If you’re applying for a lawsuit loan, it helps to know why some applicants are denied and whether you’re at risk of missing out.
The following are some of the most common reasons why plaintiffs are denied a lawsuit loan. Find out what you can do to make it more likely for you to obtain pre-settlement funding.
Why Do Plaintiffs Apply for Legal Funding?
Plaintiffs apply for legal funding for a variety of reasons. For one, few can afford to fight a lengthy lawsuit on their own. Others might be worried they risk not winning their lawsuit settlement so want to get access to a portion of it now. For others, they simply want the safety of having extra savings, which can allow them to fight for a larger settlement with no worries.
The rejection of your application for legal funding can have a different effect depending on the reason why you applied in the first place. If you’re truly in need of the money, a rejection can be devastating to your litigation. Find out why your application for pre-settlement funding could be turned down and what you can do about it.
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Your Case Isn’t Strong Enough
A legal funding company will only lend to you if it seems like you can win your case. If it appears that you share 51% or more of the blame for your damages, a legal funding company won’t lend to you. In states where laws are less permissive to legal funding, you could have trouble getting a lawsuit loan if it appears you share any of the blame.
Legal funding companies treat lawsuit loans as investments. They only want to back winning cases and will avoid yours if they don’t think you’ll win.
You’re Litigating in an At-Fault State
State laws play a major role in determining if a plaintiff can even get access to legal funding. In at-fault states, it’s notoriously difficult for a plaintiff to obtain legal funding. Even those with seemingly ironclad cases might not be able to access a lawsuit loan.
Those state liability laws are such that if a plaintiff is found at any degree responsible for their own damages, they forfeit their ability to collect any damages whatsoever. This leaves legal funding companies exposed to a high risk of losing their entire investment.
Georgia is a no-fault state. This can make it easier to obtain funding in cases where the plaintiff may bear partial responsibility for an accident.
You Don’t Have a Lawyer
If you don’t have a lawyer, it’s unlikely that you’ll be able to obtain legal funding, no matter how strong your case. Hiring a lawyer increases the likelihood that you’ll win your lawsuit. Legal funding companies only bet on who they think are winners. Without a lawyer, the odds of winning your case are stacked against you.
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Your Lawyer Doesn’t Approve of Legal Funding
Your lawyer will need to approve of your use of legal funding in order for you to receive a lawsuit loan. This is because your lawyer will handle your payment and must involve the legal funding company during this stage. Some lawyers prefer not to include a third party during this process, but most contingency-based lawyers are open to working with a legal funding company.
You’ve Already Received the Maximum Amount of Legal Funding
One less common reason for being denied legal funding is that you’ve already maxed out your limit. In most cases, you won’t be able to obtain more than 20% of your settlement as a lawsuit loan. If you have hit this limit but still need more money, the only option available to you at this point would be to sell your settlement.
Apply for a Lawsuit Loan Today
Silver Dollar Financial can provide you with a lawsuit loan if you’re filing a case in Georgia. We cover a vast range of cases and offer fair rates and a fast, simple application process. If you’re waiting on a settlement, we can most likely assist you.
A lawsuit loan can give you a major advantage over the defense, especially if they have deep pockets. Apply today and you could receive legal funding within 24 hours of your approval. Even if you’ve been denied legal funding elsewhere, we still may be able to assist you.