Can an Auto Accident Passenger Apply for a Lawsuit Loan?

car accident passenger lawsuit loan

If you were in a car accident as a passenger and did not cause the accident, you are entitled to compensation for the damages you suffered.

Your medical bills, any lost wages, and physical pain and anguish are all recoverable damages after a car accident.

All you have to do is seek the right compensation from the right party.

Sometimes you can recover the entirety of the damages you are owed by filing a claim with the responsible party’s insurance provider.

However, this is not always the case. You may need to file a lawsuit to fully recover the damages you suffered. Insurance policies cover only so much.

If your damages exceed the responsible party’s insurance limits, you probably need to file a car accident passenger lawsuit to recover those damages.

Lawsuits Can Take a Long Time: A Lawsuit Loan Can Help You Weather the Storm

Lawsuits aren’t typically resolved overnight. If you are struggling financially due to the extra expenses of the accident, this can pose a major problem.

Knowing that individual plaintiffs often face financial struggles, powerful parties—including insurance companies—sometimes try to exploit those struggles.

They do so by making settlement offers that don’t fully compensate you for your total damages. When they do this, they are betting that you are in such a desperate financial situation that you will accept any offer they make. 

With a car accident lawsuit loan in your pocket, however, you can weather the financial storm. You can take care of your immediate financial needs and hold out for the best possible offer.

That way, you get—as a passenger in a car accident—the compensation you deserve. We at Ally Lawsuit Loans offer some of the best car accident lawsuit loans in the industry.

At Ally, we want you to have the information you need to make an informed decision, so we put together this quick guide to help you decide whether a car accident passenger lawsuit loan is right for you.

Requirements

Anybody who applies for a loan has to meet certain criteria. The same applies to lawsuit loans.

Lawsuit loans, including those for car accident passengers, have different requirements from other loans like car leases and mortgages.

For those more traditional loans, you need to show that you can pay the loan back by proving your income, total assets, etc. In contrast, the requirements for applying for a lawsuit loan are much simpler.

To qualify for pre-settlement funding with Ally Lawsuit Loans, all you have to do is submit one simple application. We don’t ask for your employment or credit history because this information is irrelevant for our purposes.

Instead, aside from your contact information and your attorney’s name, you need to show us just two things on your application:

  1. You currently have an attorney working on your behalf and
  2. Your lawyer has, at the time of your application, filed a lawsuit in court.

That’s it. All you have to do is prove to us that you are currently filing a car accident lawsuit against the responsible party with the help of your attorney. 

When we review your application, we will contact your attorney, verify the details of your case, and gather more information.

To decide whether we can give you a loan, we look at your case’s chances of success. We use this information, along with the total damages sought in your case, to determine how much we can loan you.

A lawsuit loan can never exceed the maximum potential award. 

How Do Car Accident Lawsuit Loans Work?

Now that you know how to apply for a lawsuit loan and how it can benefit your claim, we need to go over how these loans work. Unlike a traditional loan, taking out a lawsuit loan is a relatively risk-free proposition. Let us explain why.

Recourse versus Non-Recourse Loans

We can set lawsuit loans apart from other, more traditional types of loans by explaining the difference between recourse and non-recourse loans. Recourse loans are the types of loans we noted above: mortgages, medical loans, and automobile leases.

When someone defaults on a recourse loan, the lender can seek repayment by seizing or otherwise repossessing almost any of their assets. That’s because with a recourse loan the collateral is the entirety of a person’s wealth.

The same is not true when it comes to lawsuit loans, which are a form of non-recourse loans. Unlike recourse loan agreements, non-recourse loan agreements lay out specific items or assets as collateral.

In the event of a default, the lender can seek repayment only through those specified assets. With a lawsuit loan, the specific item of collateral is the lawsuit’s eventual settlement or jury award.

That means that if you lose or fail to settle your case out of court, the collateral ceases to exist. 

Thus, the practical result is that if you lose your case or fail to settle it out of court, you won’t have to repay your lender. This is why lawsuit loans are relatively risk-free.

Apply Today with Ally Lawsuit Loans

If you want to take care of your immediate financial needs and press on with your case until you get the settlement you deserve, get in touch with us at Ally Lawsuit Loans today.

At Ally, we pride ourselves on being one of the nation’s leading pre-settlement funding providers. There are a lot of lenders out there, and shopping for a loan is a daunting task.

Even after filling out multiple loan applications, you will have to go through any proposed loan agreement with a fine-toothed comb.

Unfortunately, not all pre-settlement funding companies are straightforward about their services.

It is not uncommon for a borrower to discover hidden fees and exorbitant interest rates after they sign the loan agreement. At that point, the damage is done.

If you want to skip the hassle of shopping around for a lawsuit loan, Ally has you covered. We offer the lowest interest rate in the industry, guaranteed.

So if you see a better deal, we’ll match it. Combine that with the fact that we will have your application back to you within 24 hours and you won’t repay us a single penny if you lose your case, and you have nothing to lose.

Maximize your settlement today with pre-settlement funding from Ally Lawsuit Loans!

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