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Boy Scouts Lawsuit Update 2025

The Boy Scouts of America is one of the most prominent organizations and has an estimated membership ranging between 1 million to 2.3 million people.

But like most prominent institutions, it had its share of problems, including sexual abuse cases dating back to when they first began accepting boys as members through 1991.

Below are the latest updates for the lawsuit based off our research and our partner attorneys.

More Than Five Years: The Complete Timeline of the Boy Scouts of America Case

February 2020: Bankruptcy Filing Amidst Avalanche of Claims

The Boy Scouts of America was facing nearly 300 abuse lawsuits when it filed for Chapter 11 bankruptcy in Delaware in February 2020, coming after several states passed laws allowing adults to file previously time-barred lawsuits against their childhood abusers and negligent institutions.

The 115-year-old nonprofit said it anticipated at least 1,700 abuse claims when it entered Chapter 11, but an aggressive blitz of law firm advertising and publicity brought an avalanche of claims, with the number of alleged victims topping more than 80,000 within a few months.

Over 82,000 Boy Scout claims for sexual abuse were filed in the bankruptcy case, making it one of the largest abuse scandals in U.S. history, with the organization’s internal records and court testimony revealing that more than 7,800 leaders sexually abused children over a 72-year period.

The scope of this tragedy is staggering. From 1944 through 2016, the Boy Scouts identified over 12,000 alleged victims of abuse. But these numbers likely represent only a fraction of those harmed, as sexual abuse of boys remains one of the least-reported crimes due to feelings of shame and the tactics abusers use during grooming.

2020-2022: Complex Negotiations and Mounting Costs

The bankruptcy case involved intricate negotiations with multiple parties: the Boy Scouts organization itself, hundreds of local councils, sponsoring organizations including churches, and numerous insurance companies.

The Church of Jesus Christ of Latter-day Saints (LDS Church), once the largest sponsor with over 400,000 Scouts, initially offered $250 million, but U.S. Bankruptcy Judge Laurie Selber Silverstein rejected this in July 2022 due to unresolved insurance disputes.

Meanile, The United Methodist Church agreed to contribute $30 million to a victim compensation fund, releasing congregations that chartered troops and packs from future legal responsibility related to BSA sexual abuse.

Major insurance companies eventually agreed to contribute substantial amounts: Hartford Financial Services Group contributed $787 million and Chubb Ltd. contributed $800 million, both among the organization’s major liability insurers.

September 8, 2022: Bankruptcy Judge Approves Settlement

Judge Silverstein approved the $2.46 billion Boy Scouts of America settlement on September 8, 2022, making it one of the largest sexual abuse settlements in U.S. history.

The settlement created the Scouting Settlement Trust with contributions from:

  • The Boy Scouts of America organization
  • Over 250 local councils (contributing at least $515 million)
  • Major insurers, including Hartford and Chubb
  • Sponsoring organizations, including churches

Local councils were required to contribute at least $515 million and have divested numerous properties, such as selling camps, art, land, and leases to fund their contributions.

April 2023: BSA Emerges From Bankruptcy

In April 2023, the BSA officially emerged from bankruptcy and announced it would begin distributing compensation from the court-approved Boy Scout Settlement Trust to more than 82,000 abuse survivors.

September 2023: First Payments Begin

Initial payments to 7,000 “quick pay” claimants opting for $3,500 began in September 2023.

Claimants opting for the $3,500 “quick pay” option retained approximately $2,100 to $2,450 after attorney fees, depending on their legal agreements, with contingency fees typically ranging from 33% to 40% of settlement awards.

These quick pay amounts represented a fraction of what many survivors would have received through full claims evaluation, but offered faster payment with less scrutiny for those willing to accept smaller compensation.

February 2024: Supreme Court Allows Settlement to Proceed

In February 2024, the U.S. Supreme Court rejected an emergency request to halt the settlement, allowing payments to proceed while it considered the Purdue Pharma bankruptcy case involving similar legal issues.

The settlement faced opposition from approximately 144 survivors who argued that it unlawfully shielded non-bankrupt entities, such as local councils and churches, from future lawsuits.

This group of dissenting survivors sought to preserve their right to sue local scouting organizations and churches that chartered troops, as they believed the settlement didn’t hold all responsible parties accountable.

February 2024: Advance Payment Program Launched

In February 2024, the Scouting Settlement Trust announced it would accelerate partial payments to eligible claimants, many of whom were elderly and in poor health, with approximately 2,914 payments totaling more than $7.3 million already issued by that time.

The Advance Payment Program allowed eligible claimants to receive payments of $1,000 before their allowed claim amount was finally determined.

Judge Barbara Houser, the retired judge overseeing trust administration, explained: “We have been asked repeatedly by Survivors if we can distribute some money while the claims process is underway, and we have found a way.”

May 13, 2025: Third Circuit Upholds Settlement

On May 13, 2025, the U.S. Court of Appeals for the Third Circuit affirmed the bankruptcy court’s plan confirmation order, dismissing appeals filed by a group of sexual abuse survivors and holdout insurance companies.

Judge Marjorie Rendell stated that overturning the settlement would cause it to “implode,” disrupting compensation already flowing to survivors.

This decision was a crucial victory for survivors, representing a major step forward in finalizing the settlement structure. However, it didn’t end the appeals process or release the funds held in escrow.

June 2025: Costs Exceed Original Projections

In June 2025, the cost of compensating survivors had exceeded $7 billion, according to the Wall Street Journal, more than twice the amount originally estimated in the organization’s bankruptcy plan of up to $3.6 billion.

As of the end of May 2025, the settlement trust had distributed $164 million to 22,605 abuse survivors, with approximately 83 non-settling insurance carriers having been billed a total of $6.99 billion since September 2024, though no payments had been received from those insurers.

The gap between what survivors were promised and what funding is actually available continues to grow, with insurance companies disputing their obligations and refusing to pay billions in billed amounts.

Current Status: Ongoing Appeals Delay Full Payments

Since the May 2025 ruling, one of the appellants filed a petition for an en banc review requesting that all appellate judges for the Third Circuit reconsider the decision, and if denied, the appellants could file a writ of certiorari with the Supreme Court.

The Settlement Trustee has reviewed and made determinations on over 50% of filed claims, continuing to review claims and make determinations as the appeals process continues.

The reality is stark: while some progress has been made, tens of thousands of survivors remain in limbo, waiting for claim determinations and full payment distributions.

Now: The Extended Wait for Full Payment

As of late 2025, BSA survivors face a complex and uncertain payment timeline:

Only partial payments have been distributed so far. As of May 2025, over $164 million has been distributed to more than 22,000 survivors. Two years later, settlement trustee Barbara Houser has distributed just over $245 million among 31,000 people.

However, these represent only partial payments: often a tiny fraction of survivors’ total approved claims. Many were told they’re entitled to hundreds of thousands of dollars, but instead have been paid less than 2% of what they’re owed, amid legal appeals and fights with insurers.

$1.4 billion remains locked in escrow. Approximately $1.4 billion is being held in escrow until all appeals are exhausted and the plan confirmation order becomes a final order, meaning the Trust will not have the funds required for a second payment from the Trust until that time.

This represents more than half of the original $2.46 billion settlement amount. That’s money that cannot be distributed until every legal challenge is resolved.

Appeals could extend into late 2025 or 2026. Once the en banc court rules, it is still possible that a losing party may seek to have the decision further reviewed by the United States Supreme Court, meaning that funds necessary for a second distribution from the Trust to survivors with allowed claims will remain in escrow until all appeals are exhausted.

Those escrow funds will remain out of reach until at least mid-October, when time runs out for the objecting survivors to appeal to the US Supreme Court.

Tens of thousands of claims still await evaluation. Two years after the trust’s launch, it has sent money to fewer than half of the roughly 60,000 men who claimed they were abused as scouts, with thousands of claims still awaiting review.

Nearly 20,000 BSA claims still have to be reviewed.

Insurance litigation adds years of uncertainty. There are approximately 83 insurers that have not yet settled their insurance policies, and the Settlement Trustee has brought an action against these non-settling insurers in the Texas Federal Court seeking payment.

The value of the Trust’s rights under those insurance policies could be several billion dollars, but this insurance coverage litigation is extraordinarily complex, and unless it is able to be settled on reasonable terms, it could take years to litigate to a final conclusion.

Survivors won’t receive 100% of valued claims. The Trust does not know how much claimants will receive on allowed claims, but it almost certainly will not be 100%.

With total liabilities now estimated at over $7 billion against a settlement fund originally valued at $2.46 billion, the shortfall is substantial. Survivors will receive only a percentage of their approved claim values, but no one knows yet what that percentage will be.

What This Timeline Means for Survivors Right Now

You’ve waited since February 2020, when the Boy Scouts filed for bankruptcy. That’s over five years of participating in legal proceedings, submitting detailed documentation of your abuse, and living with the trauma of having your experiences become part of public court records.

Survivors have described the process as emotionally taxing, requiring a detailed recounting of their abuse for evaluation, often reopening old wounds.

