Pre-Settlement Loans: How to Get a Loan Before Your Settlement (Quick!)

pre-settlement loans how to get loan before settlement payment

Waiting to settle a civil lawsuit can take years, and you won't receive your settlement check until the case ends.

So what do you do in the meantime? If you can't work or if you have bills piling up from the accident, how do you come up with the cash you need while you're waiting for the check to arrive?

There are ways, but the best option is to look for pre-settlement loans.

A pre-settlement loan is not exactly a loan, though. Instead, it's like prepayment of the settlement funds you plan to receive in the future.

If you're interested in getting one, here are several things to know as you begin looking for a pre-settlement loan that you can get quick and easy.


The Basics of How Pre-Settlement Loans Work

As mentioned, a pre-settlement loan is not really a loan. At least, not in the way ordinary ones work.

Most people qualify for these loans if they meet the following criteria:


  • They are involved in a high-value civil lawsuit.
  • They are the plaintiff in the case.
  • They expect to win.

These are the main factors for qualifying for lawsuit funding. When you apply for one and get approved, you receive cash. The cash is an advance from the settlement money you expect to receive in the future.

The amount you receive is not equal to your total settlement. It typically is only a fraction of the amount you expect from the settlement, but it should be plenty to carry you over until you receive your big check.

You can use the proceeds any way you would like. You can use it to pay your regular monthly expenses, or you can use it to pay off medical bills from your incident. You can also save the money for unexpected expenses during this time.


How to Get One

To get lawsuit funding, you'll need to talk to a lender that offers them. You can find out what lender to use by talking to your lawyer, or you can look up lenders that offer the lowest rate pre-settlement loans.

Once you find a lender, you'll need to fill out an application and supply the necessary documentation. The lender will need to verify the accuracy and state of your current lawsuit before approving the loan.

The process that lenders use for lawsuit loans is fast and effective. In fact, you should have an answer very quickly about your loan.

One of the best parts of getting a pre-settlement loan is that you will not have to pay it back out of your pocket.

When your settlement check arrives, your lawyer will pay the lender first and any other expenses. You will then receive the remaining amount.


Ways to Learn More

If you are struggling to pay your ordinary living expenses while awaiting your civil lawsuit settlement, getting a pre-settlement loan is a great choice.

You can look into these loans and others before choosing which route to take, and you can also learn more by visiting the rest of our site. We have informative and helpful loan articles on this subject and many others related to borrowing, lending, lawsuits, insurance, and paying off debts.

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