How Lawsuit Funding Works
Being approved for pre-settlement funding is not the same as getting approved for other financial services. Instead of your credit score, the option to get settlement funding is based on the specifics of your case. Simply meaning if your case is strong, then your approval rate for lawsuit funding is stronger, and vice versa. Additonally, lawsuit funding companies will look at any financial liabilities. For example, this could be bankruptcies, or financial lien. Despite those facts, in some cases it will be other factors that have to be met for approval on an application. This is still true even if you have a strong case. This is why it’s always important to know the reasons for legal funding to be denied. Therefore, we have made a list of the top reasons your case would be denied from settlement funding.
5 Reasons Plaintiffs Are Denied Lawsuit Funding
Reason #1: Your Case Is Too New For Lawsuit Funding
New cases tend to not have enough needed documentation such as medical or police reports. This documentation is needed because we have to make sure that we have enough info on your case to feel comfortable funding you. The reason for this is because lawsuit funding companies take on a risk for every case they choose. To put it simply, turning in an application on a new case is too high of a risk due to lack of documentation. Eventually, this would cause your application to be denied.
Reason #2: Pre-Settlement Funding Is Not Allowed In Your State
Due to different laws and regulations across the U.S., this can prevent a cash advance from certain states. Furthermore, it’s important to check if you are in a funding state by the company you are looking at. We provide information on states we fund to help you know if you’re in a state we help with settlement funding. Unfortunately, if you’re not in the states we fund then we would decline your application.
Reason #3: You Have Too Many Financial Liabilities
We never use your credit score to approve your application, but we do review any bankruptcies, or other financial liabilities. In review of your application these issues can cause your case to be denied. Once those issues have cleared up, you can resubmit your application. Additionally, if you have already taken care these issues, then feel free to apply here to get settlement money now!
Reason #4: You’ve Reached The Limit For Settlement Funding
To make you aware, we will be asking you on your application if you’ve already received lawsuit loans from another company. Please make sure you are honest with us because we will look for all details on your case. During this process we will see if there is room for funding on your expected cash advance. Eventually, if we do not see anyway to add more funds, then your application will be denied.
Reason #5: You Do Not Have An Attorney or Have Attorney Issues
If you do not know at this point, then you need to know that it’s important to have an attorney before looking for legal funding. Even with a strong case, without an attorney your application has more chances of being denied. Additionally, attorneys can help guide you through the application process, but sometimes they can hinder it as well. For example, your attorney may not be turning in all needed documentation related to your case. Ultimately, you want to have an attorney that is willing to help you as best as possible on your case. With that being said, definitely read this resource for help finding a good attorney.