The emotional toll is compounded by financial pressure and the uncertainty of when full payments will arrive.

More than 2,000 claimants are older than 80, and nearly as many have died waiting for closure.

For elderly survivors, every month of delay carries profound significance. Some will never see the justice they fought for.

Even with some initial payments distributed, the reality is sobering. Most survivors have received only a tiny fraction of their approved claims, and full payments won’t be made until appeals are exhausted, the $1.4 billion escrow is released, and insurance litigation concludes, which may not happen until late 2026 or beyond.

During this extended waiting period, your financial needs don’t pause.

The Financial Reality of Waiting for Payment

Therapy costs continue accumulating. The trauma of childhood sexual abuse requires ongoing mental health treatment. Many survivors need regular therapy sessions, specialized trauma counseling, or psychiatric care to process what happened decades ago and manage the re-traumatization of the legal process.

After over five years of bankruptcy proceedings, detailed recounting of abuse, and the stress of watching other survivors die waiting, consistent mental health care isn’t optional; it’s essential. But therapy costs money that must be paid now, not in 2026.

Medical expenses mount beyond mental health care. Many survivors face physical health consequences from their abuse or from the stress of over five years of bankruptcy proceedings and claims evaluation. Chronic conditions, medications, and specialist appointments—all require current payment.

Housing payments don’t wait for escrow release. Rent or mortgage payments come due every month, regardless of when appeals are finally exhausted and the escrow funds are released. Falling behind creates housing instability that persists even after settlement money eventually arrives.

Daily living expenses continue relentlessly. Utilities, groceries, transportation, insurance premiums, and other necessities require cash flow during the waiting period. These aren’t luxuries. They’re survival expenses that can’t be deferred until 2026.

Attorney fees will significantly reduce final payments. Many survivors hired private attorneys to navigate the bankruptcy proceedings, with contingency fees typically ranging from 33% to 40% of their settlement awards, reducing their net compensation.

If you’re awaiting a $50,000 claim determination, your actual payment after attorney fees may be only $30,000-$33,500. And with survivors not receiving 100% of claim values, the exact amount could be even less.

Credit card debt compounds while waiting. If you’ve been using credit cards to survive during the five-plus years of bankruptcy proceedings, interest charges have been compounding month after month. At 20-30% annual interest rates, thousands of dollars in debt can accumulate—debt that will consume your settlement when it finally arrives.

The elderly face a particularly cruel reality. More than 2,000 claimants are older than 80, and nearly as many have died waiting for closure.

For survivors in their 70s, 80s, and beyond, each additional month of delay isn’t just financially painful. It may mean the difference between receiving compensation during their lifetime or leaving it as an estate matter. 

Some will never see their settlement payments. They’ll die waiting, just like Oscar Onadia from the Rikers case, who fought for justice but passed away before seeing a resolution.

Financial crisis undermines healing. After decades of carrying the trauma of childhood sexual abuse, survivors deserve the opportunity to focus on healing. But financial desperation, choosing between therapy and groceries, between medication and rent, creates ongoing stress that makes healing impossible.

The settlement is meant to provide resources for recovery and rebuilding. However, if most of the money is spent paying off debt accumulated during the waiting period, the settlement fails to achieve its purpose.

4 Frequently Asked Questions and Answers On How You Can Move Forward

Can You Still Make Your Claim Against The Boy Scouts of America?

The Boy Scouts of America filed for bankruptcy to start the process by setting up a trust that will be set up to compensate all the victims.

The United States Bankruptcy Court in the Delaware District has set a deadline for victims to file claims against Boy Scouts. Unfortunately, the 5 pm eastern on November 16, 2020, has come and passed. As a result, it’s too late to file the claim against the Boy Scouts of America in their Chapter 11 Bankruptcy case. However, you can hire local counsel and petition the Court for an exemption with a good enough explanation to sway them to accept your petition.

What’s the voting process for the settlement in the ongoing Boy Scout lawsuit process?

If you filed a claim yourself, the BSA and its agents have your current address. Then, the documents will reach you to vote on any plans they send over. But, again, it is best to work with your lawyer and consult before deciding how to vote.

The vote is not just about you – the Torts Claimants’ Committee controls a significant block of votes. So even if your plan gets approved, it can still fail with their opposition, and they’ll have more power to shape legislation moving forward.

How Long Will This Process Take?

The Boy Scout of America has negotiated with various parties to ensure that victims are compensated as soon and reasonably possible. However, there is no specific timetable for when these negotiations will be finished, though it’s expected they’ll continue until all the involved groups can agree on what should happen next- which might take some time.

The Boy Scouts of America has a tough decision about whether or not it should continue with its traditional program. The main issue for the organization comes down to what assets are used, how much insurance coverage applies and if any indemnity is paid between BSA’s national office to keep local councils afloat while they figure this out.

Can You File A Case Against Other Entities?

Yes, you can pursue claims against the BSA. As of now, a bankruptcy filing does not affect your options for pursuing legal action against local councils and sponsoring organizations and other individuals, including abusers themselves. However, lawsuits must be filed due to applicable state statute limitations on time frames. Consult with an experienced lawyer to understand the details about possible outcomes.

The statute of limitations for child abuse is different in every state and will depend on your age when it happened. Additionally, some states are drafting legislation to revive barred or expired cases if the victim was a minor when they were victimized.

Final Thoughts

It’s a long and windy road for the Boy Scouts of America, but it looks like they’re finally coming to an end. If you’ve had any run-ins with this organization that led your child or yourself to be sexually abused or molested, now is your chance to come forward and get justice. Unfortunately, the process is complicated because multiple entities are involved in the settlement claim.

Direct Legal Funding offers loans specifically designed for court cases like yours, where repayment won’t start until after trial results are finalized and awarded compensation. We can help you with lawsuit loans to keep you moving towards the final justice against the terrible acts.

Contact Direct Legal Funding Now

Call us at 866-941-5588

Representatives are available to discuss your situation confidentially. There’s no pressure, no obligation, and no cost for the initial consultation.

We’ll answer your questions honestly. We’ll explain exactly how funding works. We’ll help you understand whether pre-settlement funding makes sense for your specific circumstances, your claim value, your timeline, and your financial needs.

If funding isn’t right for you, we’ll tell you. If it makes sense, we’ll move quickly to help.

Elective Option for Camp Lejeune Claims: What You Need to Know

The U.S. Department of Justice (DOJ) and the Department of the Navy (DON) started offering the “Elective Option” for Camp Lejeune Justice Act (CLJA) claims on September 6, 2023. This process was designed to make it faster and easier to get a Camp Lejeune claim settlement. With a clear understanding of this option, you are well-equipped to secure a settlement that lines up with your expectations.

Direct Federal Lending is a leading provider of Camp Lejeune lawsuit loans. If you are interested in our legal funding, contact us today. We also provide answers to some of the most common questions about the Elective Option for Camp Lejeune claims below.

What Is a Camp Lejeune Justice Act Claim?

On August 10, 2022, President Biden signed the Camp Lejeune Justice Act. Part of the Honoring our Promise to Address Comprehensive Toxics Act, CLJA gives people the right to recoup damages if they were exposed to contaminated water at the Camp Lejeune Marine Corps Base. 

There are restrictions on who can capitalize on CLJA. To qualify, you must have been present at Camp Lejeune at any time between the middle of 1953 through 1987. You must have been at the base for at least 30 days.

What Is the Elective Option?

CLJA claims can be tricky, but the Elective Option helps speed up the resolution process. This option consists of a framework for handling these claims.

With the Elective Option framework, DON focuses on specific aspects of a claim. It generally reviews the length of time that a person was located at Camp Lejeune and the disease that may be linked to contaminated water exposure. 

DON uses Agency for Toxic Substances and Disease Registry (ATSDR) criteria to conduct an evaluation. If it finds that a claimant is dealing with a disease that was likely linked to contaminated water exposure at Camp Lejeune, it offers a settlement.

How Much Money Can You Get with an Elective Option Settlement?

ATSDR criteria impact how much money is awarded as part of an Elective Option settlement. The agency considers how long you were at Camp Lejeune and if a disease you are dealing with may be linked to contaminated water exposure. It uses a wide range of evidence in its evaluation. 

 

If you qualify for a settlement, your compensation amount depends on the ATSDR tier. There are two tiers:

Tier 1

You may fall into this category if you are dealing with any of the following diseases:

  • Bladder cancer
  • Liver cancer
  • Kidney cancer
  • Non-Hodgkin’s lymphoma
  • Leukemia

In this tier, you may be able to receive any of the following settlement amounts:

  • $150,000 if you spent anywhere from 30 to 364 days at Camp Lejeune
  • $300,000 if you were at the base for one to five years
  • $450,000 if you were located at the base for more than five years

Tier 2

Examples of diseases that fall into Tier 2 include:

  • Kidney disease
  • Parkinson’s disease
  • Systemic sclerosis/scleroderma

To qualify for a Tier 2 settlement, you must show that you are dealing with any of these diseases or other serious health conditions that may be linked to contaminated water exposure.

