Car accident lawsuit loans help you get money while your case is still going through the courts. The process is simpler than most people think and usually takes less than 48 hours from start to finish.
Unlike regular loans, you don’t need good credit or a job to qualify. The funding company looks at your case strength, not your financial history. If you lose your lawsuit, you don’t pay anything back.
Here’s exactly how the process works from the moment you apply until you get cash in your bank account.
Step 1: Submit Your Application
The first step is filling out an application with basic information about yourself and your accident. Most applications take 5 minutes or less to complete online.
You’ll need to provide your full name, address, and phone number. The application asks for details about your accident like when it happened, where it occurred, and who was involved. You don’t need to write a long story – just the basic facts.
The application also asks about your injuries and medical treatment. List the main injuries you suffered and what doctors you’ve seen. Include hospitals, specialists, and physical therapy if you’ve had any.
Most importantly, you need your lawyer’s contact information. This includes their name, law firm, phone number, and email address. The funding company must work with your attorney to verify your case details.
You can apply online 24 hours a day, seven days a week. Some companies also accept applications by phone if you prefer to speak with someone directly. The application doesn’t cost anything and there’s no obligation to accept funding if approved.
Step 2: Case Review and Attorney Contact
After you submit your application, the funding company contacts your lawyer within a few hours. This is the most important part of the process because your attorney provides all the case details.
The funding company sends your lawyer a case information form. This form asks specific questions about your accident, injuries, medical treatment, and the strength of your case. Your attorney decides what information to share based on attorney-client privilege.
Your lawyer provides details about who caused the accident and what evidence exists. They explain your injuries and medical treatment to date. They also give their professional opinion about the likely settlement value and timeline.
The funding company asks about insurance coverage available to pay a settlement. This includes the at-fault driver’s auto insurance and any other applicable policies. Higher insurance limits usually mean higher potential settlements.
Your attorney must agree to work with the funding company and sign their agreement. This protects everyone involved and ensures proper handling of any settlement funds. Most experienced personal injury lawyers are familiar with this process.
Step 3: Medical Records Review
While talking to your attorney, the funding company may request copies of your medical records. These records help them evaluate your injury severity and treatment costs.
Your lawyer provides relevant medical records that support your case. This might include emergency room reports, surgery notes, diagnostic test results, and physical therapy records. The funding company reviews these to assess your damages.
More serious injuries typically qualify for higher funding amounts because they lead to larger settlements. Injuries requiring surgery or long-term treatment are viewed more favorably than minor soft tissue injuries.
The medical records also help establish the connection between your accident and your injuries. Clear medical documentation showing accident-related injuries strengthens your funding application.
This review process usually happens quickly because most attorneys keep organized case files. The funding company’s medical experts can review records and make decisions within hours of receiving them.
Step 4: Case Evaluation and Funding Decision
Once the funding company has all necessary information, they evaluate your case and decide whether to approve funding. This evaluation looks at several key factors.
Liability is the most important factor. The funding company needs to see clear evidence that someone else caused your accident. Cases with obvious fault like rear-end collisions or drunk driving accidents get approved more easily.
Your injury severity affects both approval and funding amount. More serious injuries that require extensive medical treatment qualify for higher funding amounts. Minor injuries might get approved for smaller amounts or not qualify at all.
Insurance coverage available to pay a settlement is crucial. If the at-fault party has minimal insurance, your potential settlement is limited. Cases with adequate insurance coverage are more likely to get approved for funding.
The strength of evidence supporting your case matters significantly. Clear accident reports, witness statements, and medical documentation make approval more likely. Cases with disputed facts or weak evidence might get denied.
Your attorney’s reputation and experience also play a role. Funding companies prefer working with experienced personal injury lawyers who have track records of successful settlements.
Step 5: Funding Offer and Terms
If your case is approved, the funding company makes you a specific offer with clear terms. This offer includes the funding amount and exactly what you’ll owe if your case settles.
The funding amount is usually between 10% and 20% of your expected settlement value. For example, if your case is worth $100,000, you might qualify for $10,000 to $20,000 in funding.
The terms clearly state what you’ll pay back if your case settles successfully. This includes the original funding amount plus fees. Fees typically range from 15% to 40% depending on how long your case takes to resolve.
The offer explains different funding options if available. Some companies offer smaller amounts with lower fees or larger amounts with higher fees. You choose what works best for your situation.
All terms are provided in writing before you make any commitment. Legitimate funding companies never hide fees or surprise you with unexpected costs later. Everything should be clearly explained upfront.
