The Underwriting Process for a Lawsuit Cash Advance

If you are searching for a lawsuit cash advance you are probably unclear on how your case will be evaluated. When LawLeaf receives an application for lawsuit funding its our responsibility to get your information over to an underwriter immediately. We go through the necessary processes ensuring your application and documentation is received in the appropriate manner. Once the information has been obtained from your attorney the underwriting process begins.

An underwriter is typically an attorney or insurance adjuster that works for the investor or hedge fund. An underwriter can be a full time employee of the fund or work or provide services on a case by case. The underwriter’s main responsibility is to review the documentation presented by your attorney and make a decision if the case is viable. The underwriter will be interested in the following:

Liability - An underwriter will review the claim and make a judgment based upon liability. If there is clear liability there is a good chance you will get approved for a lawsuit cash advance.

Length of case or time frame - An underwriter will also be interested in the amount of time a case will take to settle. If the case is less than a year from settlement the likelihood of an approval increases. Hedge funds typically like cases in which a settlement is near. If they believe there is clear liability and a settlement is not far off, they will be more likely to extend an advance to a client.

Settlement offer - If you have received a settlement offer in writing this can improve your chances of getting an approval. While you may not agree to the settlement offer it shows the underwriter the defense has admitted liability and interested in settling the case out of court.

Contingency fee basis - You must be represented by an attorney that is hired on a contingency fee basis. If you are paying an attorney an hourly rate etc. a fund will not approve your for a lawsuit cash advance.

Second rounds of funding - If you have already received funding on the case it can be harder to receive additional monies on the case. At LawLeaf we have been successful at getting second and third rounds of funding for some clients.

Conversation with the attorney - The last step in the process is typically a conversation with an attorney. An underwriter may have additional questions about the lawsuit. If the underwriter is considering funding the case a conversation with the attorney can sway them to approve funding against your claim.

The underwriting process is probably the single most important part in the lawsuit funding process. Ultimately the underwriter will make the decision of whether or not the case is worth funding.

If you have additional questions about the underwriting process, contact LawLeaf today.

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