If you meet Tier 2 criteria, you may be able to get a settlement in any of these amounts:

  • $100,000 if you were at Camp Lejeune for 30 to 364 days
  • $250,000 if you spent one to five years at the base
  • $400,000 if you were located at the base for more than five years

You can receive additional compensation if you are submitting a wrongful death claim on behalf of a deceased person (decedent). In this scenario, you can get $100,000 on top of the previously listed settlement amounts for diseases in Tier 1 and 2.

Is the Elective Option Worth Your Time?

The Elective Option provides an additional avenue for getting CLJA claim compensation.

For example, you can use this option to share evidence that shows you are dealing with a disease caused by contaminated water exposure at Camp Lejeune. You can also highlight how you were located at the base within the time frame required for CLJA claims.

From here, DON will review your claim. It will use evidence to figure out if you are entitled to compensation, and if so, just how much.

Since there is only a limited amount of evidence that DON will have to evaluate, it may not take too long to get a settlement offer. As soon as you approve your proposal, you will get money you can use to cover losses you have incurred due to your contaminated water exposure.

How Do I Qualify for the Elective Option?

To take advantage of the Elective Option, get your military records since these will show that you were present at Camp Lejeune and just how long you were there. You will also need to submit an administrative request to DON.

If you want to submit a claim based on the wrongful death of a spouse, child, or other family member, you may have the option to do so. To find out if you can, consult with a wrongful death lawyer. You can work with an attorney to provide evidence that shows a decedent was dealing with health problems that may be linked to exposure to contaminated water at Camp Lejeune. Plus, your attorney can advocate for you and make sure your legal rights are protected as you move forward with your claim.

In instances where you were treated for health issues that may be related to contaminated water exposure, you will need to provide evidence to support your claim. Ultimately, it is your responsibility to show that you are dealing with a disease, when it was diagnosed, and how it was treated. Even if you never received a formal diagnosis for your disease, you may be able to provide medical records that show you were coping with associated symptoms. With sufficient evidence, you can boost your chances of getting a fair settlement offer.

If you have already submitted an administrative claim, in the midst of a lawsuit, involved in settlement negotiations relating to a Camp Lejeune contaminated water exposure claim, you may be ineligible for the Elective Option. The DOJ is already handling previously filed lawsuits. It is extending settlement offers, many of which include awards comparable to those provided through the Elective Option.

You have a maximum of two years to submit a lawsuit based on Camp Lejeune contaminated water exposure — and time is running out to do so. CLJA has been in effect since August 2022. This means you have until August 2024 to file your claim, even though you were exposed to contaminated water a long time ago.

There is no requirement to hire a lawyer if you move forward with the Elective Option. It is typically a good idea to partner with an attorney since they can help you navigate this process. Your attorney can gather evidence and make sure your claim is submitted before it is too late. They can also teach you about how lawsuit loans work and help you request one based on your projected settlement amount.

If you are ready to begin with the Elective Option, access the CLJA claim form and more information at the Navy’s website.

Have There Been Any Elective Option Payouts?

The first Elective Option payout was reported on October 30, 2023. This payout totaled $850,000 and was given to three people, according to Reuters.

Two months later, an Elective Option payout of roughly $1.5 million was provided to six people.

Can I Get a Lawsuit Loan and Use the Elective Option?

Per Bloomberg, there were over 117,000 pending administrative Camp Lejeune water contamination claims with the Navy and more than 1,300 related lawsuits in federal court in North Carolina as of October 2023.

There is no telling when these claims and lawsuits will be settled. Fortunately, the Elective Option may speed up the process of getting compensation. It will not prevent you from qualifying for a lawsuit loan, either.

With legal funding, you can get money based on an estimated Camp Lejeune settlement. You can get a pre-settlement loan in a matter of days. In addition, you do not have to repay your loan unless you get compensation.

Where Can I Get a Camp Lejeune Quick Settlement Decision Lawsuit Loan?

Direct Legal Funding takes the guesswork out of a quick settlement decision for the Camp Lejeune lawsuit loan. We are happy to discuss our lawsuit funding options with you. To get started, contact us today.

Camp Lejeune Quick Settlement Decision

On September 6, 2023, the U.S. Department of Justice (DOJ) and the Department of the Navy (DON) finalized the “Elective Option” process for Camp Lejeune Justice Act (CLJA) claims. This option complements others available under the act. It was developed to make it more efficient to resolve these claims.

Direct Federal Lending offers Camp Lejeune lawsuit loans. For more information about them, contact us today. In the meantime, we provide information about the Camp Lejeune quick settlement decision and what it means for those who have filed claims. 

Camp Lejeune Justice Act Claims

The Camp Lejeune Justice Act is part of the Honoring Our Promise to Address Comprehensive Toxics Act. It was put into effect on August 10, 2022.

With CLJA, people can file claims to recover damages for injuries relating to exposure to contaminated water at the Camp Lejeune Marine Corps Base. They are eligible to pursue damages if they were exposed to contaminated water at any point from mid-1953 through 1987. They must have been at this location for a minimum of 30 days.

How the Elective Option Works

The Elective Option serves as a framework to quickly, equitably, and transparently resolve CLJA claims. It involves a DON review on certain aspects of a claim. These may include the type of injury a claimant suffered and the length of time they worked or resided at Camp Lejeune.

Within the Elective Option framework, DON can make settlement offers to qualifying claimants. It can do so to those dealing with diseases that the Agency for Toxic Substances and Disease Registry (ATSDR) has linked to chemicals found in water at Camp Lejeune.


Elective Option Settlement Amounts

How much money a claimant can get with this option varies based on ATSDR requirements. The agency accounts for the strength of evidence that links a specific disease to the amount of time an individual was present at Camp Lejeune.

At this time, there are two categories of diagnoses that dictate how much a claimant may be able to secure in a Camp Lejeune Elective Option settlement:

Tier 1

This applies to claimants with diseases that ATSDR has determined there is evidence of causation, i.e., that exposure to dangerous chemicals at Camp Lejeune led to these health issues. Examples of diseases that meet these criteria include:

  • Kidney cancer
  • Liver cancer
  • Bladder cancer
  • Leukemia
  • Non-Hodgkin’s lymphoma

Claimants in this tier may be able to receive a settlement of $150,000, $300,000, or $450,000. The total amount depends on whether an individual spent between 30 and 364 days ($150,000), one and five years ($300,000), or more than five years (450,000) at Camp Lejeune.

Tier 2

Like Tier 1, a claimant in Tier 2 must be able to show that they are dealing with a disease linked to contaminated water exposure at Camp Lejeune. They must also provide evidence of causation. Some of the diseases that fall into this category of claims include:

  • Parkinson’s disease
  • Systemic sclerosis/scleroderma
  • Kidney disease

A claimant may be able to receive a settlement proposal of $100,000, $250,000, or $500,000. The amount of this offer is based on whether someone was located at Camp Lejeune for a period of 30 to 364 days ($100,000), one to five years (250,000), or more than five years ($400,000).

Along with getting the compensation associated with the diseases in these tiers, any claims in which someone died can receive an additional $100,000 in damages.

Benefits of the Elective Option for CLJA Claims

The Elective Option helps Camp Lejeune claimants get settlement offers close to those of other individuals who are dealing with similar health problems. It involves the use of evidence to determine if someone is entitled to compensation based on their presence at Camp Lejeune. If so, this individual may get a settlement offer that gives them an adequate amount of money to cover all of their related losses.

By narrowing the scope of review, DON can validate the legitimacy of a CLJA claim. From here, a claimant may be better equipped to receive a fair settlement offer faster than ever before.

Who Qualifies for the Elective Option

To qualify for this option, a claimant must submit their administrative request to DON. You will need to provide your military records to show that you were present at Camp Lejeune during the period in which there were concerns about exposure to contaminated water. These records will also provide details about the length of time you spent at this location.

You may be able to file a claim based on a wrongful death. To determine if this is a viable option, partner with a wrongful death lawyer. This allows you to discuss your legal options for pursuing compensation. Your attorney can discuss what documentation you will need to provide to submit your claim.

If you received treatment for a water contamination disease that may be related to your time at Camp Lejeune, you must be able to provide appropriate documentation. You must be able to show that you were treated for the disease and when you were diagnosed with it. If you were never formally diagnosed with a particular disease but have been treating the symptoms of it, you may be able to share this information. This allows you to provide evidence that indicates you have been dealing with a health issue that may be linked to contaminated water exposure at Camp Lejeune.

People who are waiting for an administrative claim to be finalized, pursuing litigation, or involved in settlement discussions are ineligible for the Elective Option. The DOJ is screening already-filed lawsuits. It is extending settlement offers in qualifying cases, and these proposals may be similar to awards given out via the Elective Option.

There is only a two-year time frame for filing Camp Lejeune lawsuits. This window expires in August 2024 since CLJA went into effect in August 2022. The deadline applies even though you may be dealing with a disease caused by contaminated water exposure at Camp Lejeune many years ago.  

