It’s only natural for you to struggle with court bills during a settlement, but you might be wondering whether a lawyer can deny you from getting a pre-settlement loan.
Pre-settlement loans are exactly what they sound. These are loans that an individual can take to keep the lawsuit alive.
It’s hard to fight against big corporations because they have endless resources and lawyers that will drag the lawsuit for months if not years. But every court visit puts a huge dent on your finances.
So you might be wondering whether your lawyer can prevent you from obtaining such a loan.
The short answer to this question is no. A lawyer has no power over you making any such decisions. The plaintiff can obtain a settlement loan without asking permission or without having the lawyer present while obtaining it.
With all that said, sometimes getting a settlement loan isn’t the best thing since you might be actually losing the case but your bias doesn’t let you see clearly. Your attorney has your best interests at heart, and the person will know whether or not you need it.
But before obtaining such a financial boost, let’s discuss matters into more detail.
1. Before You Obtain A Settlement Loan, You Need a Lawyer
We shouldn’t have to mention the importance of having an attorney working on your case. However, there are still people out there that believe they could do a better job defending their self, or their case, without needing an attorney.
An attorney drastically increases your chances of winning the lawsuit. This individual is well-versed in a particular section of the law and knows the ins and outs of the industry. This person will know how to defend you and will know how to win a lawsuit against another individual or company.
But to obtain a pre-settlement lawsuit loan, you cannot go solo on this since no one will believe you will win the case. Having an attorney on your case gives the lenders some sort of security and decreases the likelihood of you being rejected.
The reason why you don’t need a lawyer might be purely financial. However, many law firms work on a contingency fee basis. This means that you don’t have to pay the attorney during the duration of the trial but after you win the case, and if you win the case. This is probably the best thing that has happened since sliced bread. However, not all things are rainbows and sunshine.
A law firm won’t ask for any payments during the trial, but they will demand a hefty percentage after you’ve won. This fee can be as high as 40%.
2. The Decision To Obtain the Loan is Solely Yours
We love it when no one can forbid us from doing something that we want. However, when it comes to obtaining loans, this isn’t as straightforward as it sounds.
As we mentioned earlier, getting that loan might not be the best course of action. We also mentioned that your attorney has your best interests at heart, and his advice will be the most important thing you’ll hear during the trial.
He may advise against getting t pre-settlement loan, but should you listen?
Well, whether you listen to his advice or not is a decision that is yours to make. You could sit down with your attorney and discuss it before going to a lender, or you could simply ignore it.
If you choose to get a pre-settlement loan, it’s important to do it with the right lenders. This is because different lenders will give you different monthly rates, fees, etc.
We recommend you check this out as these are the professionals you want to be working with when getting a pre-settlement loan. They have some of the best rates, monthly fees, and they include no hidden fees what so ever.
But before all that, make sure to sit down with your lawyer and discuss a few things.
The first thing both of you should discuss is whether or not you need it. The case might be very slim in your favor, so it might be wiser to try and get a settlement instead of a loan.
Maybe it’s not the best financial decision since this isn’t your first pre-settlement loan? Maybe you don’t need it since the case is already won. There are different scenarios that both of you can discuss that can directly impact this decision. The important thing to know, however, is that this type of loan helps you if you’re struggling to pay off the legal fees or bills that come with a trial.
3. Were You Denied A Loan? Here Is What To Do
There is always the possibility of being denied when filing for such a loan. Anyone can get approved and anyone can get denied. But various factors play a major role in obtaining it.
Firstly, every lender will take a look at your case and determine the risks involved. Maybe the lender doesn’t feel your case establishes liability and you will be denied in this case.
However, there is no need to panic as you could reapply not once but multiple times even if you were rejected. This is because cases change, odds turn in your favor, and you could end up with a solid defense/attack in no time.
In this situation, you can re-apply for the loan as your case becomes stronger and stronger. The lender will then do a re-evaluation of your situation and determine the risks again.
Most lenders will also fund any type of cases such as car and auto accidents, product liability, medical devices, personal injury, employment lawsuits, and many more.
Trials can become a financial burden for any individual. This is why pre-settlement loans exist in the first place. They are designed to aid you financially during these difficult times, but the lender needs some sort of security that you’ll win the lawsuit. At the end of the day, the decision of obtaining this loan is solely yours, if you get approved.