Funding companies determine eligibility for pre-settlement lawsuit funding based on the strength of your lawsuit and the likelihood of a successful settlement or verdict. Key factors include the type of case (e.g., personal injury, workers’ comp), the severity of injuries or damages, and the defendant’s ability to pay. Unlike traditional loans, credit score and employment history are not considered—approval is based solely on the merits of your legal claim. To qualify, you must have legal representation, and your attorney must cooperate with the funding company to assess the case’s potential value.
At Mustang Funding, we offer capital solutions to plaintiffs in a wide range of civil lawsuits and personal injury cases, including car accidents, wrongful death, product liability, medical malpractice, pharmaceutical litigation, unlawful termination, workplace discrimination, the Jones Act (for injured maritime workers), and more. Pre-settlement funding can be a financial lifeline for plaintiffs waiting for their cases to be resolved. It is like a cash advance on an anticipated settlement or verdict. The future settlement serves as collateral.
There are many reasons your pre-settlement loan may be denied, including weak evidence in your lawsuit, liability issues, a low expected settlement amount, or your attorney’s reluctance to cooperate.
The good news is that one denial is not the end of the story. Even if you have previously been unable to get a pre-settlement loan (more accurately, pre-settlement funding, since it is not actually a loan), your eligibility may improve as circumstances evolve.
Consider these three common reasons pre-settlement funding gets denied—and the circumstances under which that initial decision might be reversed.
Yes, pre-settlement funding qualifications vary by state. Since there are no federal laws regulating pre-settlement funding, each state sets its own rules regarding eligibility, required documentation, funding limits, and borrower protections. Some states strictly regulate legal funding, while others allow for more flexibility.
Yes, you can still qualify for pre-settlement lawsuit funding even if you have bad credit. Pre-settlement funding is not based on your credit history or credit score. Instead, approval is primarily based on the strength and potential value of your legal claim. Funding companies focus on the facts of your case rather than your financial background. This makes legal funding an accessible option for plaintiffs struggling financially due to injury-related expenses and lost wages.
We have good news for plaintiffs seeking legal funding for a personal injury case or other claim. There are no upfront fees at all when you work with Mustang Funding. We will only collect our fee if and when your case results in a successful settlement or verdict.
Even when liability is clear in a lawsuit, it can still take a long time to receive your settlement check. Insurance companies know that plaintiffs experiencing financial instability may agree to lower settlements due to the hardships caused by their damages and losses. This is where pre-settlement funding from Mustang Funding can make all the difference in your quality of life while you wait for your personal injury lawsuit to settle.
Pre-settlement lawsuit funding, more akin to a cash advance than a traditional loan, is designed to offer quick financial support during the often drawn-out and stressful process of a lawsuit. So, what exactly can you use your settlement funding for? This funding is tailored to meet your unique needs, allowing you to address a wide variety of expenses while you await the outcome of your case.
Yes, you can use your pre-settlement funding to pay for medical bills. The steep cost of healthcare is one of the key reasons plaintiffs choose this option. For example, even if you are insured, you may be faced with deductibles or co-payments, and these out-of-pocket costs can be high, and some treatments or specialists may not be fully covered.
Yes, you can obtain pre-settlement funding without your attorney’s consent, but it is generally beneficial to all involved parties to be on the same page as your attorney, especially since they are fighting for you to achieve the best outcome possible. However, in the case that you need move forward against your attorney’s opinion, here is some advice we can offer you.
No, attorneys cannot provide pre-settlement funding for your pending lawsuit. They are required to act in their client’s best interests without being influenced by financial considerations. Providing funding directly could create a financial stake for the attorney in the outcome of the case, potentially compromising their objectivity. However, pre-settlement lawsuit funding from Mustang Funding helps plaintiffs level the economic playing field against deep-pocketed defendants and insurance companies who often prolong the legal process.
If your lawyer advises against pre-settlement funding, it’s essential to understand their concerns. This is your case and your decision, but open communication with your lawyer may help clear up some misconceptions. If, given your financial stressors, you still want to pursue pre-settlement funding, you could research reputable companies that offer transparent terms and share that information with them to see if it addresses their concerns.
If you are considering pre-settlement lawsuit funding, you might be concerned about how it will impact the fees you owe your attorney. Understanding this is key to managing your finances effectively while your case is pending.