Step 6: Contract Review and Signature
Before you can receive funding, you and your attorney must review and sign the funding contract. This contract legally binds all parties and protects everyone’s interests.
Your lawyer reviews the entire contract to make sure the terms are fair and reasonable. They check that the fees are competitive and that the contract doesn’t interfere with your case. Never sign without your attorney’s approval.
The contract explains exactly when and how the funding will be repaid. It states that repayment only happens if your case settles or wins at trial. If you lose your case, you keep the money and owe nothing back.
The contract also explains what happens if your case takes longer than expected. Some contracts have escalating fees over time while others keep the same rate throughout your case.
Both you and your attorney must sign the contract before any money changes hands. Some funding companies allow electronic signatures while others require original signatures. This process usually takes just a few hours once everyone agrees to the terms.
Step 7: Funding Distribution
After all paperwork is signed, the funding company sends your money using your preferred method. Most people receive their funds within 24 hours of signing the contract.
Direct deposit is the fastest option if you have a bank account. The money goes directly into your account and is usually available the same day or next business day.
Wire transfers are another quick option that puts money in your account within hours. However, your bank might charge a small fee for receiving wire transfers.
Overnight checks are available if you prefer physical checks or don’t have a bank account. The check arrives the next business day and you can cash it at most banks for a small fee.
Some funding companies also offer prepaid debit cards loaded with your funding amount. This gives you immediate access to the money without needing a bank account.
The funding company sends you confirmation of the payment method and tracking information when applicable. They also provide customer service contact information if you have any questions about receiving your funds.
Step 8: Using Your Funding Money
Once you receive your funding, you can use the money for any purpose you choose. There are no restrictions on how you spend the money or reporting requirements.
Most people use car accident lawsuit loans to pay immediate expenses like medical bills, rent, utilities, and groceries. This money helps you maintain your normal lifestyle while your case is pending.
You can also use the funding to pay for car repairs or buy a replacement vehicle if yours was totaled. Having reliable transportation is important for getting to medical appointments and work if you’re able to return.
Some people use funding to pay down credit card debt or other bills they fell behind on after their accident. This helps protect their credit score during a difficult financial period.
The key is using the money wisely since you’ll have to pay it back with fees if your case settles. Avoid spending the money on unnecessary purchases or luxury items that don’t help your current situation.
What Happens During Your Case
After receiving funding, your life continues normally while your attorney works on your case. The funding company doesn’t interfere with your lawsuit or pressure you to settle quickly.
You continue with your medical treatment as recommended by your doctors. Complete all prescribed therapy and follow your doctor’s orders. This documentation strengthens your case and helps justify your settlement demand.
Stay in regular contact with your attorney about your case progress. Attend all depositions, mediations, and court hearings as scheduled. Your cooperation helps move your case forward efficiently.
The funding company might contact your attorney periodically for case updates. This is normal and helps them track their investment in your case. They don’t contact you directly or interfere with legal strategy.
If your case settles quickly, you pay lower fees because the money wasn’t outstanding for long. If your case takes years, the fees accumulate but you still only pay if you win.
Settlement and Repayment Process
When your case finally settles, your attorney handles all the money distribution including repaying your lawsuit loan. This protects you from having to manage the repayment yourself.
Your lawyer receives the settlement check from the insurance company or defendant. They deposit it in their trust account and calculate all the deductions including their fee and case expenses.
The funding company gets paid their portion according to your contract terms. Your attorney sends them the exact amount owed based on how long your case took to resolve.
You receive the remaining settlement money after all deductions. Your attorney provides a detailed accounting showing how the settlement money was distributed to each party.
If your case doesn’t settle and goes to trial, the same process applies if you win at trial. If you lose your case completely, you keep all the funding money and owe nothing back to the funding company.
Tips for a Smooth Process
Following these tips helps ensure your car accident lawsuit loan process goes smoothly from start to finish.
Be completely honest on your application and with all parties involved. Providing false information can void your funding and hurt your case. The truth always comes out during the investigation.
Respond quickly to requests for information or documentation. The faster you and your attorney provide requested information, the faster you’ll get approved and receive your money.
Ask questions about anything you don’t understand. Legitimate funding companies want you to fully understand the terms and process. They should be happy to explain anything that’s unclear.
Keep good records of how you use the funding money. While there are no restrictions, keeping records helps with tax planning and personal budgeting during your case.
Stay in touch with your attorney throughout your case. Regular communication helps your lawyer provide accurate updates to the funding company and keeps your case moving forward.
The car accident lawsuit loan process is designed to be fast and simple while protecting everyone involved. Understanding each step helps you know what to expect and makes the process less stressful during an already difficult time.