Top Reasons Why Plaintiffs Get Denied for Lawsuit Funding

lawsuit funding

When you’re involved in a lengthy lawsuit, your cash flow may run low as your stress runs high.

While your attorneys spend months negotiating a settlement, your bank account plummets. You may worry about paying your bills and wonder where to find funding for a lawsuit.

We have a simple lawsuit funding suggestion. During this long settlement process, you can apply for a lawsuit cash advance.

You may have some questions about a settlement advance.

  • What is a settlement advance?
  • How do you qualify for a cash advance?
  • Why would you get denied funding for a lawsuit?

Keep reading for answers to common lawsuit funding questions.

What is a Settlement Advance?

A settlement advance involves you borrowing from your future settlement award.

The simple process follows these four steps:

  • You apply with a lawsuit funding lender.
  • The lender talks to your attorney about the merits of your case.
  • The lender informs you if you qualify for a lawsuit cash advance.
  • The lender delivers your cash advance within 24 hours.

You don’t pay back your lawsuit advance until you receive your settlement award. If you don’t win your lawsuit, you owe nothing on your lawsuit cash advance.

How Do You Qualify for a Cash Advance?

Lawsuit cash advances differ from other loans.

For traditional loans, lenders qualify the borrower based on credit score and income. Instead, for lawsuit funding, lenders evaluate the borrower’s potential settlement.

Lenders gain the confidence to fund your lawsuit if they think that you are likely to win a substantial settlement.

After you apply for a settlement advance, the lender investigates your potential to win a settlement award. The lender calls your attorney to see where your case stands.

From this communication, the lender wants to learn a few things about your case:

  • How likely are you to settle?
  • When are you expected to settle?
  • How big of a settlement should you receive?

These case factors determine whether you qualify for a lawsuit cash advance.

Why Would You Get Denied Funding for a Lawsuit?

If a lender denies you a cash advance funding for your lawsuit, you probably feel disappointed. You may wonder what factors lenders evaluated before denying you funding.

There are several reasons why a lender may decide not to fund your lawsuit cash advance.

Cash Advances Violate State Law

Most states allow lawsuit cash advances. However, there are a few states that prohibit this form of financial assistance. Currently, three states ban settlement cash advances:

  • Maryland
  • Colorado
  • Tennessee

If you live in one of these three states, a lender cannot provide you a lawsuit cash advance. Even if you have a strong case, state law prohibits a lender from offering you an advance.

You Don’t Have an Attorney

A lender needs to speak to your attorney before offering a lawsuit cash advance.

If you don’t have an attorney, the lender cannot make an informed decision on your loan.

Even if you present a strong case, the lender needs to understand where you stand legally.

Hiring an attorney increases your settlement potential and settlement amount significantly.

A lender insists that you hire an attorney because the lender wants you to have the best chance at winning your case.

Hire an attorney to expedite your case and your potential for a settlement cash advance.

Most personal injury attorneys work on a contingency fee, meaning that you don’t have to pay your attorney up-front.

The contingency fee varies by the attorney. You should read your attorney-client contract carefully to make sure you understand contingency fee details.

A lawyer working on contingency wants your case to settle for as much as possible.

This motivation should make an attorney work even harder for you.

Consult several attorneys, and sign on with the one who seems like your best advocate.

You Have Other Funding

If you already have a cash advance, that doesn’t automatically disqualify you from obtaining a new settlement advance.

The second advance functions as a lower interest refinance on the previous settlement advance.

However, if you owe more than a lender thinks your settlement is worth, the lender won’t issue another advance.

After all, the lender needs to believe that you can pay back the advance.

Lenders don't issue a predetermined cap on cash advances because each case is unique.

Each advance depends on the settlement potential of the associated lawsuit.

If your previous advance balance falls below your potential settlement, a new lender could offer you another cash advance.

Get Pre-Settlement Funding Now

Even if a lender has denied your settlement advance before, we will give it a second look.

Some of the factors that disqualified you previously may have changed.

If you need cash while you wait for your lawsuit settlement, call us at (800) 760-0704 or apply today!

