How Many Lawsuit Loans Can I Get?
Lawsuit loans can give you the cash you need to manage your personal expenses and help you get through to the receipt of your settlement. But what if the first loan isn’t enough? Can you get another loan to help you meet all your expenses? And if so, how many loans can you get?
The Basics of Lawsuit Loans
We'll start with a basic explanation of what lawsuit loans are, in case you aren't familiar. These loans, sometimes called settlement advances, pre-settlement funding, or other names, are designed to provide plaintiffs with an advance of cash while they're waiting for their settlement money.
As a borrower, you'll fill out a brief application with your personal information and contact information for the law firm you're working with. As long as your case has a high potential of payout, you'll likely qualify for a loan of a specific amount, based on the nature of your case. Once approved, you will get the money quickly, and you can use that money however you want.
Why One Loan May Not Be Enough
One loan may not be enough, however. After taking out the loan, you may discover:
- Higher expenses. Your personal expenses may be higher than you originally anticipated. You may have to attend several follow-up appointments for medical needs, or you may be out of work longer than you expected, reducing your income and therefore limiting your financial capabilities. In any case, the initial payout may not be enough to help you get through this tough period of time.
- Low initial loan amount. You may also have been approved for less money than you needed. Being approved for less than you need is not uncommon. Sometimes the loan company is confident with a small amount of money but needs to see the case progress further before approving you for a larger amount of money.
- Prolonged lawsuit. The most common reason why one settlement loan may not be enough is because your case is taking longer to settle or it is going to trial. Lawsuits take a long time to reach a settlement, and even longer for plaintiffs to get their payout. If there are delays during this process, or if negotiations get more complicated than originally anticipated, you might be stuck waiting months longer than you initially thought.
How Many Lawsuit Loans Can I Get?
So how many lawsuit loans can you actually get? Is it possible to get more than one?
The answer is yes; you can get more than one lawsuit loan. In fact, there's no limit on the number of lawsuit loans that you can get. The real limiting factor here is the value of your case.
It is important to remember that whatever you borrow you're going to have to pay back. Lawsuit loans are typically non-recourse, meaning if you don't win a settlement, you won't owe the money back – but if you take out multiple loans you could end up in a situation where you have to pay back more money than you won.
Best Practices for Getting Multiple Lawsuit Loans
If you’re thinking about getting multiple lawsuit loans, make sure you:
- Understand the fees, terms, and conditions. Always investigate the fees, terms, and conditions. Make sure you understand what you're responsible for and how this loan will play out.
- Have a plan for the money. Don't take out a loan just for the sake of getting money to spend indiscriminately. You should have a plan for how you're going to use the money before you take out this loan.
- Do you need the money? Just because you can take out multiple loans doesn't mean you should. Be sure and review your cash needs carefully and only take a loan for the amount of money you actually need.
- Be prepared to pay back what you borrow. If you're in line to win a large settlement, this shouldn't be much of an issue – but you can't afford to forget about it. Just remember that when your settlement arrives, you will have to payback the money you borrowed.
What to Do If You’re Still Financially Struggling
If you're still financially struggling after taking out multiple loans, consider taking the following courses of action:
- Cut your personal expenses. Reduce your cost of living and cut unnecessary expenses.
- Pick up part-time work. Consider getting a part-time job or starting a side gig to establish an extra line of income.
- Ask for support. Ask your friends and family members for additional financial support.
- Get additional loans. If you are still in need, continue to work with your attorney and settlement loan company to see if you can qualify for additional funding.
Whether you're applying for your first lawsuit loan or an additional pre-settlement loan, the application itself is very simple. In just a few minutes, you could be well on your way to getting the money you need to make ends meet until your settlement arrives. Check it out for yourself and start the application process today!