Post-settlement funding is a financial service crafted to provide plaintiffs with much-needed financial relief while they await the disbursement of their settlement.
Winning a legal case is a significant victory, but the prolonged wait for funds can be frustrating and financially straining.
This article delves into how post-settlement funding can ease financial burdens and provide timely support after your case settles, but before you receive your settlement check.
What Is Post-settlement Funding?
Post-settlement funding is a financial service that provides plaintiffs with a portion of their settlement before the settlement payout is officially disbursed. Unlike traditional loans, it is non-recourse, meaning repayment is only required if the settlement is successfully processed.
This type of legal funding is ideal for plaintiffs involved in personal injury, wrongful death, or employment disputes, providing quick financial relief for urgent needs like medical bills, daily living expenses, and emergencies during settlement delays.
Why Do Plaintiffs Need Post-settlement Funding?
Settlement disbursement delays can leave plaintiffs in a financial bind, as settlements often take months to process due to administrative backlogs. During this time, plaintiffs may face mounting financial pressures, such as:
- Medical Bills: Ongoing treatments or surgeries can add to the burden.
- Daily Living Expenses: Essentials like rent, utilities, and groceries don’t pause for settlements.
- Lost Income: Injuries or other case-related factors may prevent plaintiffs from working.
- Unexpected Emergencies: Financial surprises can arise, leaving little room to wait.
Accessing funds quickly through post-settlement funding helps bridge the gap, offering plaintiffs much-needed financial stability and peace of mind.
💸 Need financial relief?
🟢 Apply Now for Fast Funding Solutions from Express Legal Funding and take control of your financial situation today!
How Does Post-settlement Funding Work?
Post-settlement funding is designed to be a straightforward process, ensuring plaintiffs can access their settlement funds quickly and efficiently. Here’s a detailed look at the step-by-step process:
- Application: Submit Details of Your Case and Settlement
- Case Evaluation: The Funding Company Assesses the Settlement Amount and Timeline
- Approval: Receive an Offer for a Portion of Your Settlement
- Disbursement: Funds Are Advanced Directly to You
- Repayment: Settlement Proceeds Are Used to Pay Back the Funding
1. Application: Submit Details of Your Case and Settlement
The first step involves completing an application with a post-settlement funding company. During this stage, you’ll provide:
- Case Details: Information about the lawsuit, including the type of case (e.g., personal injury, medical malpractice).
- Settlement Agreement: Documentation proving that your case has been resolved and a settlement has been awarded.
- Attorney Contact Information: Your attorney’s contact details, as the funding company, will need to work closely with them.
Pro Tip: Most companies, including Express Legal Funding, offer a simple online application or the option to apply over the phone for convenience.
2. Case Evaluation: The Funding Company Assesses the Settlement Amount and Timeline
Once your application is submitted, the funding company evaluates your case to determine eligibility and the amount they can advance. Key factors evaluated include:
- The total settlement amount awarded.
- Any liens or obligations tied to the settlement (e.g., medical bills, attorney fees).
- The expected timeline for settlement disbursement.
Attorney Involvement: Your attorney plays a critical role during this step by providing necessary case documents and helping the funding company confirm the details of the settlement. This evaluation process is typically fast, with most companies completing it within 24–48 hours.
3. Approval: Receive an Offer for a Portion of Your Settlement
If your case meets the company’s criteria, you’ll receive an offer outlining key details about the funding. This offer typically includes:
- Advance Amount: A percentage of your settlement, usually based on the total award and any existing liens.
- Fees and Terms: A detailed breakdown of fees, interest (if applicable), and repayment terms.
Post-settlement Legal Funding Agreements
Along with the offer, you’ll receive a post-settlement funding agreement, which serves as the formal contract between you and the funding company. This agreement includes:
- The amount being advanced.
- The total repayment amount (including fees).
- Any applicable terms, such as repayment contingencies and timelines.
At this point, you’ll have the opportunity to:
- Review the Agreement: Take the time to read and fully understand the terms of the funding offer.
- Ask Questions: Transparency is key, and a trustworthy legal funding company like Express Legal Funding will provide clear explanations and address any concerns to ensure you feel confident about the agreement.
- Consult Your Attorney: Since your attorney will play a role in repayment, they can also help review the agreement for clarity.
4. Disbursement: Funds Are Advanced Directly to You
Once you accept the offer, the funding company disburses the agreed-upon amount to you.
- Fast Access: Most plaintiffs receive their funds within 24 hours of approval, with same-day disbursement possible in many cases.
- Flexible Use: The money can be used for any purpose, including paying overdue medical bills, covering living expenses like rent or utilities, and handling unexpected emergencies.
