Frequently Asked Questions (FAQs) Directory

Find answers to the most common questions about legal funding, lawsuits, and repayment.

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Lawsuit Loan FAQs

What Is a Lawsuit Loan & How Does the Process Work?

A lawsuit loan, also called a pre-settlement cash advance, is a form of legal funding that helps plaintiffs pay bills and expenses while waiting for their case to settle. Unlike traditional loans, they carry no personal liability because repayment only comes from your settlement or court judgment if you win. The process is simple: apply, your attorney provides case details, the funding company reviews your claim, and if approved, money is delivered—often within 24 hours.

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Legal Funding Basics FAQs

What Is Non-Recourse Legal Funding?

Non-recourse legal funding is a risk-free cash advance provided to plaintiffs during ongoing litigation. It requires no collateral and is only repaid if the case results in a settlement or favorable judgment. If the lawsuit is unsuccessful, the plaintiff owes nothing, making it a safe and flexible financial solution for those awaiting compensation.

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Do I Need a Lawyer to Get Legal Funding?

Yes, you need an attorney to qualify for legal funding. Pre-settlement funding companies, including Express Legal Funding, require that you have legal representation from a contingency-fee attorney. Without a lawyer, your application can’t be approved, as attorneys play a crucial role in verifying your case, ensuring legal compliance, and protecting your interests.

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Does Pre-Settlement Funding Require Monthly Payments?

No, pre-settlement funding does not require monthly payments. Unlike traditional loans, repayment is only made from the settlement proceeds once your case is resolved. This means you can access funds without the stress of monthly bills, allowing you to focus on your legal proceedings without financial pressure.

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What Is Legal Funding and How Does It Work?

Legal funding is a non-recourse cash advance that allows plaintiffs with pending legal claims to access part of their expected settlement or court award before the case is resolved. Repayment is only required if the plaintiff wins or settles, making it a risk-free financial solution during litigation.

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How Much Does Pre-Settlement Legal Funding Cost?

Pre-settlement legal funding typically costs 2% to 4% per month. The total repayment depends on the case type, duration, and whether the interest is simple or compounding. Choosing a provider with capped rates and transparent terms, like Express Legal Funding, can help reduce costs and protect more of your settlement.

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Do I Have to Pay Taxes on Pre-Settlement Legal Funding?

No, you generally do not have to pay taxes on pre-settlement legal funding, especially in personal injury cases. It is treated as a non-recourse advance on your future settlement, meaning you only repay it if you win. Because it’s not considered income, the IRS does not include it in your gross income, and you don’t need to report it on your tax return. This makes pre-settlement funding a tax-free way to access money during a pending lawsuit.

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Do Pre-Settlement Funding Companies Require Credit Checks?
No. Reputable pre-settlement funding companies, including Express Legal Funding, do not require a credit check. Approval is based only on the strength and potential value of your lawsuit, not your credit history, income, or job status. This means plaintiffs with poor or no credit can still get funding without harming their credit report.
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What Are the Pros and Cons of Pre-Settlement Funding?

The main pros of pre-settlement funding are quick access to cash while a lawsuit is pending and repayment only if the case is won. The main cons are the costs, since fees and interest can reduce the final settlement that a plaintiff keeps. For this reason, pre-settlement funding is best used for essential expenses rather than discretionary spending.

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How Does the Pre-Settlement Funding Process Work?

The pre-settlement funding process allows plaintiffs to receive a cash advance while their lawsuit is still pending. To apply, you provide case details and your attorney’s information, which the funding company reviews with supporting documents. Underwriters then assess liability, damages, and the likelihood of recovery before making an approval decision. If approved, funds are usually disbursed within 24 to 48 hours, and repayment is only required if you win or settle, since pre-settlement funding is non-recourse.

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Legal Funding FAQ by Case Type Directories

Explore our legal funding FAQ hubs organized by case type. Each directory links to a set of frequently asked questions tailored to your unique situation:

Personal Injury
Learn about eligibility, repayment terms, and how pre-settlement funding works for personal injury
Car Accident
FAQS focused on motor vehicle accident lawsuits. including delays from insurers and fault-related issues
Medical Malparatice
Common questions about lawsuit loans for surgical mistakes, misdiagnoses, and hospital negligence
Nursing Home Abuse
Resources for families seeking legal funding after elder neglect, mistreatement, or wrongful care imes
Workers' Compensation
Legal funding FAQs for workplace injuries involving third-party claims outside of standard workers' comp.
Wrongful Death
Answers for surviving family members pursuing

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