3 Reasons Plaintiffs Get Denied for Lawsuit FundingGet Funding
The qualifying factors of pre-settlement funding aren’t the same as other consumer financial products. Instead of your credit score, lawsuit funding companies base their funding decision on the merit of your case. To put it simply, if your claim is strong, your chances of approval are very high and vice versa.
Unfortunately, in some instances it’s not that simple. No matter how strong your case might be, there are several reasons you could get denied for funding. It’s important to note that every case is different and has its own strength and weaknesses.
Reason #1: You live in a state where plaintiff funding isn’t possible.
Legal technicalities in certain States makes it impossible to provide lawsuit funding. Unfortunately, plaintiffs in these states cannot obtain funding, no matter how strong their case is. As of July of 2016, the 3 states below are out of bounds for Nova Legal Funding and other funders in the industry:
Reason #2: You haven’t hired an attorney yet.
No matter how valuable your case, you won’t qualify for lawsuit loans without an attorney.
Your chances of winning a settlement are reduced dramatically without an attorney. Because repayment to us is contingent on the success of your case, we only pre-qualify plaintiffs who’ve hired an attorney.
Qualifying for lawsuit funding aside, we strongly recommend you consult with a contingency-fee law firm. The only way to secure maximum compensation is to utilize the skill and experience of a personal injury lawyer. The 30-40% you’ll pay for the lawyer would be well worth it.
Reason #3: You already got too much funding from other companies.
We help clients with previous advances from other companies all the time. We do this by “paying-off” (or refinancing) the advance from the previous company. This consolidates your two advances at a lower interest rate, often resulting in significant savings.
When can previous funding disqualify you?
There is no universal cap on previous funding because it’s always relative to the value of your case. For example, if your case is worth $1,000,000 and you owe a balance of $50,000 to another company, your case would still qualify for additional funding. However, if your case is worth $10,000 and you have a $12,000 balance with a previous company, you won’t qualify.
In other words, previous funding is will not disqualify you if there’s enough room for additional funding.
Next Steps After Getting Denied for Lawsuit Funding
If you were denied for lawsuit funding today, it doesn’t mean you won’t qualify at a later date. In some instances, your case might qualify at a later date due to the natural evolution of lawsuits over time. It’s always helpful to know why you got denied for funding, so you can reapply once those circumstances change. For example, if you got denied because liability hasn’t been established in your personal injury case, simply reapply once your lawyer establishes fault.
Because Nova Legal Funding has the highest approval rating of any major legal funding company Nationwide, chances are that if you were denied by others, we can still help. Call (800) 760-0704 or apply online for a free consultation today.