How to Find the Best Lawsuit Loan Companies

| Read Time: 3 minutes

If you need financial stability while waiting to settle your lawsuit, you’re probably aware that there are several pre-settlement loan companies who want a portion in exchange for a cash advance. It is essential that you know how to separate the best pre-settlement loan companies from the deceptive ones. The lender you choose has an impact on the amount of money you receive from your settlement, so it’s very important to do research into potential lenders to make sure the company you choose is a good fit. Here’s how to find the best lawsuit loan companies for your case. Best Lawsuit Loan Companies Below is a list of the top 10 settlement loan companies to compare when shopping around for lawsuit funding. Click on each lawsuit loan company to read about reviews around the web. Make sure to consider all of your options. Ally Lawsuit LoansPeachtree Financial SolutionsOasis Legal FinanceThe Legal Funding GroupBuckeye Legal FundingPrime Case FundingMomentum FundingFair Rate FundingCase CashCherokee Funding Top 5 Questions to Ask a Lawsuit Loan Company While looking for the best lawsuit funding companies, it is important to ask each lender questions that help you gauge the potential cost of the loan. Asking these questions will help you choose the best lawsuit pre-settlement loan company. #1: How Do You Set Interest Rates on Pre-Settlement Loans? The best lawsuit loan companies determine interest rates on a case-by-case basis based on the strength of each case. Interest rates largely depend on the likelihood of your case resulting in a good settlement or verdict. Do not work with a pre-settlement funding company that charges the same interest rate for every customer. #2: What is the Interest Rate for My Pre-Settlement Cash Advance? When you get an offer for pre-settlement funding, a lender should tell you upfront what your interest rate is before you sign paperwork. The best lawsuit funding companies will usually give you an interest rate between 1-3% monthly. If a lender gives you a rate higher than 3%, consider looking for another offer. #3: What Are the Terms and Conditions of the Loan? Since filing for a lawsuit is very overwhelming, the terms and conditions of pre-settlement funding should be simple. The best settlement loan companies offer clear, concise terms and conditions for their loans. Never work with a lender that refuses to answer questions about the terms of your loan. #4: Will You Discuss My Funding Application With My Lawyer? Before you get a pre-settlement loan, you need to be represented by a lawyer and have a lawsuit filed on your behalf. The best lawsuit loan companies will always ask to speak to your lawyer about your case when you apply for funding. Your lawyer gives the lender information about your case to assist in case evaluation and underwriting. #5: How Quickly Will I Get My Pre-Settlement Cash Advance? Since reputable settlement loan companies don’t require a credit or background check, most lenders transfer money to you within 24 hours of approval. Why You Should Choose Ally Lawsuit Loans If you are trying to find the best lawsuit loan companies, consider funding from Ally Lawsuit Loans. At Ally Lawsuit Loans, we understand how difficult it is to maintain financial stability during a lawsuit. We provide legal funding for those waiting on their settlement for cases ranging from personal injury to workers’ compensation. Lowest Rates Guaranteed No matter what type of case you have, we guarantee the lowest rate in the industry. If you find a low-interest rate while searching for the best pre-settlement loan companies, we will beat it. Risk-Free Our loans are 100% risk-free. That means if you don’t win your case or get a settlement, you pay us nothing. Quick and Easy Application Assuming your case is a good fit, we send you a cash advance within 24 hours of application approval. Contact a Reputable Settlement Loan Company Today If you need a risk-free, low-interest rate loan to keep your head above water while waiting for a settlement, give Ally Lawsuit Loans a call today at 844-545-6246 or apply now. We offer the lowest interest rates in the industry and provide cash advances within 24 hours of approval.

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Are Car Accident Settlements Taxable?

