When you’re in the middle of a lawsuit, time can feel like another one of your enemies. You’re waiting for justice, and that wait isn’t free. The bills and expenses keep stacking up while your case slowly progresses through the legal system.
That’s where lawsuit loans come in. This guide will break down everything you need to know about this type of funding, and how to make the right choice for your situation.
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What Is a Lawsuit Loan?
While the term has “loan” in it, it’s not your typical loan. You’re not borrowing money from a bank based on your credit score. Instead, you’re receiving a cash advance based on the expected outcome of your lawsuit.
It’s technically called non-recourse funding and is often referred to as “pre-settlement funding” as well. This means:
These features make lawsuit loans especially useful for people who are injured, out of work, or simply stuck waiting on a long and complex lawsuit.
Who Can Qualify?
Just because you have an active case doesn’t mean you automatically qualify for a lawsuit loan.
Some common types of cases that do qualify include:
As long as you have a similar pending lawsuit, are represented by an attorney, and are expecting a settlement, you are likely eligible for it. Just make sure to look for providers in your state. If you’re in California, for instance, look for lawsuit loans California to avoid any issues later.
How Does the Process Work?
Here’s a step-by-step look at how to get a lawsuit loan with a provider like USClaims in your state:
And when your case settles, the lender is paid directly from your settlement. If you lose, you don’t owe anything.
How to Choose a Provider?
When researching lawsuit loans in your area, don’t skip anything and dig deep before making a final decision.
What you should do is:
