Many plaintiffs who are involved in personal injury lawsuits are unaware that they may be able to get a cash advance on their settlement BEFORE their case actually settles. It’s called lawsuit funding or pre settlement funding and also goes by a variety of other names too; personal injury settlement loan, lawsuit loan, litigation funding, legal funding, legal finance, settlement loan, pre settlement funding, litigation financing, non recourse funds for plaintiffs or lawsuit cash advance.

1. What is a “Lawsuit Loan”?
Well, for starters it isn’t really a loan. ‘Lawsuit loan’ is a term that’s in common use, but technically speaking, what we actually provide are non recourse, contingent cash advances against pending personal injury lawsuit settlements.

Lawsuit funding is NOT a loan because it has no set repayment term, no set repayment schedule and no monthly payments like a loan does. And repayment of a lawsuit cash advance is not absolute like a loan either; it is contingent upon the successful outcome of the plaintiff’s lawsuit. Non recourse means that if you lose your lawsuit or your case doesn’t settle, you DO NOT have to repay the money that was advanced to you. And unlike a loan, pre settlement funding approval is based solely on the merit of the case, NOT on a plaintiff’s credit score, debt-to-income ratio, present income, assets or employment history.

From an investment standpoint it is one of the riskier, more speculative types of investments. From a plaintiff standpoint, it can be a real lifesaver for people who need money now and have nowhere else to turn.

2. Why would someone need “Pre Settlement Funding”?
It’s pretty common for people involved in personal injury lawsuits (called plaintiffs) to get behind financially. It makes sense if you think about it. After all the very nature of ‘personal injury’ implies that they’re hurt, often severely, which means they’re unable to work and thus, aren’t receiving a paycheck. Emergency funds get exhausted, credit cards fill up and they need somewhere to turn.

Their pending personal injury settlement can be a large asset, but it’s a future asset; certainly one that banks won’t accept as collateral for loans. That’s where specialized investors like TriMark Capital Funding, Inc. can fill the gap. We recognize the latent value of future personal injury lawsuit settlements and can help plaintiffs who need money right now by leveraging a small portion of that future asset.

3. Is there a maximum ‘settlement loan’ or ‘lawsuit loan’ amount?
It depends on your case. How much money you can get as a cash advance on your personal injury settlement depends on the particulars of your case, the severity and permanence of your injuries, the level of the defendant’s liability and the defendant’s insurance coverage, just to name a few of the variables. For pre settlement funding and lawsuit cash advances we will normally go up to about 10% to 15% of the anticipated settlement amount. Our minimum settlement funding amount is usually $1,000 (we can go lower on a case-by-case basis) and the maximum amount available on a single case is usually limited to $500,000 but we can go higher than that on a case-by-case basis if necessity warrants and the case supports it.

4. Who is eligible for a Lawsuit Funding Advance?
If your attorney is paid on a contingency basis and you are the plaintiff in any type of workers compensation, class action lawsuit, serious personal injury (emphasis on serious; we do not fund on minor injury, frivolous or ’soft tissue injury’ cases) or wrongful death lawsuit then chances are good that you may qualify for a lawsuit cash advance or legal funding. Typical cases include personal injury, serious car accidents, serious motorcycle accidents, slip and fall injuries, premises liability, asbestos mesothelioma, traumatic brain injury (TBI), spinal cord injury (SCI), medical malpractice, commercial litigation, wrongful death, workers compensation, class action lawsuits and much more. You can click here for a complete list of eligible case types.

5. What are the biggest benefits of lawsuit funding?
Time and peace of mind. Since your bills and financial obligations will be paid, lawsuit funding can buy you the peace of mind you’ve been lacking since your financial hardship began. And when you have peace of mind you can concentrate on getting better. And pre settlement funding can buy your attorney the time they need to properly develop your case to it’s full potential and negotiate the largest, most appropriate settlement possible so you get full value for your case.

6. Do I need to have good credit to qualify?
No, lawsuit loans or pre settlement funding is based solely upon the merit of your case – not on your credit score or employment history. The only exception is if there is a pending bankruptcy. Besides that, you could have bad credit and no employment and still qualify for legal funding.

7. Why not just get a bank loan instead?
If you can get a bank loan, by all means, get one. The trouble is most people can’t because they lack qualifying collateral and usually have damaged credit because of their financial hardship. Non recourse lawsuit funding is more expensive than conventional financing (bank loans for example) due to the increased risks incurred by the investor and should be considered a “last resort” financing option only.

8. Will the defendant, their attorneys or their insurance company be notified?
Absolutely not! Pre settlement funding cash advances are 100% confidential and very discreet. The ONLY ones who will know that you got a lawsuit cash advance are you and your attorney.

9. Can’t my attorney just lend me the money I need?
Unfortunately not. The American Bar Association expressly prohibits attorneys from loaning money to their clients for anything other then case-related expenses specifically to prevent a conflict of interest from arising.

10. What will my attorney say about lawsuit funding and will he/she have to give up control of my case?
Attorneys are normally sympathetic to the financial strain their clients are undergoing. They will probably advise you that lawsuit funding is expensive as compared to a bank loan for example and should only be considered as a last resort. This is true (see #7 above for more details) and any good lawsuit funding company will be very forthcoming about this.

And NO, your attorney will NOT have to give up control or management of your case. We have no interest in taking over your case or interfering with how your attorney is handling it. Applying for legal funding does NOT interfere in any way with the agreement between you and your attorney and it also does NOT interfere with your attorney receiving his fees when the time comes either.

You can learn more about Lawsuit Funding at www.LawsuitLoanHQ.com.