When another party causes you to suffer a serious personal injury, you might eventually receive compensation through the defendant’s insurance company or after a courtroom verdict. Meanwhile, you may not be able to work and need money to pay your basic living expenses. The need for funds could cause you to consider settling for less money than you deserve for your injuries. That is where pre-settlement funding in Delaware comes in.
Is Pre-Settlement Funding Considered a Loan?
No, pre-settlement funding is not a loan. While we occasionally use the term “lawsuit loan”—since it’s a common search phrase—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.
What Are the Benefits of Pre-Settlement Funding in Delaware?
There are several benefits to pre-settlement funding for individuals awaiting the outcome of legal proceedings:
- Does not affect your credit in any way: Good credit is not a requirement for pre-settlement funding, and applying for a lawsuit advance will not impact your credit.
- Does not require monthly payments: Unlike credit cards and personal loans, litigation advances do not have monthly payments. Instead, these funds are only repaid once your case is completed.
- Typically has no restrictions on how you use it: From coverage of legal expenses to food, utilities, and other day-to-day bills, use pre-settlement funding as you see fit.
- Does not require monthly payments: Unlike credit cards and personal loans, litigation advances do not have monthly payments. Instead, these funds are only repaid once your case is completed.
- If your case settles for less than expected, you are not responsible for covering that gap. We consider this risk when reviewing your application and offering you a lawsuit advance.
Finally, complex, high-stakes legal cases can take a long time to resolve. If you need additional funds, you can apply for another round of pre-settlement legal financing. We review applications on a case-by-case basis.
How Pre-Settlement Funding in Delaware Works
Most plaintiffs can expect to qualify for between 10 and 15 percent of their conservatively estimated gross settlement amount in pre-settlement funding in Delaware.
Pre-settlement funding in Delaware is non-recourse. Based on your particular case, the lender takes the risk that you receive the anticipated settlement. If you do not receive compensation, the funding does not require repayment.
While most recipients use their pre-settlement funds to pay bills, there are no restrictions on what you can do with the money.
Because pre-settlement funding is not a loan, there is no credit check, income verification, or employment history needed. If you turned to a bank for a loan to stay afloat until receiving the settlement, all of those conditions would apply.
Types of Cases that Qualify for Pre-Settlement Funding
Mustang Funding offers flexible financial support to plaintiffs involved in a wide range of civil lawsuits and personal injury cases. Here are some of the most common types of cases that may be eligible for pre-settlement funding:
- Personal Injury. Injuries resulting from car accidents, slips and falls, or other negligence-related incidents can qualify for funding to help cover living expenses, medical bills, and lost wages while the case is pending.
- Wrongful Death. Funding is typically available to individuals who were financially dependent on the deceased, such as a spouse or child.
- Medical Malpractice. Claims involving harm caused by healthcare provider negligence, such as surgical errors, misdiagnosis, or birth injuries, often require extended litigation.
- Product Liability. Cases involving defective medical devices, dangerous drugs, or unsafe consumer products may be eligible for funding.
- Employment and Labor Disputes. Wrongful termination, workplace harassment, or discrimination are eligible for funding, offering financial relief while pursuing justice through legal channels.
- Mass Torts and Class Actions. Individuals participating in mass torts or class action lawsuits can access funding to manage financial strain during lengthy and complex legal proceedings.
- Civil Rights Violations. Victims of unlawful discrimination, police misconduct, or other civil rights abuses may be eligible for funding to support their case and maintain financial stability during litigation.
Mustang Funding provides fast, non-recourse capital solutions that allow plaintiffs to stay financially secure while their legal claims are resolved, without adding further stress to an already challenging situation.
Is Pre-settlement Funding a Good Idea?
Pre-settlement funding can be a practical and timely solution for individuals facing financial hardship due to a pending personal injury lawsuit. This form of financial support allows your attorney the time and flexibility to negotiate the most favorable settlement terms or prepare for trial without the added pressure of your immediate financial needs.
Unlike traditional bank loans, pre-settlement funding carries no repayment obligation if the case is unsuccessful, making it a lower-risk option for plaintiffs.
