We are often contacted by plaintiffs who ask how lawsuit loans are processed and what steps are involved. Below we describe the steps needed to provide a lawsuit loan. In subsequent posts, we will delve a little deeper into these processes.
The basic lawsuit loan process goes like this:
- Client or attorney contacts lawsuit funding company.
- The case basics are discussed on the phone and call is screen to see if the lawsuit is something that can be potentially advanced on.
- Client asks questions about rates/fees, payback amounts, etc.
- Once comfortable, client applies for the advance giving some more particulars about the case, their name and contact information and the name and contact information for his attorney.
- Lawsuit funding company requests relevant paperwork from attorney’s office.
- Once the paperwork is received, it is reviewed and any additional questions are presented to the attorney either through email or a phone call.
- Lawsuit funding company approves client for a “lawsuit loan”.
- A contract is drafted and forwarded to client and counsel.
- Client signs agreement and has signature notarized and returns the documents to the funding company.
- Attorney signs the attorney acknowledgement indicating that he will repay the advance out of the settlement proceeds, if any.
- Lawsuit loan is advanced to the client via mail, overnight, or bank transfer.
- Transaction is completed as the parties await a successful resolution to the case.
- When the case is resolved and successful recovery made, client’s attorney repays the lawsuit loan out of the proceeds.
Well, that’s all there is to the lawsuit funding process. In the next post, we will give a little more detail about each of the steps.
Thank you for your interest in the lawsuit funding business.