Top 5 Structured Settlement Loan Companies
Structured settlement loan is primarily a cash advance that is provided to you during and while a lawsuit is pending. In general, structured settlement loan is 10% less than the amount that you, as a claimant, are actually pursuing in the pending lawsuit. But unlike traditional loans, settlement loans do not require collateral to be approved or awarded. Therefore, employment history, your capability to pay a loan, your existing income, and even a credit check are no longer necessary.
But are structured settlement loans really classified as traditional loans? No, a structured settlement loan is different from a traditional loan. Alongside the fact that structured settlement loans do not require collateral and grueling background checks, this type of loan do not require the lendee to pay anything to the lendor if he had lost the lawsuit. The only requirement and qualification that you need to fulfill in availing a settlement loan is to have a strong case. Lawsuits that are evidently frivolous such as being moot and just forum shopping would have difficulty in being approved for a settlement loan.
While there may be plenty of settlement loan providers, your attorney or counsel does not belong with them. The American Bar Association primarily prohibits a counsel to provide structured settlement loan to his client as to preserve the counsel-client relationship and to prevent a possible conflict of interest. But would it possible for you to owe money from your counsel? Yes, you may actually owe your counsel money during the trial but not, in any way, in the form of a structured settlement loan.
Read More: Top 10 Legal Funding Companies
While frivolous cases could and would not qualify to avail of structured settlement loans, majority or most type of lawsuits could. Some of the most common types of lawsuits that could automatically qualify for settlement loans include:
- Personal Injury
- Motor Vehicle and Passenger Injury
- Copyright Litigation
- Civil Rights
- Divorce Funding
Applying for a structured settlement loan, in general, should not cost you. Most established loan providers would not require most of their prospective clients an application and even upfront fee. However, your selected loan provider should consult with your counsel in terms of the merit and status of your case prior to granting your application. It is in this case that you could be charged by your attorney when he would be requested to transact in your behalf with the loan provider.
Read More: Top 10 Pre Settlement Funding Companies
In terms of the loan amount, most structured settlement loans could provide you anything between 10 t 25 percent of your total projected case value. Values of the loan amount that you could actually avail would vary depending on the amount that you are claiming. While there would be no standard in terms of the loanable amount, it is important that you do your research to actually find the best loan provider.
Repaying for structured settlement loan if you had won the lawsuit is primarily covered by your counsel and the loan provider. While there is no standard procedure on how the loan must be repaid, it is still important for you to consult with your counsel on how the claim could actually be used in terms of repaying the structured settlement loan.
Top 5 Structured Settlement Loan Companies:
Get legal funding within 24 hours for your bills. Even if you lose your case, you still win with Oasis – you get to keep the money.
Access lump sum cash from your structured settlement when you need it most. SenecaOne can help you take control of your financial future today.
J.G. Wentworth is the nation’s largest purchaser of structured settlement payments & annuities, as well as your go-to source for home mortgages. To learn about all of the financial options that we have to offer at J.G. Wentworth, visit our website now!
Global Financial is the nation’s leader in pre-settlement cash advances. We offer the most professional and experienced staff along with the most competitive rates.
Esquire Bank is a full-service bank serving professional service firms, law professionals, small to mid-size businesses, and individuals in Garden City, Palm Beach Gardens, & surrounding New York areas.
If you are looking for a structured settlement loan, it would be for your benefit to conduct even the simplest research for most loan providers online. While there may be no standard loan amount – and even restriction on how much you could avail – doing research online could help you get the best deal in getting a structured settlement loan.
While comparing the fees and even rates for most loan providers online could save you much time and other resources, still nothing beats consulting with your counsel in actually availing a structured settlement loan. In fact, your counsel is indispensable even in qualifying for structured settlement loans. While there may be no background check or even collateral needed for you to qualify for most structured settlement loans, all loan providers require their prospective client’s counsel to actually justify the merit and, therefore, the admissibility of your case with their loan program. While most established loan providers do not application and even other upfront fees, your counsel would have to charge you for actually appearing in your behalf to justify your merit’s case not only in court but also with the loan provider.
