Find Out Why
Why lawsuit fundings exist after all? They were invented with a purpose to help persons who are suffering financial problems while they’re waiting for their case settlement . For some persons, this can be very helpful (some people may experience severe lack of funds for satisfying even basic needs). Besides this, a lawsuit cash advance can help someone to get better settlement (because they now have financial leverage).
But, practice has shown that not every plaintiff’s case warrants approval. Some of them simply to not fulfill all needed requirements. And many of those denied plaintiff simply don’t understand completely why they were denied. Here you can read what the most common reasons for denial are:
1. You haven’t hired an attorney
Legal finance company is investing funds in your attorney, not you directly. The cash is provided to your attorney, and he forwards it to you. Attorney provides case documentation to the funding company and the company makes its decision based on those documents. If documentation is not complete, then the company cannot make a decision. Also, an attorney is in charge of repaying the company after you receive your settlement.
2. You do have an attorney, but…
…you have incomplete documentation. If you’re attorney doesn’t respect deadlines or if he refuses to provide asked documentation, you may be denied.
3. Your case is ‘’brand new’’
Decision is usually made based on case documentation. If your case if fresh and if you look for a lawsuit loan too soon, without gathering necessary documentation first, your request may also be denied. Case documentation includes medical records, different tests and accident reports. And getting these documents can take a while.
4. You don’t have equity in the case.
Equity is basically the amount of money you’d have after you receive your settlement and pay fees and other expenses. If it happens that you don’t have equity, funding companies won’t give you the loan (after all, they get their profit from your equity).
5. Unfortunately, your case is simply not strong enough.
You must realize that funding company takes every possible risk when they invest their money in you. If you lose your case, the funding company loses its money. That’s why they request case documentation. If they estimate it as ‘’not strong enough’’, your application won’t be accepted.