Ask Yourself: Is Legal Finance Right for Me?Get Funding
Financial struggle is a daily reality for countless of injured plaintiffs across the United States. When you consider the average personal injury case takes 18 to 24 months to settle, it’s easy to see why. The combination of serious injuries (or death) and mountains of medical bills can leave anyone strapped for cash.
If you’re in the middle of a lawsuit, finding financial relief can be as hard finding an oasis in the middle of the desert. Where can one turn?
Fortunately, you have the option to obtain instant funding against your pending case. Direct cash made possible by lawsuit loans allow you to pay bills and focus on getting better. There are no spending restrictions, no credit checks or upfront payments. While sometimes referred to as legal loans, it’s not a loan because you’re not required to repay if you lose. Repayment is wholly contingent on a favorable outcome for your case.
Besides counsel from your lawyer, we hope this article guides you to financial success instead of hassle. Understanding the terms of legal finance is important when trying obtain funding that won’t break the bank. Quite simply, securing true oasis in legal finance requires that you educate yourself on the basics.
Are Lawsuit Loans Right for You?
Find out if lawsuit loans are right for you by asking yourself two simple questions:
“Do you really need funding to survive until settlement?”
If yes, legal funding is for you. We recommend that you only pursue legal funding if you’re struggling financially. Why pay interest on money you didn’t need? While there are no spending restrictions, the funds are best used for living expenses and essentials. This helps keep you in the fight against insurance companies, ultimately winning you a larger settlement.
“Can you get funding anywhere else besides from a legal funding company?”
If you have access to more traditional forms of funding, make sure to explore those options first. For example, if you get approved for a regular bank loan, the interest rate would be lower than legal financing. However, it’s vital to note that unlike regular loans, you’re not required to repay legal funding if you lose the case.
Now that you know if legal funding is for you, learn the major factors you should take into consideration before applying.
3 Rules to Ensure a Smooth Legal Funding process
Follow these 3 simple rules to obtain financial relief that won’t hurt you in the long term:
Rule #1: Only take enough funding to help you survive until your case settles.
While many consider this obvious, a surprising amount of Americans don’t follow this rule—whether it’s for legal funding or credit card debt. Before applying for funding, make sure to budget your expenses from now until the end of your lawsuit. Once you know the exact funding amount you need to survive, you’ll avoid paying excess interest on money you didn’t need in the first place.
Rule #2: Apply with legal funding companies that offer simple and reasonable terms.
At Nova Legal Funding, we’re proud to be transparent in everything we do. While we can’t speak for other legal finance companies, we offer the following terms and conditions for our clients:
- Our average rate is anywhere from 1% to 3%.
- Funding available from $500 to $5,000,000 (depending on case value)
- No monthly payments or upfront costs.
- No credit checks or employment verification
- No repayment if you lose the case
- Our funding is not a ‘loan’, but rather a non-recourse advance
Rule #3: Make sure your case is strong enough to qualify for funding
When it comes to qualifying for legal funding, it’s all about the facts of your case. Unlike a regular loan, funding companies don’t look at your personal finances to decide whether or not you can get funding.
Before you make plan to pay off bills with legal funding, make sure that your case has a change of qualifying for a legal loan. While each company has it’s own investment criteria, including here at Nova Legal Funding, there’s a universal requirement to qualify for funding. They consist of the following:
You need to have hired an attorney on a contingency-fee basis: We often get asked by plaintiffs: “Can I get lawsuit funding without an attorney?”. The answer is always no, because funding companies secure their advance through the lawyer, not the plaintiffs. When it comes time for repayment at the conclusion of the case, your lawyer issues repayment—not you.
Your case must have merit: Whichever case type you might have, your case against the defendant must have solid footing. In other words, you need to have suffered actual damages as a result of another’s negligence.
If you have these two things, you’re 90% there to getting approved. The other 10% has to do with the individual facts surrounding your case, and the potential settlement value it holds.
Getting Started with Nova Legal Funding
Thinking about applying for lawsuit funding? Have questions about the process and how it all works? Speak with a friendly Funding Specialist today at (800) 760-0704 or apply online.