Can I Get a Loan on a Pending Lawsuit? Step-by-Step Guide

Updated: February 7, 2025 9:25 am
โ€ข
10 min read
Aaron Winston, Strategy Director at Express Legal Funding.
Aaron R. Winston
Author & Strategy Director

Keypoints

The blog post answers the question: “Can I get a loan on a pending lawsuit?” by explaining the concept of pre-settlement funding. This type of financial assistance provides non-recourse cash advances to plaintiffs awaiting case resolution, allowing them to cover essential expenses like rent and medical bills. Repayment is only required if the lawsuit results in a favorable settlement or verdict. To qualify, applicants must have a valid legal case with strong settlement potential and be represented by an attorney. The funding company evaluates the case, collaborates with the attorney, and, upon approval, funds can be disbursed within 24 hours. This financial relief helps plaintiffs avoid settling early due to financial pressure.

Keypoints

  • Can I get a loan on a pending lawsuit? Yes, through pre-settlement funding.
  • Pre-settlement funding provides immediate cash advances during an ongoing lawsuit.
  • Repayment is only required if the case is won or settled favorably.
  • Eligibility requires a valid lawsuit, strong settlement potential, and attorney representation.
  • Application involves case evaluation and collaboration with the applicant’s attorney.
  • Funds can be available within 24 hours after approval.

Content Metada

Title:
Can I Get a Loan on a Pending Lawsuit? Step-by-Step Guide
Thumbnail:
Can I Get a Loan on a Pending Lawsuit: A legal funding consultant explaining lawsuit loan options to a plaintiff in a law office.
Author:
Aaron R. Winston
Published Date:
February 2, 2025
Last Updated Date:
February 7, 2025 9:25 am
Publisher:
Express Legal Funding
Copyright Owner:
© Unkown Entity Holdings, LLC

Content Context

Primary Content Category:
Finance > Lending (Confidence: 0.90)
Secondary Content Category:
Law & Government > Legal (Confidence: 0.85)
Relevant Keywords:
lawsuit loan, pre-settlement funding, legal funding, settlement loan, litigation funding, lawsuit cash advance
Relevant Hashtags:
#LawsuitLoan, #LegalFunding, #PreSettlementFunding
Additional Insight:

This page discusses lawsuit loans, also known as pre-settlement funding. The target audience is individuals involved in lawsuits, particularly personal injury cases, who need immediate financial assistance. A key trend in this area is the increasing regulation of the lawsuit loan industry.

Can I Get a Loan on a Pending Lawsuit: A legal funding consultant explaining lawsuit loan options to a plaintiff in a law office.

If you have a pending lawsuit, you might be wondering: Can I get a loan while waiting for my settlement?

โœ… Yes, you can get financial assistance by borrowing money on a pending lawsuit, but itโ€™s not technically a loan in most situations. Instead, itโ€™s called pre-settlement funding or non-recourse lawsuit funding.

Unlike traditional loans, you donโ€™t have to make monthly paymentsโ€”and you only repay if you settle or win your case.

Understanding how this type of risk-free lawsuit funding works is crucial before applying, as it differs significantly from conventional loans. 

In this guide, weโ€™ll explain everything you need to know, including eligibility, funding amounts, pros and cons, and alternatives.

Infographic showing key requirements to qualify for pre-settlement funding, including having a legal claim, a contingency lawyer, and a potential settlement.
This infographic highlights the key qualifications for a pending lawsuit loan. Learn the essential requirements to qualify for pre-settlement funding, including having a valid legal claim, hiring a contingency fee attorney, and demonstrating potential for a financial settlement.

Disclaimer: Pre-settlement funding is not a traditional loan. Itโ€™s a non-recourse cash advance, requiring no repayment only if you lose your case.

Can I Get a Loan on a Pending Lawsuit?

A smiling woman holding stacks of cash in a courtroom, symbolizing financial relief through a lawsuit loan. Behind her, a lawyer and a judge.