So, here is a list of requirements that you need to comply in applying for a structured settlement loan,
Full Name, Plaintiff
The registered full name of the case’s plaintiff that appears in all the documents for the trial is primarily required to apply for a structured settlement loan. The name of the person that appears in the case’s documents is primarily used by the loan provider as the same person who would be paying the loan amount in case that the suit is won.
This should be your current address and not necessarily as what appears in the case documents. If you had relocated and it is your former address that had been stated with the documents, it would be necessary to disclose the discrepancy in the addresses with your application for a structured settlement loan.
Contact Information, Plaintiff
This information should include your working or current number and e-mail address as stated in your case documents. The status of your application for a structured settlement loan could be provided or relayed via phone or e-mail.
Full Name, Counsel
This is very important in your application for a structured settlement loan as it is your counsel who would justify the merit of your case with the service loan provider. The counsel that should be applied with your structured settlement loan is your present counsel that handles your pending case.
Firm Name, Counsel
This is, indeed, one of the most crucial information that your chosen loan provider should know. While the lendor would not perform background or credit check on you, they would with your counsel. Some information that they would require from your counsel include some of the cases that he had handled in the past.
Firm’s Contact Information, Counsel
This should include the address and contact number of your counsel’s firm where he could be contacted regarding your application for a structured settlement loan. If you have to accomplish the application form, it is important that you confirm with your counsel all of the contact information that you would be supplying about his firm.
Other Important Information
Other information that you need to supply in your application for a structured settlement loan include:
- Date of the incident
- Description or summary of the incident
- The overview of the damages or losses
- The loan amount
A Traditional Loan Or A Structured Settlement Loan
It is rather normal for you to start weighing in the difference between availing a traditional loan and structured settlement loan when you are in a middle of lawsuit. From your counsel’s fee to most of your missed work days, having a structured settlement loan could help you ease your mind from the daily nuisances of a pending lawsuit. Structured settlement loans are different from traditional bank loans not only in terms of the application process but by simply the nature of how the structured settlement loan is actually used. Most loan providers would not even consider a structured settlement loan a loan. First, it is because structured settlement loans would not require a repayment when you had lost in the lawsuit and collateral for your loan to be processed. The only requirement that you could actually need to avail of a settlement loan is to have a strong and meritorious case. In deciding what financial assistance you should avail during the progress of your lawsuit, it is important that you consider and understand all options that are made available for you.
Traditional Bank Loans
Bank loans are simply one of the most common and oldest types of lending product. In general, a bank loan would require you to put up qualified collateral to avail of the loan amount that you have requested. During your application for a bank loan, the processing department of your bank would have to conduct both background and credit check to ensure that you have the capability to actually repay what you would have to borrow. The result of their investigation primarily determines your qualification with their loan program. Bank loans, as with any type of loans, require repayment and disbursement of the principal amount and pre-determined interest rate, respectively. The amount that you could also avail is proportional to your income, that is, the higher you earn, the greater the loan amount you could actually avail.
Banks, in general, do not provide loans based on lawsuits or based on the projected value of your settlement. Most, if not all, banks consider a loan made on a projected value of a pending lawsuit a bad investment and, therefore, would not consider most applications in this case. It is, therefore, more beneficial for you to consider structured settlement loan.
Structured Settlement Loan
Your qualification to all structured settlement loans is based on the merit of your case. The application process of this type of loan is based on how your counsel could justify the merit of your case; standard application information such as your credit history and income statement is irrelevant in your qualifications for a structured settlement loan. Another feature of structured settlement loans is the non-requirement for the loan amount to be repaid in case that you do not have the verdict in your favor. Agreement signed by the plaintiff in availing a structured settlement loan include, however, the repayment of the original loan amount, fees, and interest when the plaintiff had won in the lawsuit.
It is important to consult with your counsel when availing structured settlement loans. In fact, his role in your application is indispensable as it would be your counsel’s responsibility to qualify you for your loan. All structured settlement loan providers would actually require the presence of your counsel during the assessment and processing of your application.
Structured Settlement Loan – The Advantages
With all the hassle of a pending lawsuit, most plaintiffs could actually enjoy the benefits of structured settlement loan. While most, if not all, lawsuits would take months and even years before reaching verdict, a structured settlement loan could greatly benefit most plaintiffs with most expenses related in the progressing of his case. In fact, most structured settlement loans would actually award 10 and up to even 25 percent of the total projected case value.
