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Montana Lawsuit Funding[flexy_breadcrumb]
Lawsuit funding is a relatively new product in the market, and it is transforming the lives of many individuals who face financial crisis as they await settlement of their claims. If you have been researching on lawsuit loans, you might have come across some mixed reviews.
While some people may have deep pockets to sustain them through court processes, others don’t. In fact, most of the people cannot access regular loans because of either bad credit or lack of collateral. Their hope to survive lies on lawsuit funding.
What is lawsuit funding?
A lawsuit loan allows a plaintiff to borrow money from a lawsuit funding company against a future lawsuit settlement. The companies advance the money to their cash-strapped clients who are in urgent need of money to pay their bills and remain financially afloat as they await compensation from a lawsuit they filed. These loans can be issued against several cases that include car and motorbike accidents, bus and truck accidents, work-related injuries, premises injuries, wrongful termination of a contract or employment, amongst others. Lawsuit loans are better than typical bank loans for several reasons. They include:
It is easy to qualify
Unlike traditional bank loans, it is easy to qualify for a lawsuit loan. This is because the only thing the lender need from you is to ensure that you have a strong case. This will give them the confidence that you will receive a settlement. This is a great win for you because you don’t need to repay the loan if the case doesn’t succeed. In the case you choose to borrow from banks, they will lend you money against collateral like a home. Even when you don’t win your case, you will still be responsible for paying back the loan, with interest.
No collateral required
Lawsuit lending companies do not ask for a hard guarantee to lend money. The only collateral they need is a strong case that’s likely to get huge compensatory rewards. These companies employ qualified underwriters whose work is to analyze individual cases to determine their eligibility. Since it’s a high-risk business, lenders will only approve cases that have high chances of receiving a settlement.
No credit checks
Most of the lenders will need a nearly perfect credit score before they can approve your loan application. Most of the people can’t access money from these lenders because they have a poor credit rating. However, you can access lawsuit even with a bad credit score. The lenders are not interested in your ability to repay the loan because they have set their eyes on the lawsuit settlement. Furthermore, lawsuit loans are different from the typical bank loans and hence they are regulated by different underwriting rules. This means that these loans do not affect your credit rating.
Straightforward application process
The application process for lawsuit loans is simple and easy. The best part is that it can be done online. Individuals who want to apply lawsuit loans should have a pending lawsuit and an attorney to represent them in an injury claim. Once you have filed the application form, the lender will contact your attorney to request for relevant documents and inquire additional details about your claim. The underwriters will review your case and determine how much they can lend against your claim settlement. Once you agree on the terms of the loan, the lender will disburse the money to your account the same day.
What factors determine your eligibility for a lawsuit loan?
Before approving your funding request, most lenders examine several factors, including your attorney’s ability and legal experience. The lender may conduct background checks to look out for pending bankruptcy proceedings, criminal record, and prior advances. Any prior issues that may affect the outcome of your case could prompt the lender to reject your funding application.
If the lender rejects your loan application, it doesn’t necessarily mean that you have a weak case. Sometimes, the lender may reject your application either because you requested for a large amount or because your claim is almost due for settlement.