Yes, getting a loan on your pending lawsuit settlement is possible. It’s technically not a loan. Instead, this type of financial assistance is called pre-settlement funding or non-recourse lawsuit funding.

Unlike traditional loans, pre-settlement funding doesnโ€™t require credit checks or monthly payments, and you only repay if you win your case.

๐Ÿง Did you know there are multiple types of legal funding? Learn about your options in our guide: What Are the Types of Legal Funding?

Key Takeaways About Pending Lawsuit Loans:

  • Risk-Free: No repayment is required if you lose your lawsuit.
  • Fast Access to Cash: Funds can be available within 24 hours of approval.
  • No Credit or Employment Check: Approval is based on your caseโ€™s strength.
  • Typical Funding Amount: 10-20% of your expected settlement.
  • Bottom Line: If you need financial relief while waiting for your settlement, pre-settlement funding can provide the cash you need without the risk of traditional loans.
A golden scale balancing stacks of cash in a law office, representing lawsuit funding options for a pending lawsuit.

๐Ÿ‘‰ Apply Now for Risk-Free Pre-Settlement Funding

How to Qualify for a Loan on Your Lawsuit Settlement?

If you’re considering getting a loan on your pending lawsuit settlement, you may qualify for pre-settlement funding but eligibility is different from traditional loans. Unlike bank loans, approval is based on the strength of your caseโ€”not your credit score, employment status, or income.

Do You Qualify? Hereโ€™s What You Need:
To get pre-settlement funding, you must meet these key requirements:

Who Qualifies for a Pending Lawsuit Loan? Key Requirements

1. You must have a pending lawsuit with a strong chance of success.

  • The case should demonstrate clear liability and damages (e.g., medical bills, lost wages, pain and suffering).
  • Cases with strong evidence and solid legal backing are more likely to qualify for funding.

2. You must be represented by an attorney on a contingency fee basis.

  • Your lawyer must agree to work with the legal funding company.
  • The attorney must handle the case on contingency, meaning they only get paid if you win or settle.
A confident male and female lawyer standing in a courtroom, representing legal funding approval for plaintiffs seeking a lawsuit loan.

3. Your lawsuit must have a potential settlement or judgment payout.

  • The case must involve monetary compensation, typically from an insurance claim or a defendantโ€™s assets.
  • Cases with a history of similar high-value settlements may qualify for larger funding amounts.

What Types of Cases Qualify for a Pending Lawsuit Loan?

Pending lawsuit loans are available for various types of personal injury and lawsuits, including:

  • Car Accidents and Truck Accidents
  • Slip and Fall (Premises Liability) Cases
  • Medical Malpractice Cases
  • Wrongful Death Cases
  • Workersโ€™ Compensation Claims
  • Police Misconduct Civil Lawsuits
  • Product Liability Lawsuits
  • Dog Bite Injury Lawsuits
  • Nursing Home Abuse Lawsuits
  • Employment Discrimination and Wrongful Termination

โš ๏ธ Factors That May Affect Your Funding Approval

Not all lawsuits qualify for funding. Your approval may be impacted by:

  • Disputes over liability: If the defendant contests fault, the case may be riskier for funding companies.
  • Length of time before settlement: Cases expected to take several years to resolve may be eligible for smaller advances.
  • Attorney responsiveness: If your lawyer does not communicate with the funding company, your application may be delayed or denied.

Pending Lawsuit Loans vs. Traditional Loans: Whatโ€™s the Difference?

Many people search for “lawsuit loans,” but they donโ€™t work the same way as traditional bank loans or personal loans. While both provide financial assistance, pre-settlement funding is a non-recourse cash advanceโ€”not a loan in the conventional sense.

Unlike traditional loans, where you must repay the lender no matter what, pre-settlement funding only requires repayment if you win or settle your case. This makes it a low-risk option for plaintiffs who need cash but donโ€™t want the burden of monthly payments or accumulating interest.

