances until the settlement funds are disbursed.
However, it’s important to note that if a settled case is under appeal — meaning the other side has challenged the settlement in court — most lenders will hesitate to fund it. This is because appeals can significantly delay the payout and add some doubt to the outcome, making it a much riskier for companies to step in.
7. An Insured Defendant
The insurance status of the defendant in your case is a key piece of the puzzle. It’s essential that the party you’re suing has insurance coverage, as this is a direct indication of their ability to cover your damages or injuries. This factor reassures the lender’s underwriters of a possible recovery source, which in turn, enhances your application’s appeal.
8. State Eligibility
Due to varying regulations and laws governing legal funding across the United States, legal lending companies exclusively cater to clients in states where these financial advances are permitted or unregulated. If you find yourself in a state where pre-settlement funding faces strict regulations or isn’t allowed, it might limit your access to the immediate financial support that could be the difference between securing a fair settlement or feeling pressured to accept a lowball offer.
Recommended: See the states that Baker Street Funding funds.
8. Background Checks
Reputable lenders look at your criminal background to ensure there are no factors that could jeopardize the case or the funding agreement. Particularly, plaintiffs with a history of financial crimes or serious crimes might not qualify with some lenders. Think of it as a way for the funding company to check that everything is in order with your application, and thus, make a safe bet on supporting your case.
9. Company Policies on Funding Limits
When you explain to a funding company why you need the money — for example, to support your family due to serious injuries — this can impact their decision to offer you more and potentially larger advances. However, keep in mind, some funders set limits on how much more money they can give based on what they’ve already provided.
Say you’ve already received $100,000 from a company within six months. In this case, getting an additional pre-settlement loan might not be available unless your situation is particularly unique. And, if the company’s policy caps at $100,000, you might have to look elsewhere for extra support or consider different financial solutions.
Remember, while the amount of money lenders are willing to give often relates to your lawsuit’s expected outcome, not every company operates the same way. Some may offer additional funds down the line, but others may not, depending on their policies and your case’s specifics.
The Repayment Process: Simple and Risk-Free
While awaiting the resolution of your case, you might feel the financial strain, despite your attorney’s reassurances. Legal funding can offer financial breathing room, so that you don’t have to rely on borrowing from friends or maxing out credit cards to make ends meet.
Understanding eligibility for a lawsuit loan is the first step toward securing the financial support you need. This type of advance is a non-recourse legal funding, which means you’re not risking your assets, credit history, and no repayment if your case doesn’t pan out as expected.
Pre-settlement funding offers a simple solution to obtain the necessary funds quickly. Once your case concludes, whether through settlement or trial, the repayment occurs.
How Repayment Works for You
Getting approved with Baker Street Legal Funding means quick relief is on its way — typically, funds arrive in your account within a day. We get that the thought of repaying might bring a bit of worry, especially if you’ve encountered less-than-fair practices before. Our approach to repayment, though, is built around transparency and your financial safety.
Here’s how it smoothly unfolds: After your legal battle concludes and your attorney collects the awarded funds, they’ll first settle our agreed amount. Following that, your lawyer’ll deduct attorney fees, and the remainder — your compensation — is yours entirely.
It’s worth noting that effective legal representation not only enhances your settlement prospects but also simplifies the financial logistics post-victory.
No Success, No Repayment: Our Guarantee
The path of litigation is unpredictable, and not every case ends with a win. But amidst this uncertainty, one thing remains clean: should your case not result in a financial award, you owe Baker Street Funding nothing. Our pre-settlement legal funding model is designed to bear the risk, freeing you from the worry of repayment in such scenarios. This setup allows you to concentrate on your case’s progression with your attorney, without the added stress of future financial obligations hanging over you.
Ready to Qualify for Legal Funding?
Managing your finances while waiting for a legal settlement can feel like an uphill battle, with every day bringing its own set of challenges. Even though your attorney keeps you in the loop about your case’s progress, it might feel like the finish line is nowhere in sight. It’s one thing to hear words of encouragement, but quite another when you’re the one stretching every dollar, possibly borrowing money or using credit cards, just to cover basic needs.
Here at Baker Street Funding, we get it — the financial squeeze can be tough. That’s why we’ve made our application super simple and fast. Just a minute of your time, and you could have anywhere from $1,500 to $2 million in your hands by this time tomorrow.
Join the thousands of personal injury victims who’ve found ethical financial assistance through our services. With our competitive, non-compounding rates capped in the third year, we’re here to support you every step of the way.
