Pre-settlement funding has become a popular way for individuals involved in lawsuits to get some much-needed financial assistance. These loans can provide plaintiffs with the money they need to cover living expenses and other overhead costs while they wait for their lawsuits to go to trial. However, many people are unsure how many lawsuit advances they can take out or how the process works.
If you’re wondering, “how many pre-settlement loans can I get?” you should read on. We will explain everything you need to know about pre-settlement funding and answer some of the most common questions people have about it.
What Are Pre-Settlement Loans?
Also known as lawsuit funding or litigation funding, these are cash advances given to plaintiffs in personal injury cases. The loan is given in exchange for a claim to the plaintiff’s expected settlement.
If the plaintiff wins their case, they’ll use the money from the settlement to repay the loan plus interest. Should the plaintiff lose their case, they’re not required to repay the loan. Pre-settlement funding can be used for various expenses, including unexpected bills, living expenses, and legal fees.
This widespread applicability sometimes makes an additional advance a vital lifeline.
Benefits of Pre-Settlement Funding
Before we get into how many lawsuit advances you can take out, let’s look at some of the pros of a pre-settlement loan.
One of the biggest benefits is that it can quickly give you access to a much-needed cash advance. If you’re finding it challenging to make ends meet while your case settles, a pre-settlement loan will provide you with breathing space.
Another benefit is that pre-settlement funding is easy to qualify for. Unlike a traditional bank loan, which can require a good credit score and a steady income, pre-settlement funding only requires that you have a pending personal injury case.
Lastly, pre-settlement funding is non-recourse, which means you are not required to repay the lawsuit loan if you lose your case. This setup takes a lot of the financial risk off your shoulders and can give you the peace of mind you require as you wait for your expected settlement.
Can You Get Multiple Pre-Settlement Loans?
The quick answer is “yes.” You can get multiple lawsuit advances. In fact, many plaintiffs choose to seek additional pre-settlement funding as it can provide the financial stability needed during the lawsuit.
However, it’s vital to note that each case is unique, and some factors will affect how many lawsuit advances you can take out. For example, the amount of pre-settlement legal funding you request for each loan and the length of time your case is expected to take will impact how many loans you can qualify for.
It’s also crucial to remember that having multiple legal funding agreements will likely mean paying more in interest and fees. As such, it’s important you only take out as many loans as you need and only borrow an amount you are comfortable repaying.
If You Received Your Initial Pre-Settlement Loan from Us
If you already have a pre-settlement loan with us and your case is still ongoing, you may be eligible to take another pre-settlement loan. We understand that lawsuits can sometimes drag on longer than anticipated and that plaintiffs may need more financial assistance as a result.
With that being said, we will need to review your case again to see if you qualify for another pre-settlement loan. We will also need to assess how much cash you are requesting and how long your suit is expected to take. Once we have all the right data, we can decide whether you can take out another loan.
Should you qualify for another pre-settlement loan, we will work with you to get the cash advance you need as quickly as possible. We understand that when dealing with a lawsuit, time is of the essence, and you may need the cash advance immediately.
If You Received a Pre-Settlement Loan Elsewhere
If you received a pre-settlement loan from a different legal funding company, you might still be eligible for a lawsuit loan from us. Our underwriter will need to review your case via a quick application process and determine whether you meet the criteria for a loan with us.
Should you qualify, we will settle your previous lawsuit loan from the other lender and provide you with the needed legal funding. As a legal funding company, we understand that dealing with multiple lenders can be stressful, so we will take care of everything for you.
We settle outstanding lawsuit loans to avoid your case being overfunded, which can lead to problems. Our goal is to ensure you get the funding you need without risking your case.
Why Would I Need a Second Lawsuit Loan?
Aside from “how much pre-settlement funding can I get,” one of the most common questions we hear is, “why would I need a second lawsuit loan?” There are several reasons why you may need to take out a second pre-settlement loan, even if you have already received one. These include:
Your Case May Be Taking Longer than Anticipated
Understandably, most plaintiffs want their cases to be over as quickly as possible. However, the fact is that some cases drag on for months or even years. If your claim takes longer than anticipated, you may run out of money to cover living expenses and other costs. Additional pre-settlement funding can provide you with the financial stability you need during this time.