Pending Lawsuit Loans vs. Traditional Loans: Key Differences

This table compares pending lawsuit loans with traditional loans, highlighting key factors such as repayment terms, credit checks, and financial risks. Learn how pre-settlement funding provides a risk-free alternative to conventional lending options.
Comparison of Pending Lawsuit Loans and Traditional Loans
FeaturePending Lawsuit LoanTraditional Loan
Repayment RequirementOnly if you win your caseMonthly payments required regardless of case outcome
Credit Check?No credit check neededCredit check required
Approval Based On?Case strength & expected settlement valueIncome, credit history, debt-to-income ratio
Risk to You?Noneโ€”non-recourse funding (no repayment if you lose)Highโ€”debt must be repaid even if you lose your case
Interest & FeesFlat fee or capped rateInterest keeps accruing over time
Collateral Required?No collateral neededMay require collateral (e.g., home, car, or personal assets)

 

Key Takeaways: How Pending Lawsuit Loans Differ from Traditional Loans

  • Pre-settlement funding is designed for plaintiffs who need cash now but donโ€™t want to take on personal debt.
  • Unlike traditional loans, there are no monthly payments, no credit checks, and no risk if you lose your case.
  • Considering a lawsuit loan? Pre-settlement funding may be the better option. 

Apply today and get risk-free financial assistance while waiting for your case to settle!

How Pre-Settlement Funding Works:

After you apply:

  1. Case Evaluation: A legal funding company reviews your case.
  2. Advance Offer: If approved, you receive an advance based on your estimated settlement.
  3. No Repayment If You Lose: If your case isnโ€™t successful, you owe nothingโ€”unlike traditional loans, where you must repay no matter what. It’s a type of non-recourse loan. Repayment is contingent upon the existence of case proceeds.

๐Ÿ”— Related Guide: Guaranteed Pre-settlement Funding: Eligibility & Approval

How Much Money Can You Get While Your Lawsuit Is Pending?

A financial gauge showing lawsuit funding approval strength in a legal office.

The amount of pre-settlement funding you can receive depends on several key factors, including the expected settlement amount, case strength, and insurance policy limits. While every case is unique, most legal funding companies offer 10-20% of your estimated settlement value as an advance.

Example Scenario:

  • Case Type: Car accident
  • Injury Severity: Moderate (fractures, extended medical treatment)
  • Estimated Settlement: $80,000
  • Likely Pre-Settlement Funding Range: $8,000 – $16,000

In some cases, if an insurance company is known for delaying payouts or offering lower settlements, funding companies may adjust the advance amount to reduce risk.

๐Ÿš—๐Ÿ’ฅ Had a Car Crash but Canโ€™t Afford to Wait for Your Settlement? Get Financial Relief with a Car Accident Loan

Can You Get More Than One Advance on a Pending Lawsuit?

Yes, but multiple advances can significantly reduce your final settlement payout. If you need additional funds, some legal funding companies may offer a second or third advanceโ€”but this is usually limited to an additional 5-10% of your total estimated settlement.

A worried man at a kitchen table with overdue bills, highlighting financial stress before lawsuit settlement.

๐Ÿ’ฐโš–๏ธ Pro Tip: Only borrow what you truly need to cover essential expenses like medical bills, rent, and daily living costs. Taking more funding than necessary increases the amount owed to the legal funding company when your case settles, reducing your final payout.

How Quickly Can You Receive a Pending Lawsuit Loan?

Pre-settlement funding typically takes 24-48 hours.

Most lawsuit funding companies approve applications within 24-48 hours of receiving the necessary information from your attorney. Once approved, the funds are usually disbursed on the same day. However, the process can take longer if:

  • Your attorney is slow to respond to the funding company.
  • Your case requires additional review due to complexity.
  • The funding company needs additional documentation about the defendantโ€™s insurance policy.