You do not have to retain a lawyer to submit an Elective Option claim. However, it may be in your best interests to do so. Your attorney can advocate for you and make sure that your legal rights are protected. They can help you gather evidence and submit your claim in a timely manner.

Those who may qualify for the Elective Option can access the CLJA claim form and other information through the Navy’s website.

Elective Option Payouts

On October 30, 2023, a DOJ attorney noted that three people had accepted payouts via the Elective Option in Camp Lejeune contaminated water cases, Reuters reported. In total, these individuals received $850,000.

In December 2023, the U.S. government paid roughly $1.5 million in claims to six people through the Elective Option.

Elective Option Lawsuit Loans for Camp Lejeune Settlements

The Elective Option provides a fast, easy option to get compensation for those interested in getting compensation due to contaminated water exposure at Camp Lejeune. Yet, many water contamination at Camp Lejeune claims and lawsuits remain outstanding.

As of October 2023, there were over 117,000 pending administrative Camp Lejeune water contamination claims with the Navy, according to Bloomberg. Also, there were more than 1,300 related lawsuits in federal court in North Carolina.

With a lawsuit loan, you can request funding based on a projected Camp Lejeune settlement. The loan gives you money you can use for the duration of your case. As soon as your claim is settled, you get compensation, then repay your loan.

Get Started with a Camp Lejeune Quick Settlement Decision Lawsuit Loan

Direct Legal Funding offers a simple three-step process to obtain a quick settlement decision for Camp Lejeune lawsuit loan. Our team is available to discuss this process and help you determine if now is the right time to get legal funding. To find out more, contact us today.

Roundup Lawsuit Loans

For the many people struggling with injury and other losses due to the use of Roundup and who have filed a claim for settlement, it may be possible to obtain lawsuit funding to help meet financial needs now.

Direct Legal Funding has made the decision to continue to support the needs of Roundup victims who have filed product liability lawsuits against the chemical manufacturer and others.

Though the company has provided lawsuit funding prior for Roundup cases, there was a pause in their ability to fund these cases. However, new insight has allowed for Direct Lending Funding to resume providing this essential financial support to those who need it the most.

Who Qualifies for Funding for Roundup Lawsuits?

For those who are seeking financial compensation after suffering health complications, including cancer, as a result of exposure to Roundup, Direct Lending Funding encourages you to apply for lawsuit funding now. We work with many people facing these types of complications who may be waiting years to receive the settlement they are owed. In the meantime, consider the value of lawsuit funding.

If you suffered the development of cancer after the use of Roundup, you may be able to seek out financial compensation for your losses. Roundup, a type of weedkiller, was initially labeled as a product that was safe to use. However, a report issued in 2015 by the International Agency for Research on Cancer found that this chemical was a potential carcinogen. More specifically, it found that it could be responsible for non-Hodgkin’s lymphoma. It is believed that the chemical’s glyphosate-based herbicides caused these cancers.

If you have filed a lawsuit against the manufacturers of Roundup for losses like this, you may be able to obtain lawsuit funding through Direct Legal Funding.

Direct Legal Funding provides financial compensation through lawsuit funding in the following states:

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  • Tennessee
  • Texas
  • Utah
  • Vermont
  • Virginia
  • Washington
  • Wisconsin
  • Wyoming

What Is Roundup and Its Background?

We encourage you to speak to your attorney about your ability to qualify to file a claim against Roundup’s manufacturer and what steps to take to prove loss. The following is some background on some of the lawsuits playing out today. Roundup is a product made to be used as a “safe” type of weedkiller. It was marketed as such by Monsanto, the maker of the product. Monsanto is now a division of Bayer. Many people have taken steps

to file lawsuits against these companies because they claim that the drug caused their injuries, including the development of cancers, including non-Hodgkin lymphoma and cancers related to it.

Some of the types of related cancers to the use of this chemical include:

  • Anaplastic large cell lymphoma
  • Mantel cell lymphoma
  • Mycosis fungoides
  • Chronic lymphocytic leukemia
  • Cutaneous T-cell lymphoma
  • Sezary syndrome
  • Small lymphocytic lymphoma
  • Follicular lymphoma and hairy cell leukemia

The belief is that the presence of glyphosates in these products is what directly led to the onset of the cancers. There have been various studies that have noted a link between the development of cancer and glyphosate, though Bayer continues to state that there is evidence that this is not always the case.

Many people have filed lawsuits against the manufacturer of the product because of failed communication about the risks that could occur when using this product. Lawsuits claim that the herbicide caused cancer and that there was no warning by the manufacturer about those cancer risks. This has led to class action lawsuits that claim that the company actively worked to deceive the public about how safe this product really was. Many people believe that there were internal notes and memos that documented this risk and that the company still did nothing to protect those who would be using and therefore put at risk of the development of cancer as a result.

You May Qualify for Lawsuit Funding If You Have Filed a Claim Against Roundup Manufacturers

Though there are some lawsuits that have moved through, with people being awarded thousands and even millions of dollars due to the losses they have experienced, Direct Lending Funding works with those still waiting for their case to be heard. The average amount plaintiffs can receive through lawsuits like this is between $50,000 and %250,000 for the damages they suffered. Direct Legal Funding offers loans of 50% of the client’s net settlement amount. This is based on what attorneys believe that the individual will receive once the lawsuit has moved through.

Direct Legal Funding does not use credit scores or other financial information to make decisions about who to lend to, nor does it pursue financial compensation if the lawsuit does not succeed in obtaining a settlement in favor of the individual.

How to Get Roundup Lawsuit Funding Now

Roundup lawsuit funding may be available to many individuals who are facing financial losses due to

medical conditions, including cancer. Direct Legal Funding requires individuals to apply directly with the company to obtain eligibility, which is dependent on the settlement they are likely to receive based on what their attorney communicates.

Individuals will learn how much they can obtain right away, and funding only takes a short amount of time. Key to this is that even if a case has not been settled yet and remains within the litigation process, the company can still offer a cash advance on the lawsuit. This can be critically important to victims who have the need for immediate compensation to maintain their health and continue funding their care after the development of their cancer or related complications due to Roundup exposure.

Applicants can apply online within a matter of minutes. There are representatives online who can offer the specific steps necessary to determine eligibility for receiving lawsuit funding through Direct Legal Funding.

Talcum Powder Lawsuit Loans and Funding

For decades lawsuits have been filed across the country involving the toxicity of talcum powder in Johnson & Johnson baby powder and the development of certain types of cancers.

The very first talcum powder lawsuit was filed back in 1999 by a woman who was diagnosed with mesothelioma after using Johnson & Johnson talc baby powder for most of her life. At the time, Johnson & Johnson was able to fight to have their test results and other evidence shielded, so nothing ever amounted from this first lawsuit.

However, in the decades since, more and more men, women, and children have come forward to raise concerns and demand Johnson & Johnson be held accountable for the serious medical conditions baby powder users developed. If you have joined a class action talcum powder lawsuit or filed a personal product liability claim against Johnson & Johnson, a settlement may be on the horizon.

While you wait for your case to resolve, Direct Legal Funding may be able to get you the talcum powder lawsuit loan and funding you need to cover your costs now, so contact our loan specialists to see if you qualify for our product liability lawsuit loans today.

More On Talcum Powder Lawsuits 

There have been tens of thousands of lawsuits collectively filed against talcum-based baby powder manufacturing giant Johnson & Johnson. Consumers claim that the talcum (talc) used in Johnson & Johnson’s baby powder is directly responsible for the development of ovarian cancer in users. Many claimants also filed suit after being diagnosed with mesothelioma, which is typically only caused by exposure to asbestos, and claims that the talcum baby powder is contaminated by asbestos.

Furthermore, victims claim that Johnson & Johnson knew their baby powder and other products contained talcum and continued to sell the product despite knowing that it caused certain types of cancers in consumers. It is not only Johnson & Johnson being held accountable for victim’s damages and suffering, either. Some of the brands, retailers, and products named in these lawsuits include:

  • Johnson’s Baby Powder
  • Walgreens
  • Gold Bond Extra Strength Body Powder
  • Gold Bond Body Powder
  • Gold Bond No Mess Powder Spray
  • CVS Pharmacy
  • Vanderbilt Minerals raw industrial talc
  • Shower to Shower (J&J)
  • Target
  • Walmart
  • Whittaker, Clark & Daniels raw cosmetic talc
  • Cashmere Bouquet (Colgate-Palmolive)

Parties Who May Be Entitled to Financial Compensation

Not everyone filing a claim against Johnson & Johnson or other at-fault parties will be successful. In fact, while there may have been over 50,000 talcum baby powder lawsuits filed, many are still in ongoing litigation as Johnson & Johnson has repeatedly attempted to declare bankruptcy and prevent future claims from being filed. To be eligible for financial compensation, specific requirements must be met, including:

  • You must have used products containing talcum powder
  • You must have developed mesothelioma or ovarian cancer

Your talcum powder lawyer will review every detail of your case to determine whether Johnson & Johnson or other parties are responsible for your cancer diagnosis and the residual impact on your life. Getting the products used analyzed and corroborating evidence will be crucial for your claim to be successful. This is one of the many reasons it can take so long for claimants to obtain judgments in their favor.

