Pre-settlement funding is a financial service designed to provide plaintiffs with cash advances against their expected settlement.
Unlike traditional loans, pre-settlement funding is non-recourse, meaning there are no monthly payments, no credit checks, and no personal liability if the case is lost.
This page answers common questions about repayment and monthly obligations associated with pre-settlement funding.
Do I Have to Make Monthly Payments on a Pre-Settlement Funding Advance?
No, you do not have to make monthly payments on a pre-settlement funding advance.
Pre-settlement funding is non-recourse, meaning repayment is only required if the plaintiff wins or settles their case. The funds are repaid directly from the settlement, not out of pocket. This ensures no monthly bills and no financial pressure during your lawsuit.
FAQs About Monthly Payments and Pre-Settlement Funding
What Happens If My Case Is Unsuccessful?
Pre-settlement funding is non-recourse, which means you are not required to repay the settlement advance if your case is lost. There is no personal liability and no risk of owing money if you do not receive compensation. This makes legal funding a safer financial option during a lawsuit.
Is Pre-Settlement Funding a Loan?
No, pre-settlement funding is not a traditional loan. It is a non-recourse cash advance based on the potential value of your lawsuit. Unlike personal or payday loans, it is not classified as debt, and you are not required to make monthly payments or repay the funds out of pocket.
Instead, repayment is contingent on a successful outcome, meaning you only repay the advance if your case settles or you win. The repayment comes directly from your settlement proceeds. If you lose, you owe nothing.
This unique structure provides financial relief without the burden of traditional loan obligations, making it a risk-free option frequently used by personal injury plaintiffs who need help covering living expenses, medical costs, and lost wages while their cases are still pending.
Read our step-by-step guide on getting a pre-settlement advance while your lawsuit is pending: Can I Get a Loan on a Pending Lawsuit?
Is a Credit Check Required for Pre-Settlement Funding?
No, credit checks are typically not required for pre-settlement funding. Approval is based on the strength of your case—not your credit history—making this type of legal funding accessible to plaintiffs with poor credit. This provides critical financial relief during a lawsuit, even for those facing financial hardship.
How Is My Pre-Settlement Funding Amount Calculated?
The amount of pre-settlement funding you can receive depends on the expected value of your case and the risk involved. Key factors include the strength of your legal claim, the severity of your injuries, available insurance coverage, and how likely you are to win or settle successfully.
How Long Does Pre-Settlement Funding Take to Arrive?
Pre-settlement funding is typically available within 24 to 48 hours after your application is approved.
Here’s a typical timeline:
- Apply: Submit a short application online or over the phone.
- Attorney Verification: The funding company contacts your lawyer to confirm case details.
- Case Review: Underwriters evaluate your case’s strength and estimated value.
- Funding Sent: Once approved, funds are usually sent via direct deposit or e-check the same day.
What Can I Use Pre-Settlement Funds For?
Pre-settlement funds offer flexibility and can be used for various urgent personal expenses, including:
- Medical Bills: Covering treatment costs and healthcare needs.
- Living Expenses: Paying for rent, mortgage, utilities, and groceries.
- Transportation: Managing travel costs related to your case or daily needs.
- Childcare: Ensuring care for children while you focus on your legal proceedings.
This flexibility allows you to address immediate financial needs without restrictions, providing peace of mind during the legal process.
What Are the Fees Associated with Pre-Settlement Funding?
The fees and rates for pre-settlement funding vary depending on the provider.
Some companies charge a flat fee, while others use compound interest that increases over time. Because of these differences, it’s essential to review your contract carefully.
A reputable legal funding company will clearly disclose all costs upfront. There should be no hidden fees. Make sure you fully understand how the fees work and how much you may owe if your case takes months or even years to settle. Transparency and clarity in the terms help protect your settlement and avoid surprises later.
Will My Attorney or the Defendant Know About My Funding?
Your attorney will be involved in the legal funding process, but the defendant is typically not made aware of your pre-settlement funding.
The funding company will contact your attorney to verify key case details and assist with the approval process. While attorney consent and participation are required, your funding agreement is generally kept confidential and does not need to be shared with the opposing party.
Disclosure is only necessary in rare cases if ordered by the court, meaning your legal strategy and settlement negotiations are usually unaffected.
For a deeper look at attorney involvement in legal funding, read: Do I Need a Lawyer to Get Legal Funding?
Key Takeaways About Monthly Payments and Legal Funding
- No monthly payments
- Repay only if you win
- No credit check required
- Use funds however you need
- Fast access to cash
Ready to Apply for Pre-Settlement Funding?
Express Legal Funding offers fast, risk-free financial support with no monthly payments required. Get the cash you need now, so you can focus on your recovery while your lawyer fights for a fair settlement.
Apply Today:
- Phone: (888) 232-9223
- Apply Now – Complete our quick and easy application form to get started.
Most clients receive funding in as little as 24 hours after approval. There are no upfront fees, no credit checks, and no repayment unless you win.
