Can You Borrow Money From a Pending Lawsuit? It’s Fast!

Updated: February 7, 2025 9:26 am
16 min read
Aaron Winston, Strategy Director at Express Legal Funding.
Aaron R. Winston
Author & Strategy Director

Keypoints

The blog post explains how borrowing money from a pending lawsuit is possible through a lawsuit loan or pre-settlement funding. This financial option allows plaintiffs to receive a cash advance based on the estimated value of their case, helping them cover essential expenses like medical bills, rent, and other living costs. Unlike traditional loans, borrowing money through pre-settlement funding is non-recourse, meaning repayment is only required if the case is won or settled. Approval depends primarily on the strength of the lawsuit, not the plaintiff’s credit history. However, these advances often come with higher fees than conventional borrowing methods.

Keypoints

  • Borrowing money from a pending lawsuit is possible through a lawsuit loan or pre-settlement funding.
  • The cash advance is based on the anticipated value of the case and helps cover living expenses.
  • Repayment is only required if the case is won or settled, as this is a non-recourse financial option.
  • Approval depends on the lawsuit’s merits rather than the plaintiff’s credit history.
  • Borrowing through pre-settlement funding typically involves higher fees than traditional loans.

Content Metada

Title:
Can You Borrow Money From a Pending Lawsuit? It’s Fast!
Thumbnail:
A confident woman holding a stack of money in a courtroom, symbolizing financial relief through borrowing money from a pending lawsuit.
Author:
Aaron R. Winston
Published Date:
January 19, 2025
Last Updated Date:
February 7, 2025 9:26 am
Publisher:
Express Legal Funding
Copyright Owner:
© Unkown Entity Holdings, LLC

Content Context

Primary Content Category:
Law & Government > Legal (Confidence: 0.95)
Secondary Content Category:
Finance > Loans (Confidence: 0.85)
Relevant Keywords:
pre-settlement funding, lawsuit loan, legal funding, lawsuit cash advance, non-recourse funding
Relevant Hashtags:
#PreSettlementFunding, #LawsuitLoan, #LegalFunding
Additional Insight:

This page offers comprehensive information about how to borrow money from a pending lawsuit through pre-settlement funding, a financial product that allows plaintiffs to access funds before their case settles. It targets individuals involved in lawsuits who are experiencing financial hardship. The content emphasizes the risk-free nature of this type of funding, as repayment is only required if the case is won or settled. It also highlights the advantages of pre-settlement funding over traditional loans, such as no credit checks and no monthly payments.

A confident woman holding a stack of money in a courtroom, symbolizing financial relief through borrowing money from a pending lawsuit.

No matter how strong your claim is, legal battles can take time, and financial strain often builds along the way.

That’s why many plaintiffs find themselves asking, “Can you borrow money from a pending lawsuit?” The good news is, the answer is yes.

Pre-settlement funding is a fast, reliable solution that allows claimants to access the cash they need before their case settles.

Unlike traditional loan products, this innovative financial tool is a type of non-recourse debt, meaning repayment is only required if you settle or win your case.

Keep reading to learn how pre-settlement funding works, who qualifies, how it differs from traditional debt, and why Express Legal Funding is the trusted choice for anyone wondering, “Can I borrow money from a pending lawsuit?”

Infographic titled 'Key Qualifications: Borrow Money from Your Lawsuit,' listing three qualifications: Valid, Active Lawsuit with a scales of justice icon; Significant Settlement Potential with cash and gavel icon; and Attorney Participation with a lawyer icon, branded with Express Legal Funding logo.
Key Qualifications at a Glance: This infographic highlights the essential criteria for borrowing money from your lawsuit, including having a valid case, significant settlement potential, and attorney participation. Explore the full article for detailed insights.

Disclaimer: While pre-settlement funding is often referred to as “borrowing” or a “loan” for accessibility and understanding, it is not a conventional loan. Pre-settlement funding is a non-recourse cash advance, meaning repayment is only required if your case is won or settled successfully.

💡 Explore the Different Types of Legal Funding Options

Can You Borrow Money From a Pending Lawsuit?

