
If you have a pending lawsuit, you might be wondering: Can I get a loan while waiting for my settlement?
โ Yes, you can get financial assistance by borrowing money on a pending lawsuit, but itโs not technically a loan in most situations. Instead, itโs called pre-settlement funding or non-recourse lawsuit funding.
Unlike traditional loans, you donโt have to make monthly paymentsโand 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, weโll explain everything you need to know, including eligibility, funding amounts, pros and cons, and alternatives.
Disclaimer: Pre-settlement funding is not a traditional loan. Itโs a non-recourse cash advance, requiring no repayment only if you lose your case.
Can I Get a Loan on a Pending Lawsuit?
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 doesnโt require credit checks or monthly payments, and you only repay if you win your case.
๐ง 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 caseโs 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.
๐ 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 caseโnot your credit score, employment status, or income.
Do You Qualify? Hereโs 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.
3. Your lawsuit must have a potential settlement or judgment payout.
- The case must involve monetary compensation, typically from an insurance claim or a defendantโs 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
โ ๏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: Whatโs the Difference?
Many people search for “lawsuit loans,” but they donโt work the same way as traditional bank loans or personal loans. While both provide financial assistance, pre-settlement funding is a non-recourse cash advanceโnot 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 donโt want the burden of monthly payments or accumulating interest.
Pending Lawsuit Loans vs. Traditional Loans: Key Differences
Feature | Pending Lawsuit Loan | Traditional Loan |
---|---|---|
Repayment Requirement | Only if you win your case | Monthly payments required regardless of case outcome |
Credit Check? | No credit check needed | Credit check required |
Approval Based On? | Case strength & expected settlement value | Income, credit history, debt-to-income ratio |
Risk to You? | Noneโnon-recourse funding (no repayment if you lose) | Highโdebt must be repaid even if you lose your case |
Interest & Fees | Flat fee or capped rate | Interest keeps accruing over time |
Collateral Required? | No collateral needed | May 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 donโt 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:
- Case Evaluation: A legal funding company reviews your case.
- Advance Offer: If approved, you receive an advance based on your estimated settlement.
- No Repayment If You Lose: If your case isnโt successful, you owe nothingโunlike 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.
๐ Related Guide: Guaranteed Pre-settlement Funding: Eligibility & Approval
How Much Money Can You Get While Your Lawsuit Is Pending?
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.
๐๐ฅ Had a Car Crash but Canโt 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 advanceโbut this is usually limited to an additional 5-10% of your total estimated settlement.
๐ฐโ๏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 defendantโs insurance policy.
Bottom Line: If you have a strong case with clear liability, you may qualify for a higher funding amount with quick approvalโbut always borrow responsibly.
Pros and Cons of Pending Lawsuit Loans: What You Need to Know
Pro/Con | Details | Expanded Insight |
---|---|---|
โ๏ธ Pro | Immediate cash to cover medical bills, rent, and daily expenses. | Many plaintiffs struggle financially while their case is pendingโlawsuit funding provides a bridge until settlement. |
โ๏ธ Pro | No credit check or employment verification required. | Unlike bank loans, your credit score and job status do not impact eligibility. |
โ๏ธ Pro | Risk-free: You only repay if you win your case. | 100% non-recourseโif you lose, you owe nothing. No repayment obligation. |
โ Con | Higher costs than traditional loans due to funding fees. | Lawsuit funding isnโt cheapโbut many companies offer capped rates to prevent excessive costs. |
โ Con | Not regulated like traditional lending in most states, so choosing a reputable company is crucial. | Some funding companies charge hidden feesโalways choose a direct, licensed provider. |
โ Con | May 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
Hereโs how to secure financial assistance via a non-recourse pre-settlement loan while waiting for your lawsuit to settle:
- Apply Online or by Phone โ Submit an application with basic case details.
- Attorney Consultation and Case Review โ The funding company evaluates your case.
- Receive a Funding Offer โ Based on case strength, youโll get a cash advance proposal.
- 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
Alternative | How It Works | Pros | Cons |
---|---|---|---|
Negotiate a Payment Plan | Some creditors (e.g., medical providers, landlords, utility companies) may allow you to defer or reduce payments until you receive your settlement. | No interest or fees | Requires creditor approval; may not be available for all bills |
Personal Loans | Borrow from a bank, credit union, or online lender based on your credit score and income. | May have lower interest than lawsuit funding | Requires credit check and monthly payments |
Attorney Lien Agreement | Some lawyers allow clients to delay legal fees until the case settles. | No upfront legal costs | Not all attorneys offer this option |
Borrow from Friends or Family | A private loan from trusted relatives can help cover urgent expenses. | No interest or application process | Can 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.
๐ Important Note: Unlike pre-settlement funding, all these alternatives require repayment regardless of your case outcomeโwhereas lawsuit funding is non-recourse (you owe nothing if you lose).
๐ Related Guide: 15 Alternatives to Lawsuit Loans: Pros, Cons, & How to Apply
How to Choose a Reputable Lawsuit 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, hereโs 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?
โ Tip: Always consult with your attorney and consider comparing multiple offers before signing any funding agreement.
๐ 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
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. Itโs best to only borrow whatโs 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?
๐ 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, itโs not a traditional loanโitโs a non-recourse cash advance against your future settlement.
Key Takeaways Before You Decide:
- Only borrow whatโs 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 structureโyou only pay back if you win, but fees can add up.
- Consider alternative options if pre-settlement funding isnโt the best fit for your situation.
- Consult your attorney before making a decision.
Why Choose Express Legal Funding?
At Express Legal Funding, we understand how difficult it can be to wait for a lawsuit settlement while struggling with bills. Thatโs why we provide fast, affordable, and risk-free pre-settlement funding to help you cover medical bills, rent, and daily expensesโwithout monthly payments or upfront costs.
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 winโrisk-free funding
Why Work With Us?
- Lightning-fast approvalsโfunds in as little as 24 hours
- Honest & transparent pricingโyou keep more of your settlement
- Personalized serviceโour team works directly with your attorney
๐ต Need fast financial relief while your lawsuit is pending? Apply today and get the cash you need to stay afloat while your case settles!