Being injured because of someone else’s neglect can be downright traumatic. On top of the physical pain you’re experiencing, and the mental and emotional strain of not being able to do the activities you enjoy, you’ll likely be managing a complex, lengthy lawsuit to win compensation for your injuries.

With the help of a good lawyer, the case will be more manageable – and you’ll stand a chance of winning a bigger settlement. But even then, you’ll be forced to wait weeks, or longer, to get the money you’re owed.

One possible solution is applying for lawsuit funding. But is it possible for your lawsuit funding application to be denied?

The Basics of Lawsuit Funding

Let’s start with a primer on lawsuit funding, in case you aren’t familiar. Working with a lawyer, you’ll be striving to get a settlement – a sum of money designated to cover your medical expenses, your lost wages, compensation for your pain and suffering, and more. However, it can take weeks to months before you see this money.

Lawsuit funding works like a loan, giving you near-instant access to the money you’ll stand to win as compensation. Depending on the provider, you’ll either pay an interest rate on this principle (which is not advisable) or a flat fee for the service. You won’t owe anything until you win the settlement – and you can spend the money however you like.

If you don’t win a settlement, you won’t owe anything to the lawsuit funding provider (in most cases). This is one reason why lawsuit funding providers scrutinize your application; they want to make sure you have a strong chance of winning a reasonable settlement, so you can pay that money back.

Why Lawsuit Funding Applications Get Denied

It’s certainly possible that your lawsuit funding application will be denied.

There are several reasons why this can happen. These are some of the most common:

• You don’t have a lawyer. Most lawsuit funding applications will begin by asking you to name your lawyer. If you’re trying to represent yourself without a lawyer, or if you haven’t chosen a lawyer yet, you’ll be forced to leave this field blank. Unfortunately, this is a red flag for most lawsuit funding providers; it means your case doesn’t stand a good chance of winning a settlement or it’s too early in the process to make that determination. Either way, your application is probably going to be rejected.
• There are known problems with your lawyer. Having a lawyer is no guarantee of success, however. If there are standing issues with your choice of lawyer, your application may also be denied. For example, if your lawyer is inexperienced or if they aren’t fully qualified, your lawsuit funding provider may not be willing to place a wager on the success of your case. Additionally, if your lawyer refuses to provide documentation or if they don’t engage with the lawsuit funding provider, that may jeopardize your chances of being awarded funding.
• You’ve already taken out funding. It’s possible that you’ve already taken out lawsuit funding. If you’re in the middle of a personal injury case and you’ve been awarded funding, lawsuit funding providers will be reluctant to issue you additional funds. There are some exceptions to this, but for the most part, providers don’t want you borrowing large sums of money or money from multiple providers.
• There are issues related to state laws. Lawsuit funding is largely unregulated. There aren’t many laws or rules dictating how lawsuit funding can be provided, at least at the federal level. However, there are some state laws that interfere with the provision of lawsuit funding. If you live in a state that restricts how lawsuit funding can be issued, or if there’s some degree of uncertainty, your lawsuit funding provider may be unwilling or unable to issue you funding.
• Financial liabilities stand in the way. With traditional loans, banks will typically examine your credit score and outstanding liabilities before determining whether to provide you funds. With lawsuit funding, you won’t have to worry about your credit score getting in the way – but certain types of liabilities may get in the way of your application being approved. For example, if you owe child support or if you have liens against you, it may interfere with your ability to receive funding.
• There isn’t enough data on your case. Remember, if you don’t win a settlement, you probably won’t owe anything to your lawsuit funding provider. Your provider wants to be paid back, so they need to be sure your case has a strong case of winning. Early in the development of your case, there may not be sufficient evidence or documentation necessary for your lawsuit funding provider to make a decision about the chances of your case. In this situation, you may be able to apply again in the future.
• The future of your case is uncertain. Similarly, if the liability in your case isn’t clear, or if the evidence is mixed, a lawsuit funding provider may be unwilling to approve your application. If your injury is clearly the result of someone else’s actions, and the evidence supports this, you shouldn’t face this type of issue.

Are There Downsides to Having a Lawsuit Funding Application Get Rejected?

Here’s some good news; apart from not getting access to the capital you seek, there are no downsides to having a lawsuit funding application rejected. You won’t face a credit score penalty, your case won’t be affected, and you won’t owe any money to the provider.

Because of this, it’s almost always in your best interest to fill out a lawsuit funding application. It’s a process that only takes a few minutes, and it could grant you instantaneous access to the money you’ve been eagerly awaiting.

If you’re ready to get started, you can apply here for lawsuit funding today – or contact Capital Now Funding for more information.