A smiling woman holding cash in a courtroom, with a golden scale of justice in the background, representing borrowing money from a lawsuit.

Borrowing money from a pending lawsuit is possible through a lawsuit loan or pre-settlement funding. This financial solution assists individuals in covering expenses while awaiting case resolution.

This non-recourse cash advance provides fast financial relief to plaintiffs during their legal case, with repayment only required if you win or settle. Loans on pending lawsuits are commonly used to cover the following bills and payments:

  • Living expenses: Rent, groceries, and utilities.
  • Medical bills: Costs related to injuries from the case.
  • Emergency expenses: Unexpected costs like car repairs.

This risk-free borrowing option provides an alternative to traditional loans, enabling plaintiffs to focus on their recovery and legal battle without the stress of debt or credit checks.

Understanding what pre-settlement funding is leads to another common question: How does the process work? Here’s a step-by-step guide to help you navigate applying for pre-settlement funding.

How Does Borrowing Money From Your Lawsuit Work?

A happy man talking on the phone while sitting on his porch, symbolizing the convenience of applying for pre-settlement funding.

Step-by-Step Process of a Getting a Pending Lawsuit Loan

1. Apply with a Trusted Legal Funding Provider

Begin by contacting a reputable lawsuit funding company, such as Express Legal Funding. The application process is quick and straightforward—you can apply online or over the phone in just a few minutes.

2. Case Review and Attorney Collaboration

Once your lawsuit loan application is submitted, the funding company will communicate with your attorney to review the specifics of your case. They will evaluate:

The merits of your case (e.g., strength of evidence and liability).

  1. The likelihood of success and potential settlement value.
  2. This review ensures that the funding aligns with your case’s unique circumstances.

3. Receive Your Funds Quickly

If approved, you can receive your pre-settlement cash advance within 24 hours. In many cases, plaintiffs receive their funds on the same day, providing immediate financial relief for urgent expenses.

🏆 Find the right fit for your case: Explore the 10 Best Legal Funding Companies.

Key Benefit: Risk-Free Borrowing

One of the most significant advantages of borrowing from your pending lawsuit is that it’s a non-recourse financial solution. This means:

  • No repayment is required if you lose your case, as the lien is placed on your potential lawsuit settlement, not on you personally.
  • If your case is successful, repayment comes directly from your settlement.

This risk-free option offers peace of mind, allowing plaintiffs to focus on recovery and their lengthy legal proceedings without the stress of traditional debt.

🔒 Secure the financial relief you need while your case is pending: Guaranteed Pre-Settlement Funding.

Why Choose Borrowing Against Your Lawsuit Over Traditional Loans?

Compare the Options

  1. No Monthly Payments: Unlike personal loans or credit cards, pre-settlement funding does not require monthly payments. Instead, repayment is deferred until your case is settled or won. This eliminates the burden of managing regular payments while waiting for your case to be resolved.
  2. Case-Based Approval, Not Credit-Based: Unsecured loans often require good credit and detailed financial histories, which can make them inaccessible to many plaintiffs. Pre-settlement funding, on the other hand, is based solely on the strength of your case, meaning your financial background or credit score will not affect your eligibility.

The non-recourse nature of pre-settlement funding means there is zero risk for the plaintiff if they lose the case. This makes it an attractive option for those who need financial assistance without the burden of personal debt.

Clarification on Costs

While pre-settlement funding does accrue funding fees over time, there are no ongoing interest payments required during your case. All costs are included in the repayment amount, which is only due if your case is won or settled.

It’s clear that pre-settlement funding offers significant advantages, but how do you know if you’re eligible? Let’s break down the criteria to see if pre-settlement funding is right for your case.

Who Qualifies to Borrow Money From a Pending Lawsuit?

If you’re involved in a lawsuit and facing financial challenges, you may qualify to borrow money from your lawsuit through pre-settlement funding. Eligibility is determined by the specifics of your case rather than your credit history or employment status.

Key qualifications include:

1. A Valid, Active lawsuit

Your claim must involve monetary damages and be filed with legal representation.

2. Significant Settlement Potential

The likelihood of a successful outcome and the estimated value of your settlement are primary factors.

