TriMark Legal Funding has been providing fast, risk-free lawsuit settlement loans to injured plaintiffs nationwide since 2003.
If you’re a plaintiff in a current legal case, chances are you’ve heard of settlement loans – also referred to as lawsuit loans or lawsuit advances. It’s not uncommon for plaintiffs in personal injury, workplace injury, or other lawsuits to struggle financially while their case is ongoing. Settlement loans are one financial solution available to plaintiffs who find themselves in this situation.
Despite the name, a lawsuit settlement loan is unlike your typical loan. It is a cash advance provided by a lawsuit funding company on an expected settlement or verdict.
Once you file a lawsuit, a funding company agrees to provide you with a certain amount of money, which you only repay if you collect a settlement or damages from a verdict. The amount of money you receive in the pre-settlement advance is based on the funding company’s estimated value of your lawsuit’s claim.
Settlement loans are available for plaintiffs in many different types of cases.
Why Might You Need a Settlement Loan?
Settlement loans are a relatively new financial solution that provides plaintiffs access to money while their lawsuit is still ongoing. Many reasons individuals seek sources of funding during a lawsuit include:
Day-to-Day Expenses
Everyday expenses don’t stop just because a lawsuit hasn’t wrapped up yet. Due to their injuries, plaintiffs often face a loss of employment and extra medical bills for the duration of their case. Meanwhile, they still must pay their everyday expenses, such as:
- Rent/Mortgages
- Utilities
- Educational expenses
- Car payments and more
These obligations can become a struggle if the plaintiff has lost income or has extra bills coming in from doctors and hospitals, which could result in possession repossession, eviction, and more. Settlement loans give plaintiffs money to pay for essentials when they need it, so they don’t have to wait for the lawsuit to conclude.
Financial stresses during litigation can result in dire financial consequences like evictions, foreclosures, or vehicle repossessions.
Medical Bills
If a plaintiff has filed a lawsuit having to do with their personal health (i.e., personal injury, car accident, or medical malpractice case), likely, they are also dealing with medical bills for past or ongoing treatment. Pre-settlement loans help ensure that plaintiffs can continue receiving the medical care that they need.
Loss of Employment
Plaintiffs often file lawsuits due to a workplace injury or dispute. Consequently, it is common for plaintiffs to struggle financially during the pendency of their lawsuit because they lose their job. Lawsuit loans help you bridge the gap between the time you lose your job and finding your next opportunity or the conclusion of your lawsuit.
Inability to Access Other Sources of Funding
Plaintiffs may be unable to access other financial lifelines like traditional loans, which require good credit history and lots of paperwork. However, you don’t need good credit history to secure a pre-settlement loan because it’s not considered in the application process.
Furthermore, trustworthy pre-settlement funding companies can often get you your advance quickly, sometimes in as little as one day.
Finally, when you apply for a settlement loan, you are essentially borrowing funds against the future payout you anticipate receiving from your lawsuit. However, if, for whatever reason, the lawsuit is not settled in your favor, you won’t have to repay the money to the funding company. This is why settlement advance loans are called “non-recourse” loans.
How Does the Lawsuit Settlement Loan Application Process Work?
Settlement loans are a relatively new funding option. To help keep clients adequately informed, we’ve put together this step-by-step explanation of how to apply.
- Find an Attorney and File the Lawsuit
To obtain a lawsuit advance, you must first file the lawsuit, requiring the help of a qualified attorney. The attorney will file the lawsuit on your behalf in either state or federal court, depending on your claims.
Many lawyers take cases on a contingency fee basis. This is especially common in some instances, such as personal injury or medical malpractice cases. In a contingency fee arrangement, the attorney agrees to represent you for a percentage of the settlement or damages awarded after a verdict. While the contingency fee will vary by case, this percentage is typically around a third of your recovery.
- Start the Application Process
Contact a lawsuit funding company to get started with your application. At TriMark, before we fund a case, we evaluate the pending lawsuit and determine a possible settlement range. Our funding offer represents a percentage of the expected settlement amount.
To apply, you typically need to provide contact information for both you and your attorney. The lawsuit funding company will then contact the attorney directly to discuss the case.
- Review the Funding Proposal with Your Attorney
Next, the funding company will provide documentation regarding your funding offer. Carefully review this documentation with your attorney to make sure you understand the terms of the agreement. The documentation will explain that if your case settles successfully or you receive a favorable verdict, you will repay the legal advance plus the agreed-upon interest and fees.
- Accept the Proposal and Pursue Your Case
A reputable funding company should not interfere with how your case is managed. At TriMark, once you accept the funding proposal, we have no further involvement in the case until it is settled or a verdict is rendered. During that time, you and your lawyer control your case and settlement negotiations.
Are You Ready to Apply for a Settlement Loan?
Lawsuit settlement loans are tools with many uses for plaintiffs who need financial help. They can help plaintiffs avoid going into debt or severe financial consequences. Plus, they allow plaintiffs the freedom to settle when they choose, not because they are forced into it by monetary reasons. When you wisely choose your funding company, obtaining a settlement loan is one way to remove stress and financial distractions, allowing you to focus on your case and get back to your life.
At TriMark, it is free to apply for a settlement loan, and you are under no obligation to proceed just because you apply.
So why wait?
What are the Benefits of Settlement Advance Loans?
While every plaintiff’s situation is different, there are significant benefits of pre-settlement loans for many individuals:
- Eases financial worries: With a lawsuit loan, you may be able to avoid going into debt while you wait for your lawsuit to end. A settlement advance can be used for any purpose, such as rent, mortgage payments, childcare, car payments, groceries, or educational expenses.
- More time to negotiate: Having financial security, thanks to a lawsuit loan, means that you don’t feel pressure to accept a low-ball settlement offer. With a settlement loan, you can feel confident that, even if your case takes longer than you hoped, you won’t have to give in early due to financial pressures.
- Lower risk: Since they are not truly “loans,” settlement advances do not have to be repaid if you lose your case. You also are not required to put up your home, car, or other personal property as collateral.
- Speed of access: Compared to traditional loans, settlement loans are usually faster and more convenient. Some companies can provide the advance within 24 hours.
Settlement advances do not have to be repaid if you lose your case.