This immediate access to funds can alleviate the financial burden plaintiffs face while waiting for their full settlement payout.
5. Repayment: Settlement Proceeds Are Used to Pay Back the Funding
When your settlement is finally disbursed, repayment is handled directly between your lawyer and the funding company.
- How Repayment Works: Your lawyer distributes the settlement funds according to the agreed-upon terms, ensuring that the funding company is repaid first. Any remaining funds will then be sent to you.
- Risk-Free Guarantee: Since post-settlement funding is non-recourse if for any reason your settlement falls through, you owe nothing to the funding company.
✅ Learn about whether you are eligible for Guaranteed Pre-Settlement Funding
Example Scenario: Post-settlement Funding for a Car Accident Case
Case Summary: John was injured in a car accident and filed a personal injury claim against the at-fault driver. After months of medical treatment and his attorney negotiating with the at-fault driver’s car insurance company, John signed a settlement agreement for $150,000.
While this is a significant win, John has immediate financial needs he needs the final payout to pay for:
- His rent is overdue and is at risk of being evicted by his landlord.
- He has accrued a substantial credit card balance by relying on his credit card to cover living expenses, as he’s been unable to work due to his injuries.
- He needs money to pay for his child’s upcoming tuition payment.
Although the car accident settlement has been finalized, John learns from his attorney that the funds might take 2–3 months to process and disburse due to insurance settlement delays and other administrative processes.
Financial Breakdown of John’s Settlement Check Payout:
Before John receives any money from the settlement, the following deductions will occur:
- Attorney’s Fee: The attorney’s contingency fee is 40% of the settlement, which equals $60,000.
- Medical Liens: John’s medical providers agreed to reduce the liens to $20,000, which will also be deducted.
Remaining Settlement After Deductions:
$150,000 – $60,000 (attorney’s fees) – $20,000 (medical liens) = $70,000
Selects Post-settlement Funding as a Fast Financial Option
Post-settlement Funding: John contacts a post-settlement funding company, such as Express Legal Funding, to access part of his settlement early. The funding company evaluates his case and approves him for 20% of the total settlement, which amounts to $30,000. The repayment amount, including fees, is set at $37,500.
Step-by-Step Process:
- Application: John submits details of his case, including the signed settlement agreement. He provides his attorney’s contact information to facilitate the process.
- Evaluation: The funding company reviews John’s case and confirms the settlement amount, attorney’s fees, and lien reductions. They determined that John is eligible for up to 20% of his settlement.
- Approval and Disbursement: John accepts the funding offer. Within 24–48 hours, John receives $30,000 directly in his bank account.
How John Uses the Post-settlement Advance Funds: John uses the $30,000 to:
- Pay his overdue rent and cover three months of future rent.
- Pay his child’s school tuition payment in full.
- Cover his monthly expenses while waiting for the remainder of his settlement.
Repayment of Post-settlement Funding: When the insurance company disburses the full settlement amount, John’s attorney handles the repayment to the funding company directly.
- Settlement Check Amount Sent to Attorney’s Office: $150,000
- Deductions:
- Attorney’s Fees: $60,000
- Medical Liens: $20,000
- Post-settlement Funding Repayment: $37,500
Like traditional loans, the repayment amount is higher than the advance due to fees and interest associated with post-settlement funding. These fees compensate the funding company for the service provided and the time value of money advanced before the settlement payout. In John’s case:
- Advance Provided: $30,000
- Repayment Amount: $37,500 (includes $7,500 in fees for the funding service).
- Remaining Amount Paid to John: $150,000 – $60,000 – $20,000 – $37,500 = $32,500
Note: The specific fees charged can vary by funding company and are typically disclosed upfront during the approval process. Reputable companies, like Express Legal Funding, prioritize transparency, ensuring plaintiffs fully understand the terms before accepting funding.
Key Benefits of Post-settlement Funding for John:
- Immediate Relief: John was able to access $30,000 when he needed it most.
- Non-Recourse: If the settlement payment had fallen through (e.g., insurance bankruptcy), John wouldn’t have been obligated to repay the funding.
- Flexibility: The funding allowed him to cover urgent needs without waiting months for his portion of the settlement disbursement.
🚗 Got in a car accident and need financial relief? Apply for a Car Accident Loan Today.
How Is Post-settlement Funding Different from Pre-settlement Funding?
While pre-settlement funding provides financial assistance during an ongoing case, post-settlement funding is specifically for plaintiffs who have already reached a settlement but are waiting for their payout.
Both serve unique purposes and understanding these differences is crucial to selecting the right financial solution.
Post-settlement vs. Pre-settlement Legal Funding: Which Is Right For You?
