Tag Archives: lawsuit loans

Lawsuit Loans and Other Common Liens

In a lawsuit, there may be several types of liens, other than Lawsuit Loans, that must be paid when the case settles, prior to disbursing settlement funds to the plaintiff.

Attorney’s Fee – In cases where the attorney’s fee is only paid if the case is successful (otherwise known as contingency fees), the attorney’s fee is essentially a lien on the proceeds of the case. These terms are sometimes negotiated and memorialized in a retainer agreement signed by the attorney and the client. This agreement is most commonly seen in personal injury cases. The fee usually ranges from 20% to 40% of the total recovery. Of importance for purposes of Lawsuit Loans is that the attorney’s fee is superior a Lawsuit Loan.

Letters of Protection – Similar to the above, letters of protection are usually found in personal injury actions where there is extensive medical treatment. Basically, a letter of protection is a written acknowledgment, by an attorney, that his office will protect the medical provider’s lien for medical treatment rendered. It is unclear whether these acknowledgments take priority over lawsuit funding transactions, but nonetheless, Lawsuit Loan companies pay special attention to outstanding medical bills when underwriting a case.

Federal Tax Liens – By law, the presence of Federal Tax Liens take priority over other liens in the file including Lawsuit Loans. And this should come to no surprise to anyone since Uncle Sam wants his money first. These liens will typically attach to the proceeds and may have to be directly deposited with the IRS or other Federal Agency as full or partial payment of these obligations. In some instances, these amount can be negotiated down in an effort to settle a case.

Child Support – Most state laws require the presence of child support liens be superior to Lawsuit Loans. Child support liens are negotiable only in extremely rare cases. The presence of these and all other liens sometimes hinder settlement negotiations as the plaintiff suddenly realizes that he is pursuing his case to pay off his creditors. Under these circumstances, what is the plaintiff’s incentive to settle?

Lawsuit Loan companies know that verification of the existence of any of the above liens is crucial when considering whether an applicant is qualified for a Lawsuit Loan. These liens do not necessarily disqualify a person from obtaining a Lawsuit Loan but they will definitely reduce the amount of the Lawsuit Loan given.

Steven Medvin is the Executive Director of SMP Advance Funding, LLC, which provides lawsuit funding to individuals who need a lawsuit loan for pending lawsuits. For more information please visit: http://www.smpadvance.com.

Your Lawsuit Loan Amount

One of the first questions you may ask a Lawsuit Loan Company is: “How much can you lend me?” There are several factors that help determine just how much you can borrow against your case or claim. These factors vary between Lawsuit Loan Companies. However, there are some general rules or policies that most Lawsuit Loan Companies follow when assessing how much you will be able to borrow.

First, what is the value of your case? Most Lawsuit Loan companies will not lend you more than 10% to 15% of your case/claim value. For example, if you case is worth a total of $10,000, you will most likely be able to borrow from $1,000 to $1,500. Since most Lawsuit Loans are for cases that have not settled yet, the case value is determined by review of the case information sent by your attorney. Please note that the value determined by the Lawsuit Loan Company may differ from the case value your attorney suggested or the insurance policy limit. Each Lawsuit Loan Company has its own system for determining the case value.

Second, do you have any large liens attached to your case/claim (other than medical bills and lost wages)? Although medical bills and lost wages directly related to your case may actually raise the case value, certain liens will significantly lower it. For instance, a large lien for child support would lower your case value, in the eyes of the Lawsuit Loan Company, by the amount of that lien, as would a lien from a Federal Bankruptcy Court Trustee. Since your share of the settlement will be lowered by these liens, the amount that you can borrow will very likely be significantly reduced.