Bottom Line: If you have a strong case with clear liability, you may qualify for a higher funding amount with quick approvalโ€”but always borrow responsibly.

Pros and Cons of Pending Lawsuit Loans: What You Need to Know

Wondering if a pending lawsuit loan is the right choice for you? This table highlights the key pros and cons, including access to fast cash, risk-free repayment, potential settlement reductions, and costs. Learn how pre-settlement funding can help plaintiffs cover essential expenses while waiting for a settlement.
A breakdown of the key advantages and disadvantages of pending lawsuit loans, including repayment terms, eligibility, and financial risks.
Pro/ConDetailsExpanded Insight
โœ”๏ธ ProImmediate cash to cover medical bills, rent, and daily expenses.Many plaintiffs struggle financially while their case is pendingโ€”lawsuit funding provides a bridge until settlement.
โœ”๏ธ ProNo credit check or employment verification required.Unlike bank loans, your credit score and job status do not impact eligibility.
โœ”๏ธ ProRisk-free: You only repay if you win your case.100% non-recourseโ€”if you lose, you owe nothing. No repayment obligation.
โŒ ConHigher costs than traditional loans due to funding fees.Lawsuit funding isnโ€™t cheapโ€”but many companies offer capped rates to prevent excessive costs.
โŒ ConNot regulated like traditional lending in most states, so choosing a reputable company is crucial.Some funding companies charge hidden feesโ€”always choose a direct, licensed provider.
โŒ ConMay reduce your final settlement payout if too much funding is taken.Borrowing more than needed can significantly cut into your final compensation.

Step-by-Step Guide: How to Get a Loan on a Pending Lawsuit

A man on the phone smiling on a porch, symbolizing financial relief after receiving lawsuit funding during a pending legal claim.

Hereโ€™s how to secure financial assistance via a non-recourse pre-settlement loan while waiting for your lawsuit to settle:

  1. Apply Online or by Phone โ€“ Submit an application with basic case details.
  2. Attorney Consultation and Case Review โ€“ The funding company evaluates your case.
  3. Receive a Funding Offer โ€“ Based on case strength, youโ€™ll get a cash advance proposal.
  4. Get Funds Within 24 Hours โ€“ Once approved, money is sent to you quickly.

Alternatives to Getting a Lawsuit Loan from Your Pending Case

If you’re hesitant about taking pre-settlement funding, consider these alternatives for financial relief while your case is pending.

Best Alternatives to Pending Lawsuit Loans: Financial Options for Plaintiffs

Considering alternatives to pending lawsuit funding? This table outlines the best financial options available, including personal loans, negotiating payment plans, attorney lien agreements, and borrowing from family or friends. Learn how these alternatives compare to lawsuit loans and which option might be the best fit for your financial situation.
A comparison of alternative financial options to pending lawsuit loans, including personal loans, payment plans, attorney liens, and other funding sources.
AlternativeHow It WorksProsCons
Negotiate a Payment PlanSome creditors (e.g., medical providers, landlords, utility companies) may allow you to defer or reduce payments until you receive your settlement.No interest or feesRequires creditor approval; may not be available for all bills
Personal LoansBorrow from a bank, credit union, or online lender based on your credit score and income.May have lower interest than lawsuit fundingRequires credit check and monthly payments
Attorney Lien AgreementSome lawyers allow clients to delay legal fees until the case settles.No upfront legal costsNot all attorneys offer this option
Borrow from Friends or FamilyA private loan from trusted relatives can help cover urgent expenses.No interest or application processCan strain relationships if repayment is delayed

Best Alternative for You?

  • If your biggest concern is medical debt, negotiating a payment plan may be ideal.
  • If you qualify for a low-interest personal loan, it might be a cheaper option.
  • If you only need to cover legal fees, an attorney lien agreement can help.

