If you file a lawsuit, you may find yourself waiting several months or even years for an appropriate settlement. Unfortunately, this leaves many plaintiffs financially unstable, especially if a claim-related injury prevents them from working.
When you find yourself in this situation, a cash advance on a pending lawsuit could help.
Pending settlement loans or pre-settlement loans help plaintiffs regain financial independence while they wait for a settlement.
Here are five facts about pending lawsuit loans that other lenders don’t want you to know.
#1: Pending Lawsuit Loans Are 10-20% of Your Case Value
Typically, most lenders disburse a cash advance on a pending lawsuit equal to 10-20% of the settlement value.
They determine this amount based on the severity of your injuries, the length of your case, and your own estimate.
To get the best estimate, discuss the value of your potential settlement with your attorney before applying for a pending lawsuit loan.
#2: Lenders Put High-Interest Rates on Pending Lawsuit Loans
There are sharks in the lawsuit loan industry who charge upwards of 200% interest.
Don’t select a lender that charges more than 1-3% monthly or 12-36% annually.
Only take out a cash advance for a pending lawsuit that covers basic living expenses and necessities.
#3: Pending Lawsuit Loan Brokers Have Expensive Service Fees
Always avoid working with brokers that deal with direct loan companies.
These brokers usually add 15-20% to the cost of your pending lawsuit loan.
They also send your case information to dozens of companies who may call your attorney without your consent. This unnecessarily diverts your attorney’s attention from your case.
#4: Lenders Cannot Disburse Pending Lawsuit Loans Until They Review Case Documents from Your Attorney
Make sure you collect the following case documents from your attorney prior to applying for a pending lawsuit loan:
- Medical reports;
- Police reports;
- A copy of your complaint; and
- Your demand letter.
Most lenders request this information from your attorney when reviewing your application.
To save time waiting for your cash advance on a pending lawsuit, prepare these documents before you apply for a pending lawsuit loan.
#5: Attorneys Respond to Lenders Faster If You Talk to Your Attorney Before Applying
Always give your attorney a heads-up before applying for a pending lawsuit loan.
This helps them prepare documents requested by the lender. Since lenders cannot disburse your cash advance until they review your case, you should keep your attorney and your lender in sync.
Related: Lawsuit Loans Without an Attorney
Contact Ally Lawsuit Loans About Applying for a Pending Lawsuit Loan Today
If you need a cash advance on a pending lawsuit to help with bills or living expenses, contact Ally Lawsuit Loans. We have the lowest interest rates in the industry and review applications within 24 hours.
In addition, we work on a contingency fee basis, which means you repay nothing if you lose your case.