Finally, have you already taken out a Lawsuit Loan with another company? In most cases, this will reduce how much you can borrow. If the amount that you owe (with interest) is over the 10% to 15% threshold, you will most likely not be able to obtain another Lawsuit Loan. Also, you cannot stack loans from different Lawsuit Loan Companies. If you were to obtain a loan from another company, the new Lawsuit Loan Company would have to buy out your prior Lawsuit Loan before giving you additional funds. If you have a prior loan that is lower than the previously stated threshold, the new Lawsuit Loan Company would buy out the old loan (interest accrued to date included) on your behalf and give you additional funds over that amount.

Steven Medvin is the Executive Director of SMP Advance Funding, LLC, which provides lawsuit funding to individuals who need a lawsuit loan for pending lawsuits. For more information please visit: http://www.smpadvance.com.

The Lawsuit Loan Approval Process

Lawsuit Loan applicants are often frustrated with the application and approval process. Although most lawsuit loans can be approved in as little as twenty-four hours, there very often are factors that can extend that period of time by days. To better comprehend why delays may occur, it is important to understand the entire Lawsuit Loan approval process.

The first step is to complete an application with a company that provides lawsuit loans for your particular type of case or claim in your State. Not all lawsuit loan companies provide loans in every State. In addition, some loan companies are very particular as to what type of case they will provide funding on. Prior to completing an application, you should call the company that you are interested in applying with and confirm that you will not be wasting your time filling out the application.

After the Lawsuit Loan company receives your application, they will contact your attorney to obtain your case information. In most instances, your attorney will have to complete a case information form and provide supporting documents such as medical records, police report and the Complaint (if the case has been filed already). All of these documents must come directly from the attorney. If your attorney fails to respond or provide this information, your application will most likely be denied. If your attorney does not have the case information or supporting documents yet, there will be a delay in loan approval until your attorney is able to obtain the information needed by the Lawsuit Loan company to make a decision. To speed up the process, you should call your attorney to confirm that he is able to respond to this request and, if so, ask your attorney to promptly do so.

Once the Lawsuit Loan company receives the case information from your attorney, you should have a decision regarding whether you are approved within a few hours. However, there are factors that may extent this time period. For example, if you obtained a Lawsuit Loan from another company previously, that company will have to provide a payoff statement to your new Lawsuit Loan company. Any prior Lawsuit Loans that you obtained will have to be paid off by your new Lawsuit Loan company on your behalf, as stacking Lawsuit Loans from multiple companies is not permitted. Very often, obtaining this payoff statement can be time consuming.

After the Lawsuit Loan company has reached a decision, an offer will be made to you and the Lawsuit Loan terms will be clearly explained to you. If you accept the loan terms, prior to obtaining the funds, you will have to sign the loan documents. If you cannot sign the documents in person, this part of the process will be handled via e-mail, fax or mail. In addition, your attorney must sign an Acknowledgement, which is a document confirming that he will pay us once he receives your settlement or award proceeds. The funds cannot be disbursed to you until the Lawsuit Loan company receives both your signed loan documents and the Acknowledgement signed by your attorney.

The above should shed some light on the Lawsuit Loan approval process. Of course, there are often other factors that can cause delays. However, provided there is a good amount of communication between you, your attorney and the Lawsuit Loan company, if you qualify for a Lawsuit Loan, you should be able to obtain one within twenty-four to forty-eight hours.

Steven Medvin is the Executive Director of SMP Advance Funding, LLC, which provides lawsuit funding to individuals who need a lawsuit loan for pending lawsuits. For more information please visit: http://www.smpadvance.com.

Lawsuit Loans and Your Credit

If you are considering obtaining a Lawsuit Loan but have hesitated due to a less than perfect credit rating, there is no need to hesitate applying right now. A Lawsuit Loan is not credit based. Your credit score will not be verified and a company that provides Lawsuit Loans should not pull your credit report. You can rest assured that a bankruptcy, credit card discharges, judgments or other adverse credit records will not affect whether you can obtain a Lawsuit Loan.

