Welcome to the lawsuit loan frequently asked questions page. This section contains all the common questions and answers a plaintiff would have regarding lawsuit loans.

What is a Lawsuit Loan?

A lawsuit loan is an advance on a pending lawsuit. The amount given in the  loan is less than the actual pursued amount in the pending lawsuit and is usually less than 10%. Lawsuit loans are not like traditional loans. You do not need a credit check, employment history or a specific income amount.

Is a Lawsuit Loan Really a Loan?

No, a lawsuit loan is not like a traditional loan. If you do not win your lawsuit case you will not have to pay back anything to the provider of the lawsuit loan. This does mean you’ll need a strong case in order to receive a lawsuit loan. Almost all frivolous lawsuits will not be approved for a lawsuit loan.

Can My Attorney Give Me a Lawsuit Loan?

No, beyond case expenses the American Bar Association prohibits attorneys from lending money to clients. This helps prevent a conflict of interest arising between the attorney and the client. For example, if you owed your attorney money you might accept advice to settle your case for a lower amount then you really wanted.

What Type of Cases Can Get Lawsuit Loans?

The majority of lawsuit case types can get a settlement loan. Due to the large number of different types of cases you would need to review our Types of Cases article to review a full list of known cases that lawsuit loan providers accept.

How Do I Repay My Loan If I Win?

This can vary between lawsuit loan providers. Usually, there is a written agreement between the provider and your attorney; which is used to over see how the funds are dispersed after the case has ended. Contact your attorney regarding the best method.

Are There Any Up Front Costs?

This can vary between lawsuit loan providers.  To our knowledge, most respectable providers do not charge any fees in the application process. However, you will probably incur charges with your attorney when they consult with him regarding your current case, its status and merit.

Does the Defendants Insurance Company Get Notified?

No, due to issues with privacy and possible corruption of the law suit itself the lawsuit loan providers will only contact you and your attorney regarding your lawsuit loan. This would be an unethical practice and if any provider requires this you should look for another ethical lawsuit loan provider.

How Will My Attorney Feel About This?

Your attorney will most likely be sympathetic to your financial situation. In fact, when a client gets a lawsuit loan the client tends not to settle for a lesser amount due to any financial issues and allows the case to obtain its maximum amount. If you and your attorney have a contingency agreement it may interfere with a lawsuit loan. Discuss this with your attorney if you think an issue may arise.

Do I Need Good Credit for a Lawsuit Loan?

No, a lawsuit loan is not a traditional loan. Your credit history does not affect your chances of getting a lawsuit loan. However, bankruptcy may be an issue and you should notify your lawsuit loan provider about it.

How Much Money Can I Get?

This will vary from each lawsuit loan provider. We’ve seen percentages around 10% to 25% of the projected case value. In dollar amounts it can range from $250 to $1,000.000 total cash value. Do you research, finding the right lawsuit loan provider can get you more money at less cost.

Are There Limits On What I Can Use the Money For?

No, you are free to spend the money on whatever you’d like. This can be affected if you have any standing agreements with your attorney; you may have to pay a percentage of the lawsuit loan out to them. Please consult with your attorney about this before spending your lawsuit loan.

Can’t I Just Get a Regular Bank Loan?

Financial institutions do not lend money on the merits of a pending lawsuit. To a normal financial institution backed by consumer funds the concept of litigation financing is too risking.