Which Lawsuits Qualify?
Lawsuit loans are available as a cash advance to plaintiffs with many types of lawsuits. The most common lawsuits funded by a lawsuit loan are personal injury, wrongful death, medical malpractice, product liability, slip and fall cases, and many more. Car accidents with personal injury or wrongful death are one of the most common types of lawsuit that will qualify for lawsuit loan funding by a litigation finance company.
In fact, car accidents tend to offer some of the best and most competitive rates within the lawsuit loan funding industry. If a plaintiff has filed a lawsuit and entered into the litigation process a lawsuit loan may be an excellent choice. Most lawsuit loan companies provide pre and post settlement funding to plaintiffs.
Is it Really a Loan?
No. The funds available to a plaintiff are sometimes called a lawsuit loan but it is really not a loan at all. The funding is merely an agreement between funder and plaintiff with a contract for repayment at the time a settlement or verdict is reached. Unlike a typical bank loan, there is no credit check as the funding is based purely on the merits of the case and the likelihood the plaintiff will win. In addition, there are no monthly or regular payments required with lawsuit loans as the repayment is required at the time of settlement or verdict.
Pre-settlement lawsuit loans
A pre-settlement lawsuit loan is made prior to the verdict or settlement in the case. Car accidents with a lawsuit filed typically qualify for a pre-settlement lawsuit loan. If a plaintiff is going through the litigation process and finding it difficult to stay afloat financially, a lawsuit loan is a good option. The funding works to keep the case alive is pending the outcome of the case.
Post–settlement lawsuit loans.
Plaintiffs with car accident lawsuits recently settled can also obtain a lawsuit loan which is made pending the payment of the claim by the defendant. Since there can be a waiting period between the settlement and when the payment arrives a post-settlement lawsuit loan can help ease the financial burden and stress felt by a plaintiff.
Alliance Claim Funding is a respected litigation funding company, and well versed in the issues facing plaintiffs who have experienced a car accident. These litigation finance companies are sensitive to plaintiffs and work to swiftly review, evaluate and approve cases in need of lawsuit funding.