29 May Reasons Applicants May Be Denied Lawsuit Funding
If you were hurt in an accident that wasn’t your fault, then you may be entitled for lawsuit funding. You may be severely hurt and unable to work and provide for your family. This is a very serious and difficult situation and pre-settlement funding is the answer you’re looking for. It’s not a traditional loan but a cash advance which you’re going to give back only if you win your case. However, not every plaintiff is able to ensure pre-settlement funding. A common question applicants ask is “Why was I denied?”
So, no matter how strong your case might be, your lawsuit funding application can be denied. Here are some reasons you may not be entitled for a cash advance:
You didn’t hire an attorney– you may have a really strong case but if you don’t have an attorney, you will be denied for pre-settlement funding. A legal funding company is investing in your lawsuit when giving you a cash advance. Your attorney can provide all the relevant documentation so the funding company experts can determine how strong your case is. Also, the attorney will be responsible for repaying the funding company once the case settles.
You hired an attorney– it’s possible to be denied funding even though you have a lawyer. If he/she refuses to provide the necessary documentation or if he/she isn’t working on a contingency basis, you will be denied lawsuit funding.
You don’t have a strong case– if a plaintiff loses his/her case, the funding company loses too because the plaintiff doesn’t need to repay anything. This is the reason why companies review all the documentation very carefully to determine if it’s worth taking the risk. If you don’t have a strong case you will not receive pre-settlement funding.
The case is new– the documentation legal funding companies require are accident reports, medical documentation, test results. All of these take time to gather, so if you don’t have them, don’t apply for funding because you will be denied cash advance.
You have no equity in the case– equity is the value of your lawsuit when all the fees, liens and other expenses are taken out of the settlement. If you have no equity then the funding company won’t take the risk of giving you cash advance because they feel they won’t be repaid plus given their profit.
If you’ve been involved in a personal injury case, feel free to contact the Certified Legal Funding experts who will answer all your questions and tell you what you need in order to be eligible for pre-settlement funding. Call today at 800 922-7439! Let us help you!