Can You Get Two Pre-Settlement Loans?

Jacky Gale | March 13th, 2019

Plaintiffs may file similar types of lawsuits, but no two plaintiffs are alike. Every individual has a unique situation and unique financial needs. In some cases, a plaintiff might decide that the original pre-settlement loan isn’t sufficient to cover the family’s expenses while awaiting a favorable settlement or jury award. These plaintiffs might start thinking about getting a second pre-settlement loan from a lawsuit loan company. This might be possible, but it would be approved on a case-by-case basis. Before exploring the details of second loans, it can be helpful to take a closer look at the fundamentals of legal funding.

What legal funding is

Plaintiffs file lawsuits to recover compensation for damages, such as medical expenses, property damage, lost wages, loss of earning capacity, and mental anguish. Some lawsuits do go to trial, but many are settled through a mutually agreed upon arrangement between the plaintiff and defendant. Either a jury award or a settlement will result in compensation for the plaintiff.

The problem is that plaintiffs must wait a long time to get compensated, and in the meantime they may have trouble paying their medical bills or everyday living expenses—especially if their injuries force them out of work. The solution is legal funding. Legal funding, such as a pre-settlement loan, allows plaintiffs to take a cash advance on their future jury award or settlement. Unlike a traditional loan, pre-settlement loans are non-recourse. This means that if the plaintiff loses the case, the money never needs to be repaid.

When a second pre-settlement loan might be approved

When a plaintiff applies for a pre-settlement loan, the legal funding company asks for basic information about the case. Based on that information, the plaintiff is approved for a maximum dollar amount. However, some plaintiffs decide that they don’t need the full cash advance. They might want to just take part of the loan for the time being to tide them over until their lawsuit reaches a resolution.

Unfortunately, lawsuits are notorious for taking a long time to resolve. It can be months or even years before a case goes to trial or settles. In the meantime, plaintiffs may find themselves struggling financially again. At this point, plaintiffs have the option to talk to the legal funding company again about a second pre-settlement loan. The company might advance the difference between the maximum approved amount and the amount that the plaintiff originally accepted.

Why you should choose LawStreet Capital for your lawsuit funding

LawStreet Capital works closely with plaintiffs to help them get legal funding that suits their unique needs. As one of the most respected legal funding companies in the industry, LawStreet Capital is known for transparent terms and low interest rates. Plus, you could get approved in as few as 24 hours. No credit check and no employment verification are necessary. If approved, you could have money in your pocket overnight. Remember: pre-settlement loans are non-recourse, so there is zero risk to you. If you lose your case, you’ll pay nothing. Call today toll-free at 866-FUND-662.

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