Even when a case has substantial legal merit, personal injury lawsuits can take months or years to resolve—especially if they proceed to trial. During this time, many plaintiffs struggle to cover essentials such as rent, mortgage payments, food, and utilities, adding emotional and financial stress to an already difficult situation.
Pre-Settlement Funding Helps Level the Playing Field
Insurance companies often take advantage of plaintiff vulnerability, delaying settlement offers in hopes that financial pressure will compel you to accept less than you deserve. Pre-settlement funding helps level the playing field by giving you the resources to meet your basic needs while your attorney fights for the compensation you’re entitled to.
Additionally, eligibility for this type of funding is based solely on the strength of your legal claim—your credit score and employment history are not factors.
How to Qualify for Legal Funding in Delaware
Qualifying for legal funding in Delaware through Mustang Funding is a straightforward process:
Basic Eligibility Requirements:
- You must be involved in a qualifying civil case, such as personal injury, medical malpractice, product liability, employment discrimination, or mass tort litigation.
- You must be represented by an attorney. Your lawyer will be asked to share case-related documentation with Mustang Funding to evaluate your request.
- Your case must have strong merit and the potential for a settlement or judgment. Mustang Funding assesses the facts of your case, not your credit history or employment status when determining eligibility.
- An active lawsuit must already be filed. Cases still under investigation or not yet in litigation are not eligible for funding.
Once your application is submitted, Mustang Funding works closely with your legal team to review your case and quickly make a decision, often within 24 to 48 hours. We are committed to transparency, integrity, and unwavering support for our clients as they navigate the legal landscape.
How to Apply for Lawsuit Loans
Funding companies provide a financial advance directly to you, not your lawyer, to use in any manner you see fit. Assuming you’ve met the threshold requirement of retaining legal counsel and have a pending legal action filed in court, the first step toward receiving a cash advance on your future settlement is to apply.
- Step One: Fill out an application. Every funding company and state has slightly different rules and application forms, but most will require your attorney’s input to help assess the value of your case. Always provide adequate contact information for them or the law firm handling your case.
- Step Two: Wait for the lawsuit assessment by the underwriting team. At Mustang Funding, our internal team evaluates the strength of your claim and determines an appropriate monetary figure. After consulting with your attorney, we will base our final decision on whether we believe you will win compensation and how much you are likely to receive. If you have provided complete contact information for your attorney, we could have an answer for you in as little as 24 hours.
- Step Three: Review and accept the funding proposal. When you receive it, review the details with your attorney. They are intimately familiar with the details and value of your case, so they are best equipped to provide counsel as to whether you should accept the funds and how much to accept. If you accept the proposal, funds will be dispersed via check or direct transfer.
Mustang’s pioneering spirit and commitment to innovation make us a trailblazer in the legal asset industry, offering a unique blend of experience, vision, and inclusivity to our valued clients.
Delaware Pre-Settlement Funding Laws
There are no state laws relating specifically to pre-settlement funding in Delaware. You must have a pending personal injury lawsuit filed by an attorney. Your attorney must agree to work with the lender and provide relevant information and documentation about your case for the lender’s review.
After conducting a careful examination of your case, the lender makes a decision regarding whether to approve your pre-settlement funding in Delaware application. That decision is made based on the strength of the case and the estimated amount of your settlement.
In most cases, you will receive your funding within 24 to 48 hours after your application is approved.
Personal Injury Pre-Settlement Funding in Delaware
Statute of Limitations
The statute of limitations for filing a personal injury lawsuit in Delaware is generally two years from the date of the accident. Failure to file your lawsuit within that timeframe means your case cannot go forward.
Modified Comparative Negligence.
When it comes to liability in personal injury cases, Delaware uses the standard of modified comparative negligence. That means that as long as you were less than 51 percent responsible for the accident, you can still receive compensation. However, a judge or jury reduces your amount of compensation by the percentage of fault.
For instance, if it is determined that you were 20 percent at fault, a $100,000 award is reduced to $80,000.
Contact Us
For more information about pre-settlement funding in Delaware and whether you qualify, schedule a free consultation with Mustang Funding today. We serve Dover, Wilmington, Newark, Middletown, and other areas of the state. Since 2018, we have provided more than $50 million in funds to plaintiffs and attorneys.