You May Have Unexpected Expenses
Even if your personal injury claims are progressing as planned, unexpected expenses may come up that require pre-settlement lawsuit funding. These could include:
- Medical bills
- Travel expenses
- Legal fees
If you’re in this position, a second or even a third loan can help you cover these costs.
Your First Loan May Not Have Been Enough
Sometimes, the amount you received from your first loan may not be enough to cover your expenses. This occurrence is especially common if your case is taking longer than initially anticipated or if you have unexpected costs.
If this is the case, more money can help you make ends meet. It can also give you the financial breathing room to focus on your case and get the best possible outcome.
You Have Difficulty Finding Work or Can’t Work as Much
Injuries resulting from accidents can sometimes make it difficult to find work or to work as much as you did before the accident. You may find yourself struggling to make ends meet. If this is the case, a second loan can help you cover your living expenses and other costs. It can also provide you with the financial stability you need during a difficult time.
All in all, there are many reasons why you may need to take out a second loan. Should you find yourself in this position, ensure you clearly understand the terms of your loan and only borrow what you need. This approach will keep you safe from predatory companies.
Can I Apply for an Additional Pre Settlement Loan from a Different Legal Lender?
Absolutely! If you need more money, you can apply for an additional lawsuit loan from a different lender.
Before doing so, we recommend that you:
- Review the terms of your existing loan, including hidden fees
- Speak with your lawyer to see if taking out another loan is the best option for your case
- Compare the charged interest, fees, and repayment terms of the total loan
Once you’ve gone through this process, you can determine whether taking out another loan is the right choice.
In most cases, the second lender will “buy” the first lender’s position. This setup means that the second lender will take over the first lender’s claim to the proceeds of your case. The first lender will be paid off, and you will only have to make one payment to the second lender.
Each lender has a cap on how much they’re willing to lend. How much you’re able to obtain will depend on the strength of your case and the amount of cash you’ve already borrowed.
While this process may seem confusing, consulting a seasoned legal funding professional can help make it simpler. They can take you through the process and help you find the best option for your case.
What Can You Do If a Lending Firm Rejects a Request for Additional Funding?
There are some reasons why a lender may reject a request for additional funding. In most cases, it’s because the borrower has already reached the maximum amount they’re able to borrow.
Nonetheless, there are other reasons why a lender may reject a request for additional funding. These could include:
- The borrower has a history of defaulting
- The borrower has already received a large amount of cash from other lenders
- The case is not progressing as planned
- The borrower’s lawyer is not cooperating
If you’re already in this state, don’t despair. There are other options available to you. Reach out to Stonewood Funding to learn more. We can help you identify the funding you need.
How to Take Out a Second Pre Settlement Loan
Taking out a second lawsuit loan is much like taking out the first. In most cases, the application process will be simpler since you’ve already gone through it once before. This process involves the following steps:
Step 1: Apply
Borrowers need to fill out an application. More often than not, you can do this online or over the phone. The process is quick and easy.
Step 2: Review
Once we’ve received your application, we’ll review it and get back to you with a decision.
Step 3: Get Funded
We’ll work with you to get you more funding as quickly as possible if approved. We understand that time is a factor in these situations.
Remember that most legal funding companies have different requirements. As such, we recommend that you review the terms of your loan carefully before taking out additional consumer legal funding.
What If I Can’t Repay My Lawsuit Loan?
You will never be put in this situation. Your obligation to pay for your funding is anchored solely on your ability to win your case. If you don’t win, you owe nothing, and if you do win, your attorney will pay off all obligations before releasing your settlement. Either way, you’re in the clear.
Apply Now for an Additional Pre Settlement Loan
A lawsuit advance can be a great way for an injured victim to get the cash needed to cover costs during litigation. However, it’s paramount you understand the process before taking out an additional loan. This insight will help you make the best decision for your case.
At Stonewood Funding, we’re here to help. We offer pre-settlement funding to qualified plaintiffs across the country. To get an additional lawsuit loan, apply online or call now. We’re here to ensure you have the money you need to pursue your legal claim properly.