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 based on experience, the exact timeline for resolution is impossible to predict with certainty. Many factors, such as disputed liability, complex evidence, or delays in the court system, can cause a case to take much longer than expected.
Plaintiffs typically apply for pre-settlement funding to cover basic living expenses and medical bills, although there are no restrictions on how the funds are used. Applicants generally face financial hardship due to the inability to work. Pre-settlement financing, or litigation funding, offers relief from financial pressures while you wait for your case to settle.
Common Reasons Why Your Case May Take a Long Time to Settle
Several factors can slow down the legal process, even in seemingly straightforward cases, including the following:
- Disputed liability – If the other party denies fault, both sides may need to gather and analyze extensive evidence before negotiations can begin.
- Serious or ongoing medical treatment—Cases involving long-term injuries often wait until treatment is complete to fully assess damages.
- Insurance company delays – Some insurers may drag out the process to pressure you to accept a lower offer.
- Court backlogs or scheduling issues – If your case moves toward litigation, it may be delayed due to congested court calendars or procedural hurdles.
No matter the cause of the delay, it’s important to understand that pre-settlement funding must still be repaid if your case resolves favorably — even if it takes months or years. The length of your case does not change your obligation.
Apply for Pre-Settlement Funding Today
How Repayment Is Prioritized
When a settlement is reached or a court verdict is awarded, the funds are typically distributed in a set order to satisfy all legal and financial obligations tied to the case:
- Medical liens – Healthcare providers or insurers who paid for your treatment may have a legal right to reimbursement from your settlement.
- Attorney fees– These are usually paid as a percentage of the settlement based on your contingency fee agreement with your lawyer.
- Litigation and case-related expenses – This includes costs, such as expert witness fees, filing fees, and other legal expenses advanced during the case.
- Litigation funding – If you received pre-settlement funding, the lender is repaid from the settlement proceeds after higher-priority obligations are satisfied.
- Plaintiff – Whatever remains after all other obligations are paid goes to you, the injured party.
This structure ensures that all legal and financial obligations — such as liens, attorney fees, and case-related expenses — are addressed before you receive your share of the settlement or court award.
Contact Mustang Funding
Founded in 2018 and based in Wayzata, MN, our mission is to empower the pursuit of justice for individuals and law firms nationwide. Our innovative and flexible litigation funding solutions ensure that no one is denied their right to a fair legal battle due to financial constraints.
If you would like more information about litigation funding and whether it is the right choice for you, learn more from our ultimate guide to pre-settlement funding. We serve litigants from coast to coast. Have questions? Contact us today.
“Our team members are always within reach and ready to talk whenever your funding needs arise.” – Mustang Litigation Funding
