How Does Pre-Settlement Funding Work?
Pre-settlement funding gives a plaintiff a cash advance against an expected settlement or judgment while their lawsuit is still pending. A funding company reviews the strength of your case, advances a portion of its likely value, and is repaid from the eventual settlement — but only if you win. If your case does not succeed, […]
How Much Does Pre-Settlement Funding Cost?
Pre-settlement funding can cost more than a traditional loan because the funder is only repaid if you win your case, so the lender is carrying a much greater risk than traditional loans. Costs are charged as a periodic rate — often a few percent per month — that accrues over the life of your case. […]
What Should I Do If My Pre-Settlement Funding Application Is Denied?
If your pre-settlement funding application is denied, it is essential to determine why as soon as possible. Your attorney can help clarify the reason, whether it’s due to case-specific issues such as missing documentation or contested liability, or because your state restricts or prohibits this type of funding. With their help, you may be able to resolve the issue, reapply, or seek funding from another provider. In some cases, submitting additional evidence or clarifying details may […]
Do I Have to Repay Pre-Settlement Funding If My Case Takes Years to Settle?
Do I Have to Repay Pre-Settlement Funding If My Case Takes Years to Settle? Yes, if your case is successful, you are required to repay pre-settlement funding, regardless of how long the case takes. Pre-settlement funding is typically non-recourse, meaning repayment is only required if you win or settle your case. While your lawyer can estimate how long your case might take […]
Are There Any Legal Restrictions on Litigation Funding?
Yes, there can be. While litigation or pre-settlement funding is widely available and commonly used, some states have regulations that may affect how it can be used, disclosed, or structured. These laws are evolving and can vary depending on where your case is filed. That’s why it’s important to understand the legal landscape and work closely with your attorney before entering […]
Are There Caps on How Much Pre-Settlement Funding I Can Get?
There are generally no formal caps on how much pre-settlement funding you can receive. However, the amount is typically limited by your case’s estimated value, the funding company’s internal policies, and any applicable state regulations. Most funders advance between 10% and 20% of your expected settlement or jury award. Pre-settlement funding, also known as litigation funding, is a non-recourse cash advance. That […]
How to Choose a Reputable Litigation Funding Company
Pre-settlement funding can help pay your living expenses while you wait for your case to resolve. However, it’s crucial to choose a litigation funding company with proven experience and a solid performance history. Start by confirming that your type of case is eligible, not only with the lender but also under your state’s laws. Most pre-settlement funding is available for personal injury lawsuits, but some lenders also support […]
How Does the Interest Rate Work on Lawsuit Loans?
Each funding company sets its own interest rates and fee structures. These rates are typically based on factors such as the strength of your case, the estimated value of your settlement, and how long it’s expected to take. Rates are typically calculated using simple (non-compounding) interest, though some funding companies may apply compounding methods, which can increase the […]
How to Prepare for a Lawsuit Funding Application
Applying for legal funding does not require the same documentation as applying for a traditional loan. Instead, it functions more like a cash advance, with repayment due only if and when you win your case. While often called a “lawsuit loan,” that term is misleading. Because the funding is non-recourse, you are not obligated to repay it if your case does not result in a […]
How Pre-Settlement Funding Can Help Victims of Uninsured or Underinsured Drivers
Becoming a victim of a serious car accident caused by a negligent driver is hard enough. Discovering they are uninsured or underinsured only compounds the financial consequences you face from medical bills and the inability to work. Depending upon the circumstances, pre-settlement funding could be a financial safety net. Pre-settlement funding is not a loan, […]