Legal funding companies look closely at a variety of factors to see if a person qualifies for a lawsuit loan.
Normally, these are severe injuries that require time off work.
It must be clear from the legal funders perspective that the defendant has a strong liability for causing the damage. In other words, it should be apparent that the defendant is at fault.
Insurance/Ability to Pay:
Having the ability to pay means the defendant has insurance coverage. Typically, a pre settlement funding company will not fund a case without insurance coverage.
Attorney on Contingency Fee:
The attorney on your case must be paid on a contingency fee basis. The attorney like the legal funding company must be compensated from the proceeds of the case.
Sufficient Investment Margins:
When a lawsuit funding company decides whether to give you an advance on the case, they weigh what other expenses will be paid out by the proceeds of your settlement. Most likely, the funder will do a public records search to see if there are any other liens or encumbrances against the case.
Although lawsuit loan companies don’t care if you have bad credit they will check to ensure the applicant isn’t in bankruptcy.
If your case is approved, the legal funding company will make you an offer of roughly 10-15% of the expected settlement of your personal injury lawsuit.
Receiving a car accident loan on a pending lawsuit is both complex and simple.
The underwriters or liquidity providers are those legal funding companies or investors that are willing to advance personal injury loans to claimants whose injury claims possess sufficient merit. The legal funding companies do this in exchange for the right to a position of the expected future proceeds of the settlement or award.