Getting an advance on a lawsuit is relatively straightforward but can appear complicated as these types of lawsuit loans are often misunderstood and somewhat different to traditional loans.
The main rules of getting an advance on your lawsuit are outlined which address the most common issues that people come across when attempting to get a lawsuit cash advance. collection laws in California
1. You need to have a pending lawsuit in order to get a lawsuit cash advance.
2. The amount that you can borrow depends on the expected value of your case. In general, you could expect to receive up to 10% of the value of your case.
3. There are no upfront fees when obtaining a lawsuit loan. The only time that you are expected to make a repayment is when your case has settled and you have received your settlement money. Until then there are no monthly fees or repayments
4. There is nothing to repay if you do not win the case like mentioned above, the only time you pay anything is if and when you actually win the case.
5. Rates can vary between lawsuit funding companies so it is important to get the best rate and you can check to make sure that you are not being charged any extra fees. Some companies may charge you a broker fee, which can be avoided if you apply to a direct lender.
6. It is important that you let your attorney know that you are looking to get a lawsuit advance. They will need to supply the lawsuit funding company with information regarding your case.
7. A lawsuit loan cannot be obtained from you attorney due to a conflict of interests. This is why lawsuit lending firms have been set up to act as an independent third part who does not have any influence on the case.
8. Many different cases qualify for a settlement loan including car accident cases, motor bike accidents, pedestrian accidents, slip and fall, construction falls, wrongful death, wrongful arrest and product liability.
9. Getting all of the documentation in order will considerably speed up the process. The main things that are needed can be obtained from your attorney, so it is important that they are aware that someone will be contacting them to discuss the case.
10. An advance on your lawsuit can be applied for online or by phone. It is often not necessary to visit the funding company – the application is simple and can be done over the phone.