The Value Of a Talcum Powder Lawsuit

After being diagnosed with ovarian cancer or mesothelioma, your entire world was likely turned upside down. Depending on the extent of your diagnosis, you may need to begin treatment right away. People coping with cancer are often unable to work, exhausted and ill from radiation and chemotherapy, and may never fully recover from their condition, ultimately succumbing to their cancer.

If your personal injury attorney can tie your cancer diagnosis to the use of talcum powder products, you may have the right to be fully compensated for your losses. Johnson & Johnson could be ordered to cover your medical expenses, provide you with financial support when you cannot continue earning a living, and compensate you for your emotional distress, reduced quality of life, and more. There have been many successful talcum powder lawsuits where Johnson & Johnson was also ordered to pay a considerable sum in punitive damages.

To avoid total financial liability, Johnson & Johnson repeatedly attempted to declare bankruptcy, of which all attempts were denied by the court. Currently, Johnson & Johnson continues to negotiate outside of court and be found liable in civil court. The best way to find out how much your case could be worth is to discuss your losses in great detail with your attorney.

Talcum Powder Legal Funding Eligibility Requirements

Direct Legal Funding has helped many talcum powder victims get through these unimaginable times by offering talcum powder lawsuit loans to those dealing with lawsuits and claim negotiations. This is essentially a cash advance on your anticipated settlement. However, not everyone will

qualify.

Creditworthiness

Creditworthiness refers to how likely you are to pay back a line of credit. The greater your credit score, the less of a risk you appear to lenders. When applying for a personal loan, home equity loan, or any other line of credit, the banks and financial institutions will run a credit check to determine your creditworthiness.

If your credit is average or poor, the bank may deny your application altogether. However, more predatory institutions will offer the financial support you need but impose exorbitantly high-interest rates. When this happens, you can quickly get upside down on the loan, and with compound interest, you may not be able to pay it back.

Direct Legal Funding does not run a credit report, and your credit score will not impact your eligibility. We make it possible for people with low or no credit to get the cash they need without being taken advantage of. Our loans are non-recourse, so your credit score is irrelevant to our application review process.

A Source of Income

We understand that your diagnosis may make it impossible for you to work or cover your expenses. That is why you need to take out a talcum powder lawsuit loan. For this reason, we do not consider your income as part of our application review either.

Since our pre-settlement loans are non-recourse, repaying the loans is contingent upon winning your talcum powder lawsuit. They can only be paid back with your settlement funds. This means you will not need to pay back the loans if your attorney loses, making your personal income irrelevant as well.

Age Limits

While we make it possible for most talcum powder victims to access cash advances, not everyone will be eligible. Currently, Direct Legal Funding only offers lawsuit loans to those aged 18 years or older. If you are the parent or legal guardian of a child who qualifies for a talcum powder lawsuit, we may be able to get you the financial help you need on their behalf.

Legal Representation

We can only approve your application for pre-settlement legal funding if you are being represented by an attorney. Every talcum powder lawsuit loan recipient is actively working with a lawyer through negotiations and litigation. If you have not yet started working on your case, please revisit our website once you have a legal representative advocating for your rights.

An Expected Successful Outcome 

Your attorney must be expecting a successful outcome for you to qualify. Attorneys handling talcum powder lawsuits generally work for their clients on contingency, so they will not agree to take on a case unless they expect to win. Similarly, we only get repaid if your attorney wins, so we always confirm the anticipated settlement amount with our applicant’s legal representatives before approval can be issued.

Spend Your Talcum Powder Pre-Settlement Loan However You Need To

One of the top benefits of talcum powder lawsuit loans is the lack of restrictions. We do not limit how you can spend these funds. Some of the most common expenses reported by former talcum powder legal funding recipients include:

  • Utility bills
  • Outstanding medical expenses
  • Credit card debt
  • Rent or mortgage payments
  • Insurance premiums
  • Student loans
  • Private school or college tuition payments
  • Groceries and household items
  • Internet and phone bills
  • Car or lease payments
  • Extracurricular activities

This is your chance to stay afloat while you fight for justice. Direct Legal Funding prioritizes our applicant’s needs and often approves second lawsuit loan applications as well, particularly if your case has been delayed and you are continuing to struggle with finances. Find out how much we could authorize in your case when you contact our loan specialists or apply now.

Contact Our Loan Specialists to Find Out Whether You Qualify for Talcum Powder Legal Funding Today

Talcum-based baby powder and other products containing toxic ingredients can lead to ovarian cancer, mesothelioma, and other serious medical conditions. While you work with your attorney to demand Johnson & Johnson compensate you fairly for your damages and suffering, you should not have to continue to struggle financially. Our talcum powder lawsuit funding through Direct Legal Funding could be the solution you have been looking for.

You should be able to cover your regular living expenses and live life as normally as possible when going through litigation and negotiations. Let us help you get through these difficult times. Apply now, call our office, or fill out our convenient contact form to speak with our loan specialists or find out how much pre-settlement legal funding you could qualify for.

How Does a Pre-Settlement Loan Work?

How Does a Pre-Settlement Loan Work?

Lawsuits can be complicated and stressful, and waiting for the final settlement can take several months or in some cases up to a couple of years. For many plaintiffs in a pending lawsuit, the financial strain of dealing with medical costs, bills that keep piling up, and day-to-day living expenses (while waiting for their case to settle) can be overwhelming. Lawsuit settlement loans can provide much-needed relief to plaintiffs in this situation by giving them a cash advance on their expected settlement amount.

Pre-settlement loans are designed specifically for individuals who are waiting for a lawsuit settlement and need extra money to get them through in the meantime. Lawsuit loans are non-recourse in nature, meaning that they only have to be paid back if the borrower recovers compensation from their lawsuit. If they lose their case, the lender has “no recourse” to collect the loan in any other way.

Pre-settlement lawsuit loans differ from traditional loans in some other important ways as well. For one, there is no credit check or income verification required, because the loan is not based in any way on the borrower’s credit history or their history of paying back prior loans. There is also no collateral required because the “collateral” with this type of loan is the expected settlement amount.

How Does a Settlement Loan Work?

As we talked about earlier, pre-settlement funding is a unique type of financing that is tailored specifically for the needs of plaintiffs who are involved in a legal case. There are minimal qualifications for this type of funding, the repayment terms are simple and straightforward, and the application process is smooth and easy.

Qualifications for Lawsuit Funding

There is not much that is needed to qualify for a pre-settlement loan compared to traditional forms of financing. As we talked about earlier, you must be a plaintiff in a pending lawsuit with an expected settlement – this type of loan is not available to anyone else. Other than that basic requirement, you must also have an attorney representing you in your legal claim.

The reason you need legal representation to be eligible for pre-settlement funding is because of the non-recourse nature of these loans. Since the only way the lender is going to get paid back is if you win your case, they need to know that there is a reasonably good chance that this is going to happen. Toward that end, the lender will need to have a short conversation with your attorney to verify the strength of your claim and other pertinent details.

Lawsuit Advance Repayment Terms

The repayment terms for a pre-settlement loan are pretty simple and straightforward. Payment is due at the time that the settlement amount is received, that’s it.

In some instances, a case might settle within a month or two, while others might take nine months or a year, or longer. In a small percentage of civil claims, the case will end up going to trial, which could stretch the timeframe out to a couple of years or more. Whenever the settlement money comes in, that is when the loan is paid back.

Pre-Settlement Funding Application Process

Obtaining a lawsuit loan is a quick and easy process, and all in all, it can often be completed within just a few days. Here are the basic steps involved:

  1. Submit an Application The main step that a plaintiff has to take to start the pre-settlement funding process is to submit a simple application. On the application, we will ask for some of the details of your case, how much money you want to apply for, and how to get in touch with your attorney.
  2. Wait for Attorney Verification Once the lawsuit loan application is received, the lender will need to verify relevant information with the applicant’s attorney. We all know that attorneys have busy schedules, so there is always a chance that this step could take a few days or so to complete. Once the lender connects with the attorney and everything is verified, a decision will be made on whether to approve the loan.
  3. Receive Your Funds within Hours After the lawsuit funding is approved, the plaintiff can expect to receive their money within 24 hours in most cases.

Who is Eligible for a Pre-Settlement Loan?

Anyone who is involved in a civil litigation case in which they are expecting to recover monetary damages through a settlement or trial verdict may be eligible for pre-settlement funding. This may include those who have pending legal claims involving:

  • Car Accidents
  • Trucking Accidents
  • Motorcycle Accidents
  • Pedestrian Accidents
  • Construction Accidents
  • Railroad Accidents
  • Sexual Abuse
  • Police Brutality
  • Wrongful Imprisonment
  • Nursing Home Abuse
  • Wrongful Death

If you are a plaintiff who is waiting for an expected settlement and you are working with an attorney, then you may be eligible for a lawsuit advance.

Advantages and Disadvantages of Lawsuit Settlement Loans

There are a number of good reasons for plaintiffs to consider applying for a pre-settlement loan, but this form of financing might not be right for everyone.

