How a lawsuit loan works is that the applicants apply for it and if their applications are approved, then, they are sent the money the same day via overnight mail express. This is after they sign a contract with the lending company to pay back the amount of the loan along with compounded interest when they get their compensation from the defendants in the case.
There is no credit check which is required by the lending companies from the applicants for lawsuit loans. This is because the companies consider it to be both irrelevant as well as a waste of time as it does not help in the process of application for a lawsuit loan, instead it hurts it! There are many people who may get rejected because of a bad credit history and the company concerned may therefore lose potential customers with whom it could have been able to earn revenues!
If any of these individuals lose their lawsuit and are therefore unable to secure the recompense which they thought was their right, then they would be freed from all contractual obligations with the lending company. This means that they would no longer be required to pay any amount of money back to the company against the loan amount which they borrowed from it; the amount due from them would automatically become nil according to the terms and conditions of the lawsuit loan contract.