3. Attorney Participation

A lawyer and a client standing confidently in a courtroom, with the judge in the background, highlighting attorney participation for lawsuit funding.

Your attorney plays a critical role in the pre-settlement funding process. They must provide necessary case details and collaborate with the funding company to evaluate your eligibility. Honest and trustworthy funding companies also require your attorney to (required by law in some states):

  • Acknowledge the agreement: Confirm they are your lawyer and that you’ve signed the pre-settlement funding contract.
  • Facilitate repayment: Agree to repay the funding from your settlement proceeds once the case is resolved.

This collaboration ensures transparency and aligns the funding process with the specifics of your legal claim.

⏳ Already signed a settlement agreement but can’t afford to wait for your settlement check to be disbursed? Learn How You May Qualify for Post-Settlement Funding Today.

What’s Next?

Once you know you qualify, the next question is how much funding you can receive. Several factors determine the amount of your advance, including your case’s strength and potential settlement value.

How Much Money Can You Borrow From a Pending Lawsuit?

The amount of money you can borrow from a pending lawsuit depends on several factors, including the strength of your case, the estimated settlement value, and your immediate financial needs. Here’s a closer look at each:

1. Strength of the Case

A gauge showing the strength of a case, surrounded by stacks of cash, representing how case strength impacts pre-settlement funding eligibility.

A stronger case with a high likelihood of success typically qualifies for a larger funding advance. For example, a plaintiff suing for damages after being rear-ended in a car accident may have a clear path to winning, making the case more attractive to funding companies.

2. Expected Settlement Size

The potential value of your settlement plays a significant role in determining the amount you can borrow. Cases with higher settlement values, such as those involving severe injuries or large insurance policy limits, often result in more significant funding approvals.

3. Immediate Financial Needs

Your current financial situation and pressing expenses are also taken into account. For instance, if a personal injury victim requires $3,000 in advance funding to avoid eviction, the funding company may approve that amount instead of a lower figure, such as $2,000, to meet their critical needs.

By considering these factors, pre-settlement funding companies tailor the advance amount to fit your case and financial circumstances, ensuring you get the support you need while your lawsuit progresses.

Borrowing Money from a Lawsuit Quick Facts

This table provides a concise overview of borrowing money from a pending lawsuit through pre-settlement funding. It answers common questions about how the process works, eligibility criteria, funding amounts, and key benefits, offering plaintiffs a quick reference to understand their options.
Quick Facts About Borrowing Money from a Pending Lawsuit: Key Details and Answers
QuestionAnswer
Can I borrow money from my lawsuit?Yes, through pre-settlement funding, you can borrow money against your potential lawsuit settlement.
How does it work?A legal funding company provides a cash advance, repaid only if you win or settle your case.
What can the money be used for?Essential expenses like rent, groceries, utilities, medical bills, and other urgent costs.
Is my credit score required?No, your credit score or financial history is not part of the approval process.
What happens if I lose my case?You owe nothing if you lose your case—pre-settlement funding is a risk-free option for plaintiffs.
How fast can I get the money?Funds are often disbursed within 24 hours of approval, with same-day options available in many cases.
How much can I borrow?The funding amount depends on the strength of your case, settlement value, and immediate financial needs.

Range of Eligible Funding Amounts

Express Legal Funding offers a range of funding from $500 to $500,000, depending on the specifics of your case and its potential recovery value.

How to Apply for a Pre-Settlement Loan on Your Lawsuit

A happy client receiving cash from a Express Legal Funding, illustrating the ease of obtaining pre-settlement funding for a lawsuit.

Applying for pre-settlement funding is simple and straightforward. Follow these three easy steps to get the financial support you need while your case is pending:

1. Call or Apply Online

Start your application process by reaching out to Express Legal Funding. You can call us directly or complete a quick online application. The process is fast, taking just a few minutes, with no cost to apply and no obligation to accept your pre-settlement funding offer (though we hope you’ll love it).

🕒 Receive the cash you need fast: Same-Day Pre-Settlement Loans.

2. Case Review and Attorney Collaboration

Once your application is submitted, our team will work closely with your attorney to review the details of your case. We evaluate factors such as the strength of your case, its potential settlement value, and your immediate financial needs. This collaboration ensures that the funding we provide aligns with your case’s specifics.

