If you are in the middle of filing a personal injury claim and suffered a loss of income due to your damages, you might need additional funding to help pay for your personal expenses. You may have already searched the internet, trying to figure out ways to help take care of your bills.

There is a chance that you already came across legal funding, such as a pre-settlement loan. You may also wonder if your lawyer can deny you access to qualifying from this loan.

If you want to learn more about your lawyer’s role in your pre-settlement funding and if they can deny your loan application, you will want to check out this article. This brief guide will go over important information about your pre-settlement loan and who you can reach out to for more details.

Qualify for Your Pre-settlement Loan

Legal funding, also known as certified funding or a pre-settlement loan, is a loan you can obtain from your pending lawsuit settlement amount. These loans differ from bank loans because they do not require you to have an excellent credit score to receive your pre-settlement loan.

Another added benefit is if you lose your personal injury case, you won’t have to pay back this loan. You will need to meet two main essential requirements before you qualify. You will need to have an attorney and an active personal injury claim.

When you start your process, you will need to input your contact information and attorney’s information. While you recover from your injury, the pre-settlement loan company will deal with your attorney about your personal injury case information.

Can My Lawyer Deny My Pre-settlement Loan?

Your lawyer cannot deny your pre-settlement loan, nor can they stop you from applying for one. They can try to steer you from using this loan type, but that is the most they can do. Some lawyers may not cooperate with these lending companies, but they are more than willing to cooperate for the most part.

Do I Need My Lawyer?

As mentioned earlier, you will need to have a lawyer representing you for your personal injury case. This is because these legal funding companies need access to certain specifics of your case to ensure that your case will win.

Pre-settlement loan companies only back cases where your victory is likely because they cannot recoup the money they lent to you if your case does not win. This is because the IRS classifies legal funding as non-recourse debt.

Since legal funding is considered non-recourse debt, the company that lent you the money only can obtain repayment for your loan from your lawsuit settlement. If your lawyer denies giving the information that the lending company needs, they are, in a sense, denying the funding you need.

Pre-settlement Loan Process for Lawyers

Even though your lawyer can deny providing the information to the legal lending company, most lawyers cooperate. Most lawyers know that these personal injury cases can take months, if not years, to settle.

Although your lawyer might be able to advance your funds to cover the costs directly related to your case, they cannot loan you money for personal reasons. An ethical rule bars lawyers from providing their clients with money for their personal expenses.

Lawyers are very familiar with how pre-settlement loan companies work, and they understand that these loans can serve as a lifeline for their clients.

Most lawyers provide the necessary information to these legal funding companies so that their clients can have the money they need to keep themselves afloat while they litigate their cases. Legal funding will give your counsel the time they need to negotiate the strongest settlement for your case.

I Got Denied a Pre-settlement Loan

If you get denied the funding you need for your pre-settlement loan, you may be able to re-apply at a later time. There is a possibility that your case has not progressed enough for a legal funding company to take on your case.

It is not uncommon for a funding company to want the court to establish that the other party was at fault for your case before disbursing funding. This reduces the legal funding company’s risk exposure.

How the Pre-settlement Loan Process Works

As stated earlier, it is best to have your attorney on board before you start the process of applying for a pre-settlement loan. This will help ensure that you and your lawyer are on the same page, which will expedite the process.

On the application form, you will need to input your personal contact information and the name and contact of your lawyer. Since the pre-settlement loan is tied to your settlement amount instead of your credit score, they most likely won’t ask for your financial history.

Once you apply for the loan, the loan company will reach out to your attorney. They will need your lawyer to release relevant documents that support your case.

The loan company will make sure to keep your information confidential. Based on the severity of your injuries and the strength of your case, the lending company’s underwriting team will determine if they can approve you for the pre-settlement loan.

If so, they will give you a dollar figure. Most lending companies will only lend you up to 20% of the settlement. You can use the money to pay for your living expenses, medical bills, and whatever else you need to pay to keep you and your family afloat.

Apply for Your Loan Today!

Obtaining a pre-settlement loan for yourself is not only necessary to help you get the money you need to take care of your personal needs, but it also helps your lawyer focus on properly litigating your case.

If you need to apply for a pre-settlement loan, contact us now to start the process and get your cash now. Once approved for your loan, you can expect your funds within 24 to 48 hours.