Advantages

  • No Credit Check: Because there are no credit checks needed to qualify for a lawsuit advance, this type of funding is a good option for plaintiffs with less-than-perfect credit who might not be eligible for a traditional loan.
  • No Income Verification: Many injured plaintiffs are not able to work while they are waiting for their lawsuit to settle. Fortunately, pre-settlement funding eligibility is not dependent in any way on whether or not the borrower has income.
  • No Collateral: Unlike a home equity loan or pawning your valuable family heirlooms, you will not have to put anything that is important to you at risk in order to obtain a lawsuit loan.
  • No Monthly Payments: Repayment of the loan occurs when the lawsuit settlement money is received, which means that borrowers do not have to worry about coming up with monthly payments.
  • No Usage Restrictions: With this type of funding, you can use the money for anything you want without restrictions or limitations.
  • No Recourse for the Lender: As discussed previously, there is only one way that the lender is paid back with a pre-settlement loan, and that is from the proceeds of the expected settlement. If you lose your case, you owe nothing.
  • No Hurry to Settle: Obtaining a lawsuit loan strengthens your case, because it takes away the urgency to settle quickly. By getting the funds you need to get you through this period of financial difficulty, you will no longer be tempted to accept an insultingly low settlement offer from the defendant.

Disadvantages

  • Higher Loan Costs: Because they are non-recourse in nature, settlement loans are considered higher risk than more traditional forms of funding. To account for the increased risk, you can expect the loan to have higher costs associated with it.
  • Might Not Qualify: Another thing about non-recourse loans is that not every civil litigant will qualify. No reputable lender will issue this type of loan if you are not working with an attorney, and even if you do have an attorney, the lender will still need to be reasonably convinced that the case will end favorably for the applicant.

Ready to Apply for a Pre-Settlement Loan? Contact Direct Legal Funding Today!

If you want to know more about how pre-settlement funding works and/or you are ready to start the application process, contact Direct Legal Funding today by calling 866-941-5588 or sending us an online message. We are here to answer any questions you may have and to help you decide if this type of loan is right for you.

How Can I Get a Loan While Waiting for a Settlement?

How Can I Get a Loan While Waiting for a Settlement?

Civil lawsuits can take time to go through the process and finalize a settlement. In the meantime, plaintiffs often find themselves in a precarious financial situation. While facing these financial difficulties, many of them ask, “how can I get a loan while I am waiting for a settlement?”

If you find yourself in this situation, there are several options available to you. At Direct Legal Funding, we highly recommend that you apply risk-free for a lawsuit settlement loan. There are many advantages to obtaining a pre-settlement loan, which we will talk about in greater detail later on. But before we do that, we will go over some of the other pre-settlement funding options that you may have.

Exploring Pre-Settlement Loan Options

When it comes to getting a loan while waiting for a settlement, there are a number of different ways to get the funds that you need. Here are some of the options you may be considering:

Personal Loans

Personal loans are a popular option for those seeking a loan while waiting for a settlement. These loans are typically offered by banks and credit unions and can be unsecured, meaning they do not require collateral or secured, meaning that you would put up collateral for the loan, such as your home or a vehicle.

To be eligible for a personal loan, you will typically need to have a good credit score and a stable source of income. The exact requirements will vary from lender to lender, but you can expect to provide proof of income and a credit check as part of the application process.

Getting a personal loan can be difficult for civil lawsuit plaintiffs because even if they have good credit, they are often out of work as a result of the personal injury they have suffered. This means that they would likely not have the stable source of income required to qualify, even if they have some collateral.

Payday Loans

Payday loans are a type of short-term loan designed to help you cover unexpected expenses until your next paycheck arrives. These loans are typically offered by payday loan companies and are based on your income and employment status rather than your credit score.

There are two big problems with payday loans for those who are waiting for a settlement. First, as discussed in the previous point, personal injury litigants are often out of work and do not have a paycheck to borrow against. Secondly, the repayment period for these loans is typically very short, as in you will probably have to pay it back within a couple of weeks or so.

Pawnshop Loans

Pawnshop loans are a type of secured loan where you use an item of value, such as jewelry or electronics, as collateral for the loan. Pawnshops will give you a loan based on the value of the item you provide as collateral, and you can retrieve your item once you have repaid the loan, plus any interest and fees.

While pawnshop loans do not require you to show income or a credit check, they do require you to put up an item of value to use as collateral. And if you are unable to repay the loan during the allotted time period, you risk losing these items.

Peer to Peer Lending

Peer-to-peer (P2P) lending is an alternative loan option where individuals can lend and borrow money directly, without the need for a traditional financial institution. P2P lending platforms match borrowers with investors who are willing to lend money, and the platform facilitates the loan process, including the repayment of the loan.

Plaintiffs will face many of the same challenges with P2P lending as they do with personal loans from a bank or credit union. These loans require a good credit score and a stable source of income, which puts them out of reach for many litigants who are waiting for a settlement.

Cash Advances on Credit Cards

Credit card issuers like Visa and MasterCard allow users to take cash advances through an ATM or directly from a bank. This option can be a quick and convenient way to access cash, especially if you already have a credit card.

The problem is that credit card cash advances typically come with a relatively short repayment period, and while you are waiting for your settlement, it may be difficult to pay back the advance. This could put you into an even bigger financial hole and severely damage your credit score in the process.

Loans From Family/Friends

Borrowing money from family or friends can be a viable option for those seeking a loan while waiting for a settlement. This option can offer more flexible repayment terms and lower interest rates compared to other types of loans.

The problem for many civil lawsuit plaintiffs is that they don’t know anyone in their family or circle of friends who has the available funds to lend them. And even if there is a suitable lender, you may not want to go this route because of the risk of straining the relationship or even permanently damaging the relationship (with that person) if you are not able to repay the loan.

Lawsuit Settlement Loans

A loan through a pre-settlement funding provider such as Direct Legal Funding is one that is specifically designed to provide financial support to individuals who are waiting for a settlement from a lawsuit. Pre-settlement loans are provided by lawsuit funding companies based on the expected settlement amount.

To be eligible for a lawsuit advance, you must have an active lawsuit and you must be awaiting a pending settlement. You must also be working with an attorney who can verify some necessary details of the case in order to evaluate the likelihood that the plaintiff will recover compensation for his/her losses.

The Benefits of a Lawsuit Loan While Waiting for a Settlement

Pre-settlement loans offer a number of advantages for plaintiffs who are waiting for their cases to settle. These include:

  • Quick Access to Cash: Pre-settlement funding provides quick access to the funds you need, allowing you to more effectively manage your expenses while you are waiting for your settlement.
  • No Credit Check Required: Pre-settlement loans are based on the expected settlement amount from your lawsuit, so a credit check is not required.
  • No Repayment Until Settlement: With a lawsuit advance, you do not have to make any payments until your lawsuit is settled, giving you time to focus on your case and recovery.
  • Flexibility: Lawsuit funding is a flexible option, as you can use the funds for any purpose, including paying bills, medical expenses, or legal fees.
  • No Risk of Losing Collateral: Unlike pawnshop loans or other secured loans, pre-settlement funding does not require collateral, so there is no risk of losing your assets if you are unable to repay the loan.
  • Non-Recourse: Lawsuit settlement loans are non-recourse, meaning that you only have to pay back the funds you borrow if you win your case and recover compensation. If things go bad and you lose your case, you are not required to pay anything back.

Perhaps the best reason to apply for a lawsuit loan is what it can do for your case. If you are facing a cash crunch, then you are going to be far more motivated to settle quickly for an amount that is likely to be significantly less than what your case is worth. But if you take advantage of a lawsuit advance, you have a lot more financial breathing room, which allows you to patiently wait for a settlement that represents full and fair compensation for your losses.

Contact Direct Legal Funding Today to Get Started on Your Lawsuit Settlement Loan

If you need money while waiting for a lawsuit settlement, Direct Legal Funding is here to help. Call us today at 866-941-5588 or send us a message here to speak with one of our specialists and/or to apply for your loan risk-free.

Can You Borrow Money From a Pending Lawsuit?

Can You Borrow Money From a Pending Lawsuit?

When you are dealing with a lawsuit, it can be a stressful and uncertain time. And during this time, plaintiffs are often facing financial difficulties. Legal proceedings can take months or even years to resolve, which causes many plaintiffs to ask if it is possible to borrow money from a pending lawsuit.

The short answer to this question is, “yes”. You can borrow money from a pending lawsuit, but you must be working with an attorney who can verify that you have a strong case. Lawsuit settlement loans are not given out through a bank, however. You need to go through a reputable lawsuit funding company to borrow money for this purpose.

Phases of a Lawsuit

Before we discuss how to borrow money against a pending lawsuit, it is important to take a step back and look at how litigation works. A lawsuit typically goes through several phases, each with its own set of legal procedures and requirements.