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If you receive a settlement from a personal injury case involving a car accident, you might be wondering if you owe any taxes on your settlement earnings. According to the IRS, if you receive a settlement due to physical injuries or sickness and don’t take an itemized deduction for medical expenses due to the injury, your settlement isn’t taxable. However, there are some exceptions to this rule depending on the details of your personal injury case. So, are car accident settlements taxable? In this article, we will explore the different factors in your case that affect the taxability of your settlement earnings. What Portion of My Car Accident Settlement is Taxable? Your car accident settlement might be taxable in certain instances. The type of compensation the IRS finds taxable in personal injury cases includes: Lost wages;Damages due to emotional distress;Punitive damages; andInterest earned on a settlement. Since lost wages replace what you would have earned working, the IRS considers this type of compensation as regular wages. In fact, the IRS taxes compensation for lost wages similarly to regular wages. However, if you receive multiple years of lost wages in your settlement, you might be taxed as part of a different tax bracket. For example, if you usually earn $30,000 per year and you receive $90,000 of lost wages in your settlement, your federal tax bracket changes from a 12% income tax rate to 24%. What Parts of My Car Accident Settlement are Tax-Exempt? Usually, compensation for physical injury isn’t taxable in a car accident settlement. Whether you settle your case before or after filing a lawsuit, you don’t have to pay taxes on your settlement earnings.  Generally, any damages you recover as a result of an injury or illness aren’t taxable at the state or federal level. This includes pain and suffering in many cases. How to Reduce Your Car Accident Settlement Tax Obligation If you work with an attorney, you might be able to reduce or even eliminate your tax obligation. To reduce the amount of taxable earnings in your settlement, ensure that you classify your damages carefully.  You might also consider exploring structured settlements instead of a lump sum settlement. Since structured settlements split your compensation into multiple installments, you may be able to exclude some of your settlement earnings from your current tax year. Need Help Paying Bills While Waiting for a Settlement? Apply for Funding Through Ally Lawsuit Loans Today If you sustain injuries in a car accident, you might not know how to keep financially afloat while you recover. While waiting for your personal injury settlement, expenses like medical bills, attorney’s fees, rent, and more might pile up, especially if you can’t work. If you ever find yourself in this position, consider pre-settlement legal funding from Ally Lawsuit Loans. Our loans give plaintiffs peace of mind while they wait for their lawsuit to settle. Not only do we guarantee the lowest rates in the industry, but we also offer risk-free funding. If you don’t win your case, you don’t have to pay us back. If you would like to apply for a lawsuit loan or want to know if your potential car accident settlement is taxable, give us a call at 844-545-6246. We deliver cash to applicants within 24 hours of approval.

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Hit and Run Lawsuit Loans

| Read Time: 2 minutes

Like any accident, hit-and-runs leave a devastating impact on your physical and financial well-being. If you sustain injuries from a hit-and-run accident, you might need help paying for medical treatment or other living expenses while you recover. Thankfully, pre-settlement funding can help you keep you financially afloat while you wait for your hit-and-run lawsuit to settle. Here’s what you need to know about hit-and-run injury claims and how a lawsuit loan may help. What to Do If You Are a Victim of a Hit-and-Run If you ever get hit by a driver and they flee the scene, immediately contact the police. When the police find the suspect, you may file a claim against their insurance company. However, if the police cannot find the driver, you must file a claim with your auto insurer.  In the event of a hit-and-run accident, you should follow these steps to ensure your safety and build your case: Call 911 and request an ambulance if you are injured;Try to write down as much information as you can about the suspect’s vehicle including the model, year, color, and license plate number;Get checked out by a doctor even if you don’t have serious injuries to make sure you don’t have any internal injuries;Take photos of the scene, including your injuries and damage to your vehicle;Record statements from potential witnesses who saw the accident; andContact a personal injury attorney before speaking with the insurance company. If you end up filing a hit-and-run lawsuit, this information may help strengthen your claim. Do not take any blame for the accident or allow the insurance company to take a recorded statement. They might use this information to lower or completely deny your claim. Check Your Insurance Policy for Uninsured Motorist Coverage Make sure you check your auto policy to see if you have uninsured motorist coverage (UIM). This type of coverage typically covers damage you or your car sustains in a hit-and-run accident, especially if police cannot catch the suspect. This portion of your policy also covers medical treatment costs, lost wages, and other damages if you have injuries. Apply for Legal Funding Through Ally Lawsuit Loans Today We understand how difficult it is to recover after suffering injuries in a hit-and-run crash. Often, these injuries put you out of work, causing bills to pile up as you receive treatment. At Ally Lawsuit Loans, we provide pre-settlement funding to plaintiffs who cannot wait for their hit-and-run lawsuit to settle. Our risk-free loans provide cash to you for a variety of expenses while you recover, including rent, groceries, medical bills, legal fees, and more. Most importantly, you don’t have to pay back the loan unless you win your case. If you have any questions about our hit-and-run lawsuit loans or would like to apply, give us a call at 844-496-6446. We guarantee the lowest interest rates in the industry and provide cash to approved applicants within 24 hours.

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