Yes, many personal injury plaintiffs use litigation funding or pre-settlement funding to help cover essential living expenses while their case is pending. There are typically no restrictions on how the money is spent. This support can ease economic pressure and allow you to focus on your recovery and legal case, without resorting to traditional loans or high-interest credit cards that could negatively impact your financial standing.
Pre-settlement lawsuit funding is not a loan. It is a non-recourse cash advance on your lawsuit settlement. That means you do not have to pay it back even if you lose your case. Contact Mustang Funding to learn more.
How You Can Use Pre-Settlement Funding
As noted, pre-settlement funding or litigation funding offers plaintiffs financial support while their case is pending. In most jurisdictions, recipients can use these funds at their discretion. Please consult your lawyer to ensure compliance with state regulations.
Common uses include:
- Covering Living Expenses. Plaintiffs often rely on pre-settlement funding to afford rent, utilities, groceries, and other daily necessities while they are unable to work due to their injuries.
- Paying Medical Bills. While many individuals have health insurance, pre-settlement funding can help cover out-of-pocket medical costs that insurance does not fully pay. This may include co-pays, deductibles, rehabilitation services, medical equipment, and prescription medications that fall outside your coverage or require upfront payment.
- Vehicle Repair or Replacement. If the legal claim involves a motor vehicle accident, pre-settlement funding may be used to repair or replace a damaged vehicle.
- In-Home Care During Recovery. Individuals recovering from serious injuries can use the funds to hire home health aides or caregivers to assist with daily tasks.
- Paying Down Debt. Funding may be used to prevent debt accumulation by covering credit card bills, loans, and other financial obligations during the litigation period.
- Emergency Expenses. Unexpected costs such as travel, child care, or urgent home repairs may also be covered using lawsuit funding.
Understanding how pre-settlement funding works can help you make informed decisions about managing your finances while your legal case is pending.
Who Is Eligible?
To be eligible, you must have a pending lawsuit and be represented by legal counsel. The process typically begins by submitting an online application, including your attorney’s contact details. The litigation funding company will then consult with your attorney to evaluate the merits of your case. Their cooperation is necessary for the application to proceed.
When you receive your proposal, 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.
The funds will be disbursed via check or direct transfer if you accept the proposal. This expedited process can be especially helpful in emergencies.
Contact Mustang Funding Today
Insurance companies often intentionally prolong settlement negotiations, knowing that financially vulnerable accident victims may feel pressured to accept a lower offer simply to access cash quickly. Pre-settlement funding helps level the playing field by providing financial support during this period. This gives you and your attorney the time and leverage to pursue a fair and reasonable settlement.
Learn more from Mustang Funding’s ultimate guide to pre-settlement funding and see how pre-settlement funding can work for you.
About Mustang Funding
Mustang Funding, founded in 2018 and based in Wayzata, MN, is a litigation finance company dedicated to empowering individuals and law firms nationwide with transparent and innovative financial solutions. With over $170 million funded, 10,000+ checks issued, and more than 3,000 cases financed, Mustang provides plaintiff pre-settlement funding, law firm financing, and commercial funding to meet diverse client needs. Their commitment to transparency, integrity, and expertise sets them apart, offering tailored financial support to plaintiffs, businesses, and legal professionals. By bridging capital gaps and fostering access to justice, Mustang Funding continues to lead the legal asset investment industry with a strategic, inclusive, and forward-thinking approach.