💼 Don’t have a lawyer yet? Discover the 15 Must-Ask Questions in a Free Lawyer Consultation.

3. Receive Your Funds Promptly

If your application is approved, you can receive your funds as quickly as the same day. Most plaintiffs receive their pre-settlement cash advance within 24 hours, giving you the financial relief you need without delay.

Applying is simple, but selecting the right funding provider is crucial. Here’s why Express Legal Funding is the trusted choice among attorneys for referring clients who need fast, reliable financial support during their legal claims.

Key Benefits of Our Pre-Settlement Funding Services

  1. Transparent Pricing and Fast Approvals: At Express Legal Funding, we prioritize transparency by offering clear pricing with no hidden fees. Our streamlined process ensures fast approvals so you can get the financial relief you need quickly.
  2. Low Rates Compared to Competitors: Our rates are competitive, making our pre-settlement funding services more affordable than many alternatives. This means you keep more of your settlement money when your case is resolved.
  3. 100% Risk-Free Guarantees: With our non-recourse funding, you only repay if you win or settle your case. If you lose, you owe nothing—providing complete peace of mind during a challenging time.
  4. No Employment Verifications or Credit Checks: Unlike traditional lenders, pre-settlement funding eligibility is based entirely on the strength of your case—not your employment status or credit history. This allows you to access the financial support you need without the stress of providing proof of income or worrying about your credit score.

Case Details

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Treatment Details

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Your Attorney's Contact Info

A professional attorney reviewing legal documents in a law office, symbolizing legal and ethical considerations for borrowing money from a lawsuit.

Legitimacy of Pre-Settlement Funding

Pre-settlement funding is a legitimate and recognized financial solution designed to help plaintiffs navigate the financial challenges of a legal battle.

This type of funding is regulated in many jurisdictions to ensure consumer protection and maintain industry standards. Regulations often focus on transparency in contracts, fee disclosures, and clear repayment terms to protect plaintiffs from predatory practices.

Key elements supporting its legitimacy:

  • Attorney Involvement: The process requires your attorney’s collaboration to verify case details and confirm the terms of the funding agreement.
  • State Regulations: Some states have specific rules governing pre-settlement funding, including caps on funding fees and disclosure requirements to safeguard plaintiffs.
  • Legal Recognition: Courts in many jurisdictions acknowledge pre-settlement funding as a valid financial arrangement, distinct from credit-based loans, due to its non-recourse nature.

Pre-settlement Funding Ethical Practices

Working with a reputable pre-settlement funding company ensures that the process is ethical and plaintiff-focused. Companies like Express Legal Funding adhere to best practices that prioritize transparency, fairness, and plaintiff well-being.

Key ethical standards of pre-settlement funding include:

  1. Transparent Agreements: Clear and upfront disclosure of all terms, including the total repayment amount, ensures plaintiffs understand their obligations.
  2. No Pressure to Accept: Ethical funding companies never coerce plaintiffs into accepting offers. Clients can review terms at their own pace before deciding.
  3. No Hidden Fees: Reputable providers ensure there are no unexpected charges or ambiguous clauses in the agreement.
  4. Attorney Collaboration: Maintaining open communication with your attorney ensures that funding aligns with your case’s specifics and your best interests.
  5. Non-Recourse Structure: The funding is designed to be risk-free for plaintiffs. If you lose your case, you owe nothing—providing peace of mind during legal proceedings.

Why Ethical Practices Matter

Choosing an ethical funding company protects plaintiffs from:

  • Predatory Lending: Ensures fair rates and terms, avoiding companies that exploit financial vulnerability.
  • Misaligned Goals: Honest companies prioritize your recovery and legal case over maximizing profit.
  • Financial Overextension: By working with your attorney, funding companies help determine an advance amount that aligns with your actual needs and case value, preventing excessive borrowing.

By selecting a trusted provider like Express Legal Funding, plaintiffs can feel confident that their financial needs are met in a way that supports their legal journey while adhering to strict ethical standards.