The specific phases of a lawsuit can vary depending on the jurisdiction and the type of case, but they generally include the following:

  • Pre-litigation: This is the period before a lawsuit is filed when the parties attempt to resolve the dispute through negotiations or alternative dispute resolution methods. If the parties are unable to reach a resolution, a lawsuit may be filed. This is the phase in which many plaintiffs start searching for ways to borrow money from their pending lawsuits.
  • Filing and Service of Process: This is the stage when the complaint is filed with the court and the defendant is formally notified of the lawsuit. This is also commonly known as the “summons and complaint” stage.
  • Discovery: This is the stage where both parties exchange information and gather evidence to support their respective positions. This may include the exchange of documents, taking depositions, and other methods of obtaining information.
  • Motions: In this stage, either party may file motions to the court, such as a motion to dismiss or a motion for summary judgment. These motions can sometimes determine the outcome of the case before trial.
  • Trial: If the case has not been resolved through settlement or motions, a trial may be held to determine the outcome of the case.
  • Appeal: If either party is dissatisfied with the outcome of the trial, they may file an appeal to a higher court.

It is important to note that the vast majority (more than 90%) of civil lawsuits are settled before they ever go to trial. But many cases are not resolved during the pre-litigation stage either. Sometimes, defendants do not make a reasonable offer until they know that the plaintiff is serious about going to court, and there have been countless instances in which cases have been settled literally “on the steps of the courthouse”.

If you are a plaintiff who is experiencing financial difficulties, you most likely want to get the case settled and get your money ASAP. But you must understand that the initial offer you receive is likely to be far lower than what your case is worth.

Your lawyer may need to file a lawsuit and go through discovery in order to bring the other side to the table, and as we talked about earlier, this could mean waiting for several months before you get your money. This is where pre-settlement funding can provide you with the funds you need to bridge the financial gap.

How Does Lawsuit Funding Work?

As we touched on earlier, plaintiffs who want to borrow money against a pending lawsuit will need to go through a reputable lawsuit funding provider. This type of financing is different from conventional bank loans in some very significant ways.

The most important difference is that lawsuit settlement loans are non-recourse. This means that the plaintiff pays back the loan from the proceeds of the settlement; and if for whatever reason, the case does not go their way and they fail to recover compensation, the plaintiff does not have to pay back the loan at all.

Because pre-settlement loans are nonrecourse, there is no collateral required, and there are no credit checks needed in order for plaintiffs to qualify. All that is required is that you have a pending lawsuit and that you are working with an attorney. There is also no need for the plaintiff to make monthly payments because again, the loan is only paid back from the proceeds of the lawsuit.

Here are the main steps to securing a lawsuit advance:

  1. Submit an Application Submit a pre-settlement loan application with information about your lawsuit, how much you want to apply for, and how to get in touch with your attorney.
  2. We Evaluate Your Application Our underwriters will evaluate your pre-settlement funding application and the potential for recovering compensation from your lawsuit. This will include a discussion of your claim with your attorney.
  3. Approval and Funding If our underwriters determine that there is a strong likelihood of recovering compensation, you will be approved, and your pre-settlement loan will be funded. The amount that you can borrow against your pending lawsuit will depend on the settlement you are expecting to receive and other details of your case. Once approved, funds will be sent to your bank account within hours.

Need to Borrow Money from a Pending Lawsuit? Contact Direct Legal Funding Today!

Whether you are waiting for funds from a car accident, truck accident, motorcycle accident, wrongful death claim, or virtually any other type of civil lawsuit, Direct Legal Funding is here to help! We know that many plaintiffs face the dilemma of needing their money right away but not wanting to accept an insultingly low settlement offer from the defendant.

With a lawsuit cash advance from Direct Legal Funding, you can get the money you need to tie you over until your case is settled. This allows your attorney to pursue your claim from a position of strength knowing that they can take the case all the way to trial if necessary in order to recover full and fair compensation for your losses.

Call us today at 866-941-5588 or send us a message here to get started.   

Are Lawsuit Loans Worth It?

Are Lawsuit Loans Worth It?

Lawsuit loans, also known as pre-settlement loans, are a type of financing option available to individuals who are involved in a legal case and are in need of immediate funds. These types of loans provide a way for plaintiffs to receive a portion of their expected settlement before the case is resolved.

Lawsuit loans are worth it for a large number of plaintiffs who are involved with a civil claim. Pre-settlement funding can be a lifesaver for those facing financial difficulties while they are waiting for their settlement to come in. It is important to understand the terms and conditions associated with a lawsuit advance, however, in order to determine whether or not this type of financing is right for you.

At Direct Legal Funding, we have helped countless plaintiffs to get the funds they need to tie them over while their claim is pending. Call us at 866-941-5588 or send us an online message to discuss your case and whether or not a lawsuit loan is worth it for you to apply for.

What are Lawsuit Loans?

Lawsuit loans are advances on the expected settlement from a civil lawsuit, and they are typically provided by specialized lenders who understand the legal system and have experience in assessing the likelihood of a successful outcome. The lender reviews the details of the case and makes a determination on the amount of money they are willing to loan. The loan amount is usually a percentage of the expected settlement and is determined based on the strength of the case and the likelihood of a successful outcome.

To be eligible for a lawsuit loan, an individual must be involved in a legal case (with an expected settlement) and have an attorney representing them. The amount of money offered through a pre-settlement loan can vary depending on the strength of the case, the amount of the expected settlement, and the lender’s risk tolerance.

Pros of Lawsuit Loans

Pre-settlement loans provide much-needed financial assistance for plaintiffs in civil litigation cases who are in a cash crunch while waiting for their settlement money to come in. Here are some of the biggest benefits borrowers receive when they obtain lawsuit funding:

Immediate Access to Funds

The process for obtaining a lawsuit advance is quick and easy. All that is required is for the plaintiff to fill out a simple application with some details of their pending case and the contact information for their attorney. Once the lender speaks with the attorney, verifies the relevant information, and approves the loan, the pre-settlement funding can be issued in a matter of hours rather than days or weeks which is typical with more traditional forms of financing.

No Collateral or Credit Check

With a pre-settlement loan, the borrower does not have to put up any collateral. Approval for the loan is based on the likelihood of recovering compensation through a lawsuit settlement, so there is no need to risk your home, vehicle, jewelry, or anything else of value. There are also no credit checks with this type of loan because it is not based in any way on creditworthiness.

No Repayment If the Case is Lost

One of the biggest reasons why lawsuit loans are worth it for many civil litigants is the fact that they are non-recourse in nature. This means that if something goes wrong and the plaintiff/borrower fails to recover a settlement, they are not obligated to pay back the loan.

No Monthly Payments

Because you are waiting to pay the loan back until your settlement funds come in, a pre-settlement loan does not require you to come up with monthly payments. Once you receive your funding, you can relax and focus on recovering from your injuries and other losses while your attorney works on your claim.

No Usage Restrictions

A lawsuit advance does not come with any strings attached with regard to how the money can be used. You can use the funds to pay your medical bills, catch up on your rent or mortgage, pay your child’s college tuition, or take a vacation. It’s your money, and it doesn’t matter to the lender what you do with it.

Potential to Strengthen the Legal Claim

Perhaps the greatest benefit for plaintiffs that makes lawsuit loans worthwhile is how pre-settlement funding changes the dynamics of the case. Once you have enough money to get you through until your case settles, you no longer need to be in a hurry to get it done with.

This takes away a major piece of leverage that defendants such as insurance companies like to wield. They know that injury victims are often hurting for money, and they will try to use that to their advantage by making a lowball settlement offer. But with the extra money provided by a lawsuit advance, you can afford to let your lawyer build the strongest possible case to pursue maximum damages for your losses.

Cons of Lawsuit Loans

While lawsuit loans can provide immediate access to funds for individuals facing financial difficulties, they also come with some drawbacks:

  • Higher Interest Rates and Fees: Pre-settlement loans typically have higher interest rates and other fees when compared with traditional funding options. This is to account for the additional risk involved with issuing a non-recourse loan. Remember, you are only required to pay back the loan if you recover a settlement, so if you lose your case, the lender is at risk of not getting any of their money back.
  • Unregulated Industry: Another drawback when considering lawsuit loans is that the industry is largely unregulated. This lack of regulation can make it difficult for plaintiffs to know whom they are dealing with. Because of this, it’s essential for plaintiffs to carefully research and choose a reputable lawsuit funding provider with a proven track record of providing fair and transparent pre-settlement loans.

Is It Worth It to Get a Lawsuit Loan?

Are lawsuit loans worth it? As with most things in life, the answer to that question depends largely on your specific circumstances. Pre-settlement funding can definitely be worth it for many plaintiffs, especially when they are facing financial difficulties and their other borrowing options are fairly limited. But for some, it is not the right option.

At Direct Legal Funding, we are proud of the service we provide for plaintiffs who are involved in a legal case. When you work with us, everything is open and transparent, and you do not have to worry about hidden surprises later on.

We are upfront and honest with you about how lawsuit loans work and the pros and cons of this type of funding, so you can make the most informed decision about whether or not a lawsuit advance will be worth it for you.

Call us today at 866-941-5588 or send us a message here to get all of your questions answered and start your application.

