Settlement Loans – Getting Funded

Great! My case qualifies for a settlement loan. What does that mean? More importantly, of the cases that “qualify,” how many actually obtain settlement loans? What makes the difference?

Lawsuit Funding is an interesting industry. As I search the landscape of cases that may qualify for lawsuit loans, as both a healthcare provider and an attorney, I can assure that most applications submitted for pre-settlement loans fall into the abyss-of-denial. Why?

Quite simply, many individuals seek settlement loans who have virtually no discernible losses. Individuals who are unable to document losses (e.g., injuries, finances, etc.) are not going to obtain funding. As the saying goes, “Period. End of story!”

It’s very easy to file a lawsuit. However, a “great gulf is fixed between” filing a lawsuit and obtaining funding. Never forget, the defendant is not likely to readily agree to the liability you wish to assign. Insurance carriers are not going to readily acquiesce to demands for settlement. Cases unlikely to prevail in the underlying litigation have little chance of obtaining settlement loans.

To get funded, remember, it is your responsibility to accurately document the actual harm imposed and the defendant’s liability. Hence, the need, in almost all cases, to retain competent legal counsel.

Frequently, plaintiffs come to us requesting lawsuit loans in pro se cases. Such cases are those brought by plaintiffs without legal counsel. A key fact to bear in mind when pursuing settlement loans, “No attorney, no funding!” Most lawsuit funding entities are not sufficiently foolish to place hopes of prevailing in the litigation for which funding is sought on the acumen of a pro se litigant.

In Law, the following adage is frequently echoed: “The attorney who represents himself/herself has a fool for a client.” This is generally true for attorneys and almost certainly true for lay-plaintiffs vying against defendants, insurance company defense attorneys et al.

Those pursuing settlement funding must also be prepared to proffer expert opinions/testimony that clearly establishes a mechanism that would likely produce the injuries claimed. Illustrative of this point is a recent case filed with Legal Settlement Loans regarding “toxic mold.” The case is dead-in-the-water unless and until reputable expert testimony/opinion is proffered.

Getting funded relies principally on these three key factors: (1) retain competent legal counsel; (2) reserve lawsuit loans for cases in which demonstrable injuries exist; and (3) be prepared to produce requisite expert testimony, either by way of reports or depositions/affidavits, to establish a credible nexus between the incident to which injuries are attributed and injuries resulting therefrom.

Many companies that offer settlement loans provide no guidance to applicants in ways to enhance their chances of obtaining lawsuit loans. Litigation funding experts specialize in finding the right pre-settlement loans for their clients. Additionally, they will assist them in obtaining lawsuit funding as quickly as is reasonably possible.