While most of their clients are more than ready to just jump in with any offer to help ease their lawsuit-related expenses, their counsels, on the other hand, had mixed opinions in actually availing a structured settlement loan. While most counsels had more than witnessed the difficulties that their clients would actually go through during a trial, more often than not, the only direction that they could advice their clients to go through is to actually apply for a structured settlement loan. In fact, the fastest way that their clients could actually get cash is to avail of a structured settlement loan. However, most counsels do know that structured settlement loans could actually hinder the early settlement of their client’s case. In fact, a number of issues could arise because of the existence of a structured settlement loan. It is, therefore, beneficial for any plaintiff to actually consult with their counsel in their application for a structured settlement loan.
One of the first things that you should understand about structured settlement loans is that it isn’t a loan at all. In fact, most lending institutions don’t recognize structured settlement loan to be a loan even by nature. In general, structured settlement loans are categorized as a non-recourse debt, a type of secured loan which require qualified collateral. The only collateral that you would need when applying for structured settlement loans is to have meritorious or strong case. As opposed to standard loan application, applying for a settlement loan primarily eliminates the need to actually go through the grueling task of certain background and credit checks. The only factor that is actually weighed in is the merit and the projected value of your pending case.
The loanable amount in structured settlement loans actually varies. This is because a plaintiff could actually loan an amount equivalent to your assessed case value. While most people would actually receive a different loan amount; most settlement loan programs would actually provide anything in between 10 to 25 percent of the total projected value of your pending case. In fact, one plaintiff could actually receive a loan amount higher than $100,000.
One of the advantages of a structured settlement loan is that you don’t have to win your case just to pay even a single cent. This is simply one of the benefits of availing a structured settlement loan; traditional loans would actually require a repayment regardless of the outcome of the lawsuit. The structured settlement loan is a no-risk loan. This is why it is the most recommended loan type for most plaintiffs.
Structured Settlement Loan – The Drawbacks
A structured settlement loan is primarily availed and used by a plaintiff during a pending lawsuit. In general, a structured settlement could avail a plaintiff a big lump sum; this is primarily known as a settlement loan. While it would be really beneficial for a plaintiff to avail of a substantial cash while the case is actually pending, most of them would have to understand both the disadvantages and drawbacks of a structured settlement loan.
One of the primary drawbacks of a structured settlement loan is taxes. The money that you would have to receive is primarily taxable. It is, therefore, mandatory for any plaintiff to pay the prescribed state and federal taxes for a particular calendar year. Aside from the foregoing taxes, you would also have to pay self employment levy, a known tax-type that is implemented to people who are not getting Medicare and social security withheld from their monthly income. It is, therefore, a prerequisite to actually understand all the taxes that are to be levied to your loanable amount before actually availing of any structured settlement loan program. It would be beneficial for you to not only consult with your counsel but with a financial adviser that had previously worked with structured settlement loans.
Another drawback of availing a structured settlement loan is the loss of future cash that you could actually receive in the total claim amount. It is because the loan provider would actually get an amount proportionate to what you had borrowed during the trial. While the repayment system of structured settlement loan is different from that of the private loan providers, the amount that a structured settlement loan would actually get from the total amount of settlement would not, in general, differ from those that are provided by other loan institutions. While plaintiffs could actually avail anything between 10 to 25 percent of the projected case value, a structured settlement loan provider is expected to absorb 20 to 40 percent of the total structured settlement that a plaintiff could actually be awarded – alongside the principal amount that was provided as a loan. While structured settlement loans are no-risk loans, it is understandable that all loan providers would only provide what you need only at a profit.
You could also expect a higher interest rate with a structured settlement loan than those that are provided with other loan institutions. In general, the prevailing interest rate for structured settlement loans is from 4 to 9 percent, each plaintiff that could actually avail of this type of loan would actually vary depending on your value and even the success rate of the lawsuit. While most loan providers would not require their clients with upfront fees, such as that with processing and application fee, some institutions would have to add or factor in considerations such as that with the risk that the loan provider would have to assume.
Doing research online could greatly benefit you in getting the best deals for a structured settlement loan. However, it is important that you consult with your counsel as he would greatly play a role not only in winning the lawsuit but also in getting the structured settlement loan that you have applied for.
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