Alternatives to Borrowing Money Against Your Lawsuit

Here are some other financial options to consider:

  • Personal Loans: Borrow from a bank or credit union, though this requires good credit and monthly repayments.
  • Credit Cards: Useful for short-term expenses but can lead to high-interest debt over time.
  • Family or Friends: Borrowing informally, though it can strain relationships.

🔄 Explore your options beyond pre-settlement funding: 15 Alternatives to Lawsuit Loans.

Why Pre-Settlement Funding May Be Better

  • Non-recourse funding: You owe nothing if you lose your case.
  • No credit checks or financial history requirements.
  • Fast access to funds: Receive money within 24 hours of approval.

Risks and Considerations of Taking Out a Loan on Your Lawsuit

Potential downsides of a obtaining a pending lawsuit loan include:

  • Impact on Settlement Amounts: Accepting too much funding could reduce the remaining portion of your settlement after fees and repayment.
  • Costs of Funding: While pre-settlement funding is transparent, it can be more expensive than traditional loans due to its non-recourse nature.

Responsible Lawsuit Loan Borrowing Tips

  • Only borrow what you need to cover immediate expenses.
  • Discuss funding amounts with your attorney to ensure it aligns with your settlement expectations.
  • Choose a reputable company, like Express Legal Funding, with fair pricing and transparent terms.

🤔 Not sure who to trust? Legal Funding Brokers vs. Lawsuit Loan Companies: How to Choose?

Common Myths About Borrowing Money From a Pending Lawsuit

Common misconceptions about pre-settlement legal funding include:

  • “It’s the same as a loan.” Pre-settlement funding is not a traditional loan; it is non-recourse funding, meaning repayment is only required if you win your case.
  • “It’s too expensive.” Discuss low-cost funding options available at Express Legal Funding, emphasizing transparency and competitive rates.

Final Thoughts: Is Borrowing Pre-Settlement Funding From Your Lawsuit Right for You?

Pre-settlement funding can be a lifeline for plaintiffs facing financial strain during a lawsuit. By providing a risk-free cash advance, you can cover essential expenses—such as rent, medical bills, and daily necessities—without incurring traditional debt or credit checks. If you’re waiting for your case to settle and struggling to make ends meet, pre-settlement funding offers a stress-free financial solution.

At Express Legal Funding, we’re dedicated to providing plaintiffs with fast, transparent, and reliable pre-settlement funding tailored to their needs. Our non-recourse funding ensures that you only repay if you win your case, giving you peace of mind as you focus on recovery and the legal process.

Need financial support during your lawsuit? Express Legal Funding is here to help. Apply today to receive the cash you need—usually within 24 hours of approval!

Don’t let financial stress hold you back—get the support you need to stay on track during your legal journey.

FAQs About Borrowing Money on a Pending Lawsuit Settlement

A glowing "FAQ" text in a courtroom with stacks of money on a table, symbolizing answers to common questions about borrowing from a lawsuit through pre-settlement funding.

How long does it take to get funding on my lawsuit settlement?

Funding is typically disbursed within 24 hours of approval. For instance, if your application is submitted and your attorney promptly provides the necessary case details, you may receive funds on the same day. However, cases requiring additional documentation could take slightly longer.

Can I apply if I’ve already received funding from another company?

Yes, you can apply for additional funding. For instance, if your initial funding addressed only your immediate expenses and your case is still ongoing, Express Legal Funding can assess your remaining settlement value to determine your eligibility for further advances.

Keep in mind that the new funding will need to include a buyout of the previous funding, and the total funding amount should generally not exceed 10-20% of your case’s estimated settlement value.

What happens if I lose my case?

With non-recourse funding, you owe nothing if your case is unsuccessful. This risk-free structure is designed to protect plaintiffs. For example, if you’re involved in a personal injury case that unexpectedly goes to trial and the verdict doesn’t favor you, there is no financial obligation to repay the advance.

Can I receive funding for any type of legal case?

Pre-settlement funding is primarily available for personal injury cases, medical malpractice, employment discrimination, and other civil lawsuits involving monetary damages. For example, if you’re suing for injuries sustained in a car accident or a workplace discrimination claim, you’re likely eligible. Criminal cases, however, are not covered.