๐Ÿ“Œ Important Note: Unlike pre-settlement funding, all these alternatives require repayment regardless of your case outcomeโ€”whereas lawsuit funding is non-recourse (you owe nothing if you lose).

๐Ÿ”— Related Guide: 15 Alternatives to Lawsuit Loans: Pros, Cons, & How to Apply

How to Choose a Reputable Lawsuit Funding Company

A legal funding representative shakes hands with an attorney in a law office, indicating securing a lawsuit loan from a reputable funding company.

Just like in any industry, not all lawsuit funding companies operate with honesty and transparency. To ensure you receive the best and most reliable lawsuit loan while your case is pending, hereโ€™s what to look for:

  • Transparent Fee Structure โ€“ Avoid companies with hidden fees or high compounding interest.
  • Direct Funders vs. Brokers โ€“ Direct funders usually offer better rates with no middleman fees.

Key Questions to Ask Before Signing a Legal Funding Contract:

  • How is the funding fee structured?
  • Are there hidden fees?
  • What happens if my case takes longer than expected?

โš  Tip: Always consult with your attorney and consider comparing multiple offers before signing any funding agreement.

๐Ÿ”Ž Learn how to identify a legal funding company you can trust in our guide: How to Choose a Trustworthy Legal Funding Company?

FAQs About Lawsuit Loans and Pre-Settlement Funding

A courtroom scene with stacks of cash and a glowing FAQ sign above law books.

Do lawsuit funding companies charge interest?

No, lawsuit funding is not a traditional loan with interest. However, most companies charge flat fees or monthly rate, which can vary based on the case duration.

Can I apply for multiple pre-settlement advances?

Yes, you can apply for more than one funding advance, but taking multiple advances reduces your final settlement payout. Itโ€™s best to only borrow whatโ€™s necessary to avoid excessive fees.

What happens if I lose my case?

If you lose your case, you owe nothing. Pre-settlement funding is non-recourse, meaning repayment is only required if you win or settle.

 How long does it take to receive lawsuit funding?

๐Ÿ“… Most funding approvals happen within 24-48 hours, and funds are typically sent on the same day of approval.

Is a Pending Lawsuit Loan Right for You?

Pre-settlement funding can be a lifeline if you’re struggling with financial burdens while waiting for your case to settle. However, itโ€™s not a traditional loanโ€”itโ€™s a non-recourse cash advance against your future settlement.

A plaintiff consulting with a lawyer about pending lawsuit funding options at a legal office.

Key Takeaways Before You Decide:

  • Only borrow whatโ€™s necessary to cover essential expenses like rent, medical bills, and daily costs.
  • Compare lawsuit funding companies to avoid excessive fees or predatory terms.
  • Understand the repayment structureโ€”you only pay back if you win, but fees can add up.
  • Consider alternative options if pre-settlement funding isnโ€™t the best fit for your situation.
  • Consult your attorney before making a decision.

At Express Legal Funding, we understand how difficult it can be to wait for a lawsuit settlement while struggling with bills. Thatโ€™s why we provide fast, affordable, and risk-free pre-settlement funding to help you cover medical bills, rent, and daily expensesโ€”without monthly payments or upfront costs.

A legal funding representative handing a lawsuit loan advance to a client outside on a sunny day symbolizes financial relief during a legal claim.

Unlike traditional lawsuit loan companies, we are a direct legal funding provider, not a broker. That means:

  • No hidden fees or middleman markups
  • No credit checks or employment verification
  • You only repay if you winโ€”risk-free funding

Why Work With Us?

  • Lightning-fast approvalsโ€”funds in as little as 24 hours
  • Honest & transparent pricingโ€”you keep more of your settlement
  • Personalized serviceโ€”our team works directly with your attorney

๐Ÿ’ต Need fast financial relief while your lawsuit is pending? Apply today and get the cash you need to stay afloat while your case settles!

Apply for a Loan on Your Pending Lawsuit Today

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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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