Unlike a traditional bank loan, a Lawsuit Loan is strictly based on the value of your lawsuit or claim. Your credit score and income level do not affect whether and how much you can borrow. The only criterion for being approved for a Lawsuit Loan is the strength of your lawsuit or claim. The amount that you can borrow is based on the case value. However, most Lawsuit Loan companies cap that amount at 10% to 15% of the possible case value or settlement amount.

In addition to loan approval not depending on your credit rating, Lawsuit Loans will not affect your credit score. These types of loans are not reported to any of the credit reporting agencies. Also, since the Lawsuit Loan company is paid in one lump sum when your case is resolved, you do not have to make any monthly loan payments. This alleviates the worry of having to come up with payments when you are injured and the fear of a missed payment destroying your credit history.

Steven Medvin is the Executive Director of SMP Advance Funding, LLC, which provides lawsuit funding to individuals who need a lawsuit loan for pending lawsuits. For more information please visit: http://www.smpadvance.com.

Lawsuit Loans Versus Alternative Loans

People are faced with having to take cases to court every day. Reasons include, but are not limited to: fatal accidents, workers’ compensation claims and personal injury. When considering the time that a case could take; that being months, or even years – taking out a lawsuit loan can be a financially stabilizing answer for a family or individual.

There are other loan alternatives when considering the funds needed to take care of: ongoing medical bills, attorney fees, and court costs; lawsuit loans can be a win-win solution. In considering whether one should take out a lawsuit loan, there are many angles to take into consideration. First, one should understand the additional types of loans that are available to assist you.

Lawsuit Loans versus bank loans: The largest difference between a lawsuit loan and a bank loan is time. Lawsuit loans can be approved in as little as twenty-four to forty-eight hours. A bank loan, on the other hand, may take weeks to be approved.

It is very rare that a bank would approve a loan on the basis of a future lawsuit settlement. Although, if your relationship is good with a bank, and your credit rating is very high, they may consider the approval. This may take up to a month or two, involving much paperwork, and the signed authority of many executive staff members within the bank. A lawsuit loan team can tell an individual or family within a few short days whether or not their loan will be approved against a future lawsuit settlement.

Lawsuit Loans versus loans from family or friends: When considering a loan from a family member or friend to supplement financial needs, the biggest idea to think through is that of, what if I lose my case? Will you be able to pay the loan back to them? How long will it take you to pay back the loan? The loan itself could ruin a relationship between you and a friend, or you and family member. No amount of money is worth losing family or friends over.

Lawsuit loans are an easy solution to getting the money you need to proceed with filing your lawsuit. No matter what the case, it never hurts to contact a legal team regarding a lawsuit loan. With nothing to lose, and the benefit of moving forward with your case in a financially secure environment, legal funding has the possibility of helping any family.

With possible approval within twenty-four to forty-eight hours, legal funding is a quick option to getting the cash you need. Why should anybody or their family suffer when moving forward with a legal suit, when there is a win-win solution to getting financial backing through a lawsuit loan?

Steven Medvin is the Executive Director of SMP Advance Funding, LLC, which provides lawsuit funding to individuals who need a lawsuit loan for pending lawsuits. For more information please visit: http://www.smpadvance.com.

Top Three Reasons Why To Consider A Lawsuit Loan

Lawsuit loans are a simple way in which to get the finances you need when you are struggling with a claim. Claim types vary, and people are harmed every day. Most individuals often do not follow through with a claim, because they do not have the supporting finances to proceed with a case. Why not proceed with the case, using a lawsuit cash advance?

There are many reasons as to why one should consider a lawsuit loan when in need of moving forward with a lawsuit claim. Here are the top three reasons:

You Have Nothing To Lose: Lawsuit loans or legal funding are not returned until the settlement proceeds. This means, that you do not have to pay the amount back monthly, or annually. Legal funding is not just another bill to add to your stack of monthly payables, it’s the cash an individual or family needs to obtain legal representation, go to court, and attempt to receive justice for your case.

As lawsuit funding only needs to be returned after the settlement proceeds, the funding team takes the amount due, plus a fee for the loan right out of your settlement. So this means, not having to come up with a lump sum of cash on the spot.