🩺 Discover the most common types of medical malpractice cases and how they impact lawsuits.

How much does pre-settlement funding cost?

The cost depends on factors like your case’s settlement value and the funding amount. The best companies like Express Legal Funding offer transparent pricing without hidden fees. For instance, a $3,000 advance might include a pre-agreed origination fee, ensuring you know the total repayment amount upfront.

Will pre-settlement funding affect my credit score?

No, pre-settlement funding doesn’t involve credit checks and has no impact on your credit score. Unlike traditional loans, approval is based solely on your case’s merits. For example, even if you’ve faced financial difficulties in the past, your case strength can secure the funding you need.

How do legal funding companies determine the amount of money I can get as a loan from my lawsuit?

The funding amount depends on the strength of your case, its estimated settlement value, and your immediate financial needs. For instance, if your projected settlement exceeds $50,000 and you require $5,000 for rent and medical bills, the funding company will evaluate your eligibility based on these factors.

Because $5,000 represents only 10% of a $50,000 settlement, your approval odds are higher than in a scenario where your settlement will be capped at $25,000 due to the insurance coverage being minimum policy limits.

Can I use the funds for anything I want?

While there are no restrictions, most plaintiffs use the funds for essential expenses like rent, utilities, medical bills, or groceries. For example, if you’re unable to work due to injuries from your case, pre-settlement funding can cover monthly bills and necessities.

What if my attorney doesn’t work with pre-settlement funding companies?

Most attorneys are familiar with the process and are open to collaborating with funding companies to help their clients. If your attorney has concerns, Express Legal Funding can explain the benefits of pre-settlement funding and how it supports plaintiffs.

Legal counsel is required to acknowledge funding agreements and help facilitate repayment, ensuring ethical practices.

Disclaimer: Express Legal Funding is a pre-settlement funding company and is not a law firm. While the content on this page is well-researched and reviewed by licensed attorneys, it does not constitute legal advice and should not be considered a substitute for legal representation.

About the Author

Aaron R. Winston

Aaron Winston is the Strategy Director of Express Legal Funding. As “The Legal Funding Expert,” Aaron has more than ten years of experience in the consumer finance industry. Most of which was as a consultant to a top financial advisory firm, managing 400+ million USD in client wealth. He is recognized as an expert author and researcher across multiple SEO industries.

Aaron Winston earned his title “The Legal Funding Expert” through authoritative articles and blog posts about legal funding. He specializes in expert content writing for pre-settlement funding and law firm blogs.

Each month, tens of thousands of web visitors read his articles and posts. Aaron’s thoroughly researched guides are among the most-read lawsuit funding articles over the past year.

As Strategy Director of Express Legal Funding, Aaron has devoted thousands of hours to advocating for the consumer. His “it factor” is that he is a tireless and inventive thought leader who has made great strides by conveying his legal knowledge and diverse expertise to the public. More clients and lawyers understand the facts about pre-settlement funding because of Aaron’s legal and financial service SEO mastery.
Aaron Winston is the author of A Word For The Wise. A Warning For The Stupid. Canons of Conduct, which is a book in poetry format. It consists of 35 unique canons. The book was published in 2023.

He keeps an academic approach to business that improves the consumer’s well-being. In early 2022, Aaron gained the Search Engine Optimization and the Google Ads LinkedIn skills assessment badges. He placed in the top 5% of those who took the SEO skills test assessment.
Aaron’s company slogans and lawsuit funding company name are registered trademarks of the United States Patent and Trademark Office. He has gained positive notoriety via interviews and case studies, which are a byproduct of his successes. Aaron R. Winston was featured in a smith.ai interview (2021) and a company growth case study (2022).

In 2023, Aaron and Express Legal Funding received accolades in a leading SEO author case study performed by the leading professionals at WordLift. The in-depth data presented in the pre-settlement funding SEO case study demonstrate why Aaron Winston maintains a high-author E-E-A-T. His original writing and helpful content continue to achieve unprecedented success and stand in their own class.

Aaron was born in Lubbock, TX, where he spent the first eight years of his life. Aaron attended Akiba Academy of Dallas, TX.

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