The Truth About Lawsuit Settlement Loans

Lawsuit settlement loans, also known as pre-settlement loans, lawsuit loans or lawsuit funding, have become a popular option for plaintiffs seeking financial support while involved in lengthy lawsuits. These loans are often used to ease the financial burden of waiting for a settlement by providing plaintiffs with quick access to cash without any upfront costs or collateral.

There is controversy surrounding pre-settlement loans, however, with critics arguing that these loans cost too much, that their interest rates can take advantage of the plaintiffs, and potentially unethical practices by funding companies.

Are the critics correct?

We will look at both sides of this argument and give you the truth about lawsuit funding and the parties involved. So, let’s look under the hood at lawsuit loans by discussing the process, the parties involved and offer advice on what to look for when making a decision.

An Oasis in The Desert

Lawsuit settlement loans offer several benefits for plaintiffs. The main benefit, is providing them with the financial support they need to endure long legal battles without the overwhelming debt, comes with waiting for a settlement. Much like a lifeline, a lawsuit loan can keep you financially afloat while your attorney negotiates with the big insurance companies on your behalf. If you have nowhere else to turn for the financial help you need during this difficult time, then a lawsuit cash advance can truly be akin to “an oasis in the desert.”

A Necessary Evil?

This phrase gets thrown around a lot these days, as people try and justify things they do not agree with. “I don’t like it, but it’s a necessary evil” some might say. Well, this has been thrown around about lawsuit funding companies for years. But is this phrase really true, when it comes to pre-settlement loans?

We would argue that this phrase is the furthest thing from the truth. The fact is that there is nothing inherently evil about providing financial assistance to those who are most in need of it. But the people who say this are really saying, a lawsuit cash advance is just too expensive – or at least more expensive than it should be and they take advantage of plaintiffs.

But let’s look at this question in comparison to another practice that is common with personal injury lawsuits.

Would it be considered a “necessary evil” to hire an attorney that will represent you in your injury case, only to take 30% to 40% of the compensation you are awarded for your injury and other losses?

How about in the world of credit cards? Most Americans have at least one or two of them.

Is it a “necessary evil” that a credit card company will charge you two or three times the interest rate of someone else because they have better credit than you?

Is it unfair or evil, that your personal bank will not give you a loan to support your family, knowing you will “probably” receive a settlement and can pay is it back, with interest?

The answer to all of these is, no. It is just the way things are done.

Let’s ask the question another way. Would it be considered a “necessary evil” for a company to provide you with money to pay your bills without the need for a credit check or collateral, and you only have to pay the loan back if you win your case? Yes, there will be interest on the loan, but doesn’t the bank do the same thing, if they would actually do it, I mean?

When you put it that way, it is hard to argue that there is anything bad about a lawsuit loan.

A bank is not going to give out an unsecured personal loan without a credit check and simply on the merits of a pending lawsuit. And they certainly wouldn’t give you a loan like that at their best interest rate. Furthermore, if a bank ever did give out a loan like this, they would definitely want you to pay it back regardless of what happens with your lawsuit.

What about credit card providers? If you got hurt and need money because you are out of work, will a credit card issuer raise your credit limit to give you the money you need to get by? You know the answer to that question is almost certainly going to be no, especially if you have less-than-perfect credit. And if they do say yes, you can be sure that they will not give you a break on the interest rate.

Can you turn to family to loan you money? How about your attorney? He or she knows better than anyone the value of your case, so why can’t they give you a loan and take the repayment out of the settlement?

For most people, these options are nonexistent. And that is why lawsuit loan companies exist today. Born out of necessity, when plaintiffs had no one else to turn to, lawsuit loan or pre-settlement loan companies, at great risk, came to the rescue.

Advantages of Pre-Settlement Loans

Access to Funds

One of the main benefits of loans for lawsuit settlement is quick and easy access to funds that they can use to pay bills immediately. Unlike traditional bank loans that can take several days or even several weeks to approve, a lawsuit cash advance can be approved, and funds can be in your bank account within a matter of hours.

Flexibility

Another advantage of pre-settlement loans is the flexibility they offer. Borrowers can use the funds for anything, without restrictions.

Non-Recourse Funding

As we touched on earlier, pre-settlement lawsuit loans are “non-recourse”. This means the loan is tied to the outcome of the case. If the plaintiff loses the case, he/she is not responsible for

paying back the loan. If s/he wins the case, the repayment comes from the settlement under the predetermined terms and conditions.

This is a significant benefit as it reduces the risk for borrowers and protects them from incurring more debt in case of an unfavorable outcome. With non-recourse funding, plaintiffs can pursue their case with peace of mind, knowing that they will not be held personally responsible for the loan in case they do not win.

No Credit Check

Unlike traditional loans, pre-settlement funding does not require a credit check. This means that plaintiffs with poor credit scores can still qualify for a loan. Lawsuit funding companies base their decision on the merits of the case, rather than the plaintiff’s credit history. This is a significant advantage for individuals who may have credit challenges.

No Collateral Required

Lawsuit settlement loans are unsecured loans, meaning they do not require collateral. This is the direct opposite of most traditional loans that require borrowers to put up collateral, such as a home or car, as a form of security.

Strengthens the Legal Claim

Lawsuit settlement loans can provide plaintiffs with additional leverage during negotiations and help to strengthen their legal claim. Personal injury cases are often drawn out for months or even years. Insurance companies know the longer they can delay a payout, the more likely a plaintiff is to give up because of financial pressures and opt to settle the case. This financial pressure makes it more likely that a plaintiff will be tempted to accept a settlement offer – even if it is far lower than what their claim is actually worth.

By taking out a pre-settlement loan, the plaintiff has the financial relief they need to wait for a better settlement offer or take the case to trial if necessary. This puts their attorney in a better negotiating position and makes it far more likely that they will be able to secure the settlement that the plaintiff deserves.

The “Perceived” Downfalls of Lawsuit Loans

While pre-settlement loans offer several benefits, they also have some potential drawbacks, depending on the individual circumstances of the plaintiff. The following are some of the possible disadvantages of lawsuit settlement loans:

Higher Costs

One significant misconception of pre-settlement loans is that they can be considered expensive. In reality, they are not expensive at all.

These are non-recourse loans, which means the lender cannot collect anything if the plaintiff does not win his or her case, they are considered high-risk. As a result, the interest rates and

fees associated with lawsuit loans can be higher than traditional loans but lower than credit card companies in a lot of cases.

The value of the loan amount is also not as easy to assess. For example, if your case is worth $50,000, according to your attorney, then you may be able to get a $10,000 loan. But what if your attorney is wrong or maybe he was just hopeful?

What if your case is really only worth $25,000? Your attorney is still going to get his 30% to 40%, so you are at around $15,000. And what about the expenses of the case? That may be another $5,000.

That leaves you with only $10,000, which will not even cover the interest on the loan. So, as you can see, lawsuit loan companies carry ALL of the risk when it comes to these transactions.

In fact, because of the enormous risk with these cases, there have been several lawsuit funding companies that have gone out of business in recent years.

Ethical Concerns?

A lot of law firms will tell their clients to stay away from lawsuit loan companies out of ethical concerns. But who are they protecting?

Are banks ethical? Are law firms ethical when they take up to a 40% take of your settlement? As we mentioned, they aren’t going to give you money, banks aren’t going to loan you money, and friends and family don’t want to see you coming, so where are you going to turn when the medical bills pile up and the creditors keep calling?

All your attorney will tell you is “just hold on a little longer, a settlement is coming”. But in the meantime, how are you supposed to put food on the table?

Some lawsuit funding companies have been accused of exploiting vulnerable plaintiffs and charging excessive interest rates and fees. This may have happened; just like in any industry, there are always a few bad apples.

There are plenty of reputable lenders out there as well, and it is important for borrowers to do their due diligence. Look at reviews and talk to different lenders to find the right one for you.

Is a Pre-Settlement Lawsuit Loan Right for You?

While pre-settlement loans can be a helpful financial tool for plaintiffs, they also come with some potential concerns, the most important being the fees associated with the loan.

Maybe you have family members or friends who are willing to lend you the money you need at zero interest or with minimal interest. If that is an option for you, then take the money and don’t bother applying for a loan.

Maybe you own a home, or you have a sizable retirement account that you can borrow against. If these resources are available to you at a lower cost than what is associated with a pre-settlement loan, then you might want to go that route.

You should keep in mind, however, that a secured loan puts your collateral at risk if you are unable to make the payments while you are out of work because of your injury. There are no monthly payments with a lawsuit loan, and as we have talked about, the funding is secured by the eventual settlement or verdict from your lawsuit. So if, for any reason, things go south and you lose your case, you won’t have to pay anything back.

The bottom line is that everyone’s circumstances are unique, and you need to weigh all of the specific factors that apply to your situation before deciding if a pre-settlement loan is right for you. Consider all of your available funding options, and if you have any questions about lawsuit loans, we are here to help answer them. Feel free to call us anytime at 866-941-5588 to discuss your situation and/or to start the application process.