Pre-settlement funding can offer essential support during this period, but it is important to know how it interacts with your attorney’s fees so you can make informed decisions about your financial strategy. Let’s delve into how pre-settlement funding works and what it means for the amount you will ultimately pay your lawyer.
The short answer is yes, a personal injury settlement may affect your Medicaid benefits, as Medicaid is a needs-based program with strict income and asset limits. However, careful structuring and management of your settlement may help you protect your eligibility.
If you are already receiving pre-settlement lawsuit funding and find yourself needing more to cover ongoing expenses, the answer is yes—you can secure additional funding. We understand that as your case drags on, the financial pressures can build, whether it is due to medical bills, daily living expenses, or other unexpected costs. Sometimes, the initial funding you received might not be enough to get you through.
At Mustang Funding, you can secure more than one pre-settlement funding arrangement for the same lawsuit. When you apply for additional funding, we assess the remaining potential settlement value, factoring in the amount you have already borrowed. You can also receive pre-settlement funding if you are involved in multiple lawsuits. Each case is evaluated separately based on its own merits, and the funding will be based on the projected settlement value of each lawsuit. This ensures you do not borrow more than your settlement can comfortably cover.
Pre-settlement lawsuit funding is available for clients involved in a wide range of lawsuits. It makes it possible to obtain funds before your case is resolved in as quickly as a few days—without a complicated application process. At Mustang Funding, there is no credit check for this type of legal financing. Instead, we contact your attorney to learn more about your case so we can prepare a proposal based on the likelihood of a good outcome.
Yes, it is possible to borrow money from a pending lawsuit through a process known as pre-settlement lawsuit funding. The amount of the loan, interest rate, and other details will depend upon the strength of your case, the specific laws in your state, and other factors.
While you cannot take out a traditional loan based on your car accident settlement, pre-settlement lawsuit funding provides a viable alternative. This is essentially an advance on your potential settlement, allowing you to access the cash you need during your case. With pre-settlement funding, you are not forced to settle early to meet urgent financial obligations, and you do not have to wait until the end of your case to obtain financial relief.
You can get pre-settlement lawsuit funding for a wrongful death case. The sudden death of a loved one due to another party’s negligence often places an immense financial burden on families. They might feel pressured to settle their cases for far less than they are worth. Mustang Funding provides a solution to this common conundrum by offering upfront cash to litigants waiting to resolve their cases. Located in Wayzata, MN, we offer ethical institutional litigation funding to support justice. Contact us today to learn more.
At Mustang Funding, pre-settlement funding is a non-recourse financial arrangement. This means that the funds are advanced to the plaintiff (the person filing the lawsuit) with the understanding that repayment is contingent upon a successful settlement or court verdict. If the lawsuit does not result in a financial award, the plaintiff is not required to repay the advanced funds, so you are taking on much less risk than you would with a traditional loan.
If you lose your case after receiving pre-settlement lawsuit funding, you typically do not have to repay the funds, as pre-settlement funding is non-recourse. This means the funding company absorbs the risk and only recovers its investment if you win or receive a settlement. Unlike traditional loans, pre-settlement advances are not dependent on credit scores or employment status, and repayment is solely contingent on the success of your case. If the lawsuit does not result in compensation, you owe nothing, ensuring financial protection without the burden of debt.
If your case takes longer than expected after receiving pre-settlement funding, remember your repayment is tied solely to the outcome, not a set timeline. Because this is a non-recourse advance, you owe nothing until (and unless) your case successfully settles or you win in court. While interest will continue to accrue during the extended period, you’re never required to make monthly payments, and you won’t owe anything if you lose your case.
After receiving pre-settlement funding, you can use the money to pay for food, your children’s tuition, mortgage payments, medical expenses, and other daily expenses while you wait for your lawsuit to move through the legal system. At the conclusion of your case, your funding company will collect repayment and associated fees from your successful verdict or settlement. If your case doesn’t end in your favor, you owe nothing. The lender takes all the risk.
After reaching a settlement, you might wonder how the funds will get to you. Once a settlement is finalized, the funds are disbursed through a series of steps to ensure that all financial obligations are met, and all parties are compensated appropriately. Understanding this disbursement process is important, as it outlines the phases involved in transferring funds from the settlement agreement into your hands.
