If you are having trouble going through your whole lawsuit litigation, chances are you considered getting lawsuit settlement funding. However, this whole thing might seem a little confusing and many people have misconceptions about these loans.
One of the biggest misconceptions people have about lawsuit settlement funding is that everyone can get it, but this is not true, there are certain conditions that applicants need to meet to get cash.
With the help of industry experts like Direct Legal Funding, we are going to talk about the conditions that need to be met to qualify for these loans.
Having an Attorney
Most companies that give this kind of loan want their clients to come with their lawyers by their side. Simply put, lawyers can quickly explain everything and negotiate terms more effectively. It is also a good idea that the attorney is paid with a contingency fee agreement.
This means that the attorney will get paid from the settlement and that if it doesn’t work in your favor, neither of you will get paid. This way, everyone will work hard to help win the settlement, as it works in their favor.
Which Cases Qualify for Lawsuit Loans?
Different companies give loans depending on different cases. However, most professional companies give lawsuit loans, as well as cash advances on car accidents, compensation for employees, personal injuries, and property damage.
There are no other types of lawsuits where these kinds of loans are eligible, so don’t try to get them. You need to ensure that your lawsuit is covered by the company you are talking with or you will only be wasting your time.
The Other Party Needs to Be Able to Pay
Settlements don’t guarantee you money, even if you are sure that you will win. In some situations, the other side might have no money and even though the ruling went in your favor, the court cannot force the person on the other side to pay you money.
You will have to go through an exhausting process where you will evaluate their belongings and deliver the court list of things that you want to get as compensation. This is why most funding agencies will not give loans in cases where the other party doesn’t have insurance that can cover their expenses.
Your Attorney Needs to Sign the Contract
The funding transaction needs to be signed by the official legal representative and the agency providing the loan. This provides security to both sides so that there are no scams or abuse. Even if the funding company doesn’t require an attorney to be present during negotiation, it’s still necessary to have one sign your papers.
These are the essentials that most serious legal funding companies require before you can get a loan from them.