What Happens In Underwriting for
a Lawsuit Cash Advance?

Mar 17, 2010

When you enter into the world of lawyers, many things can be confusing. There are a number of different words and phrases that you may hear which you may not have heard before, and there are also a number of different things that can occur inside of the courtroom, and outside of the courtroom, which may also be confusing. One thing that is often strange to people who are not in the legal profession are lawsuit cash advances. People wonder how a company who pays for lawsuit cash advances picks who they give money to, and how the entire process works.


When it comes to any advance, it has to go through an underwriter. The underwriter is usually an attorney or an insurance adjustor who works directly for the investor. They are someone whose responsibility it is to look over all of the documents that he has been presented with in order to make the decision about whether or not the advance is going to be a good bet. If you purchase a house, for instance, your mortgage will go through an underwriter.
In the case of a lawsuit cash advance, an underwriter is someone who works for the cash advance company in order to make the decision about whether or not a case that they have been presented with is going to be a viable one. The underwriter is the one who ultimately decides whether or not you can get the cash advance that you have been looking for.

What They Look For

When an underwriter looks through the documentation that has been given to him by the lawyer, he will make a decision based on your liability. If the underwriter finds that there is clear liability for your case, there is a very good chance that you will get the cash advance that you are looking for. Another thing that an underwriter looks for is the length of time the case will take. If it is a case that will take a very long time to settle, the underwriter may decide that the outcome is too far away to extend the advance to the client. If, however, the settlement is likely to come quickly, there is a much better chance that the underwriter will say that the client is a good person to give a cash advance to.
There are a number of things that an underwriter looks at when they’re trying to decide if they are going to advise the company to extend the cash advance to the client, including any settlement offers that you have already been made and if you have already received funding or not. While the underwriter is working directly for their company, and has the company’s best interests in mind, they are also only looking at the facts of the cases that they are presented with.