Pre-settlement funding is not a loan. At Mustang Funding, we occasionally use the term “lawsuit loan” since it’s a common search phrase, but what we offer is technically different. Pre-settlement funding is a non-recourse cash advance provided in exchange for a portion of your potential future settlement. Unlike a traditional loan, you are not required to repay the advance if you lose your case. In essence, we assume the risk. You receive funds upfront, and if your case is successful, we collect an agreed-upon share of your settlement.
Pre-settlement lawsuit funding provides financial support to plaintiffs while their lawsuit is still ongoing, helping cover living expenses, medical bills, or legal costs before a settlement or verdict is reached. In contrast, post-settlement funding occurs after a case has been resolved but before the plaintiff receives their payout, offering immediate access to a portion of the awarded compensation. Both are non-recourse advances, meaning repayment is only required if the plaintiff wins or receives a settlement.
Litigation funding is not a loan; it is more accurately described as a cash advance. Legal disputes are often lengthy. Many victims whose injuries resulted from another party’s negligence cannot focus on their recovery because they need to pay their bills. Unlike traditional loans, litigation funding provides plaintiffs with financial assistance during the course of their lawsuit without requiring monthly repayments or the risk of owing money if their case is lost. That is where pre-settlement funding can make all the difference in your quality of life while you wait for your personal injury lawsuit to settle.
Plaintiffs benefit from pre-settlement lawsuit funding by gaining immediate financial relief while their lawsuit is still pending, without waiting months or years for a settlement. If you’re recovering from serious injuries, you may not be able to work, and that loss of income often creates financial instability. Beyond the immediate physical pain and emotional distress, the inability to earn a paycheck can quickly lead to mounting bills, overdue rent or mortgage payments, and even the risk of losing your home or vehicle.
Litigation funding, or pre-settlement funding, is not a traditional loan. It is a non-recourse cash advance provided in exchange for a portion of your potential future settlement. Good credit is not a requirement and will not impact your credit score. To learn more, contact Mustang Funding today. Located in Wayzata, MN, we offer ethical institutional litigation funding to support justice. With personnel having 100+ years of combined investment experience and 50+ years in litigation finance, we’ve empowered 5,000+ civil litigants and 800 law firms.
You can get an advance on your settlement check through pre-settlement lawsuit funding. Depending on your individual circumstances and the laws in your state, you (the plaintiff) may be eligible for pre-settlement funding based on the expected settlement amount. For instance, if your lawyer estimates a potential settlement of $200,000 for your case, you could qualify for pre-settlement funding that aligns with this estimate.
You have been waiting patiently for your lawsuit settlement check. Unfortunately, even after your lawyer receives the check, they can hold onto the funds for quite some time. How long your lawyer can hold your settlement check depends on the specific circumstances of your lawsuit. In the meantime, you may be facing financial instability and need cash for everyday expenses and to pay your bills.
Cashing a settlement check after winning a personal injury case may require special arrangements due to the size of the amount. If you have an account with a bank or credit union, you can cash or deposit it. Be aware that some banks may place a hold on large amounts until it clears. You can also cash the check at the bank that issued it (listed on the check). Bring a valid photo ID, and note that non-account holders may be charged a fee.
The exact time it takes for a settlement check to clear can be unpredictable and can be influenced by different factors, including:
If you are a plaintiff in a personal injury claim or other legal case, a cash advance on your lawsuit can give you money in a matter of days, as opposed to waiting months (or even years) for your case to resolve. If your case is promising, and bills are piling up, this might be the right decision for you.
Before choosing a pre-settlement funding lender, verify that they are licensed to operate in your state and have a proven track record in the industry—experience matters. A reliable lender will also be transparent about all fees and charges, ensuring no hidden costs. If you have questions about pre-settlement funding, make sure they are answered to your satisfaction by the lender before signing the funding agreement.
To learn more about attorney and law firm funding and its benefits for your practice, contact Mustang Funding today. Our team of experts has a combined 100+ years of experience in the finance industry and 50+ years in litigation finance.
Mustang Litigation Funding works with capital partners and affiliated entities to provide a non-recourse cash advance to an individual. All non-recourse cash advances are subject to review and approval. Not all cases or requests will qualify. Certain states regulate non-recourse cash advances and may disqualify an applicant from receiving a non-recourse cash advance from Mustang Litigation Funding or its partners/affiliates.
This web site is for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or investment advice. You should consult your own tax, legal, investment advisors before engaging in any transaction.