It Gives You Or Your Family Financial Comfort: When you or a family member is in an accident that harms, or is even fatal, the medical bills can be outrageous. This is considering that the individual has health insurance. Medical bills skyrocket even beyond outrageous if health insurance is not in order. Also, there are instances in which health insurance will not cover your particular injury, but you do wish to proceed with filing a claim.

Lawsuit funding gives a family or individual a chance to fight for their due justice. Time off of work, not being able to afford daycare, or even not having the ability to purchase groceries, are all reasons in which many people are turning to lawsuit funding.

Time: Even as a person heals emotionally, physically or mentally from a tragic incident, the court system and its trials/paperwork can be a lengthy process. There are many situations that may be much like yours, waiting and pending, for settlement and decisions to be made.

Lawsuit funding gives you the opportunity to wait for that settlement, and still have finances available. In using the legal funding for the case and bills that may need to be paid up until the settlement proceeds, you can patiently wait for the process to move at its pace.

Legal funding has become more and more popular over the years, as it gives a person or family: time, financial comfort and truly, you have nothing to lose. Funding can be approved in as little as twenty-four to forty-eight hours. It never hurts to call a legal funding professional to ask if lawsuit funding is the right path for you and your family.

Steven Medvin is the Executive Director of SMP Advance Funding, LLC, which provides lawsuit funding to individuals who need a lawsuit loan for pending lawsuits. For more information please visit: http://www.smpadvance.com.

Lawsuit Loans Explained

Lawsuit loans, also referred to in term as lawsuit funding, is the process of a firm providing a given plaintiff an advance amount of an anticipated settlement for a lawsuit. Additional references that lawsuit loans often go by, are pre-settlement loans, pre-settlement funding, legal funding, or lawsuit cash advances. It is common practice for individuals or even companies to require lawsuit funding or lawsuit loans to take on both large or small cases.

Legal funding is not like any other loan that is common in the bank or funding world. It does not require collateral, so your home, car, boat, etc. do not need to be put forward to receive such funding. Also, in most cases, the lawsuit loan is only paid back if the trial or settlement ends in success. Then the pre-settlement funds are re-paid, often atop a fee for loan.

A lawsuit can take anywhere from months to years for a settlement to occur. If a victim is injured from the claim, they may already have large sums of costs in medical damages, and unpaid time away from work. Most times, lawsuits can also require a great deal of upfront funding to pay for attorney costs, documentation, and additional childcare services.

A lawsuit loan can give a plaintiff a lift from the financial burdens an injury, a claim and all of its existing upfront repercussions. In having the money necessary to file the necessary claim, it often gives a victim the chance to get financial and emotional grievances due. In cases where plaintiffs may not opt to accept a lawsuit loan, they may have to settle for a far lesser value than was owed to them, leaving them in debt, and in settlement for a low and unfair amount.

There are a few common steps to apply for lawsuit funding, or pre-settlement funding. There is often an application that needs to be completed before anything. This application will ask for not only your contact information, but also a full description of the case. This can sometimes be handled over the phone, if you choose to speak to a legal funding company. It is truly dependent on the company itself.

The company often also asks for a release document, and possibly another signed document or two. The entire process can take between twenty-four and forty-eight hours, dependent on the company. After all documentation and application forms, etc. have been received, the funding company will take time to review them. Within a short amount of time the lawsuit funding company will bring forth an offer for the victim, as to how much they will fund, as well as how much the fee will cost when the suit is settled.

Each victim has particular needs regarding funds and their suit. A legal funding company can determine what amounts are necessary for each case. Lawsuit funding as a process is actually quite simple, and can back your suit so you are able to fight for the settlements you deserve.

Steven Medvin is the Executive Director of SMP Advance Funding, LLC, which provides lawsuit funding to individuals who need a lawsuit loan for pending lawsuits. For more information please visit: http://www.smpadvance.com