Many plaintiffs may confuse post-settlement funding with pre-settlement funding. While both provide financial assistance, they are designed for different stages of the legal process. We lay out the comparison of the two financial tools in the infographic and data table below:
Comparison of Pre-Settlement and Post-Settlement Funding
| Aspect | Pre-Settlement Funding | Post-Settlement Funding |
|---|---|---|
| Primary Purpose | Financial relief for plaintiffs waiting for their case to resolve. | Financial relief for plaintiffs waiting for their settlement payout after their case is resolved. |
| Eligibility Requirements | Requires an ongoing claim with strong merit and high likelihood of financial recovery either through settlement or court award. | Requires a signed and finalized settlement agreement specifying the settlement amount. |
| Risk Comparison | Higher risk for funding companies due to uncertain case outcomes. | Lower risk, as repayment is tied to an already secured settlement. |
| Cost Comparison | Often has higher fees and interest rates due to the greater risk for the funding company. | Usually more affordable because the risk is lower for the funding company. |
| Approval Speed | May take longer due to case evaluation. | Typically faster since settlement terms are already established. |
| When to Choose Pre-Settlement or Post-Settlement Funding | Ideal for plaintiffs facing immediate financial strain during an ongoing case, such as covering medical bills, rent, or daily expenses while waiting for a legal resolution. | Best for plaintiffs who have secured a settlement but need access to funds quickly due to delays in disbursement or pressing financial obligations. |
Advantages of Post-settlement Funding
- Immediate Financial Relief: Access funds without waiting months for a lump sum settlement payout.
- No Credit Check: Approval is based on the settlement, not personal credit.
- Risk-Free: Payment is contingent on the settlement payout.
How Much Does Post-settlement Funding Cost?
The cost of post-settlement funding varies depending on the funding company, the size of the settlement, and the agreed-upon terms. At its core, the cost is typically structured as a percentage of the advance amount, often including fees and interest rates.
Since post-settlement funding is non-recourse, these costs compensate for the risk taken by the funding company and the cost of capital, as repayment is contingent upon the settlement being disbursed.
There is no risk of the client incurring personal debt when obtaining these funds as an advance on their already settled case.
Understanding the Cost Structure of Post-settlement Loans
- Advance Amount: The funding company provides a portion of your settlement upfront.
- Fees and Interest: The repayment amount typically includes a percentage-based fee or interest, which accrues until the settlement is disbursed.
- Repayment: The total amount repaid to the funding company includes the initial advance plus the agreed-upon fees.
What Factors Influence the Cost of Post-settlement Funding?
Factors that determine how much post-settlement funding will cost include:
- Settlement Amount: Larger settlements may qualify for lower rates.
- Funding Amount: Higher advances may come with slightly higher fees.
- Repayment Timeline: Shorter repayment periods typically result in lower total costs, as there will be less time for interest to accrue.
Considerations Before Applying
- Fees and Costs: Funding companies charge fees, which vary.
- Evaluate Necessity: Consider alternatives like personal savings or borrowing from a friend or family member.
- Transparency Matters: Choose reputable legal funding companies with clear terms. Express Legal Funding stands out for its transparency and customer service.
📖 Featured Reading: 15 Alternatives to Lawsuit Loans.
Who Is Eligible for Post-settlement Funding?
Plaintiffs with confirmed settlements in cases like personal injury, medical malpractice, employment discrimination, and product liability are eligible. Their eligibility also depends on the settlement size and expected disbursement timeline.
What Types of Cases Are Eligible for Post-settlement Funding?
Post-settlement funding is designed to assist plaintiffs in a variety of civil legal cases where a settlement has been reached, but the payout is delayed. Below are some of the most common types of cases eligible for post-settlement funding, with examples and reasons they qualify:
- Personal Injury Cases
- Examples: Car accidents, motorcycle accidents, trucking accidents, slip and fall injuries, dog bite injuries, premises liability claims.
- Why It Qualifies: These cases often involve significant medical bills and lost wages, and settlements may take time to process after agreements are reached.
- Medical Malpractice Cases
- Examples: Surgical errors, misdiagnosis or delayed diagnosis, birth injuries.
- Why It Qualifies: These settlements can be large and complex, often involving extended timelines for processing.
- Workers’ Compensation Claims
- Examples: Workplace injuries or occupational diseases.
- Why It Qualifies: Plaintiffs may need funds immediately to cover living expenses or medical costs while waiting for structured payments or lump-sum settlements.
- Employment Disputes
- Examples: Wrongful termination, workplace discrimination, sexual harassment claims.
- Why It Qualifies: Settlements in these cases often include back pay, future wages, or damages, which can take time to disburse.
- Product Liability Claims
- Examples: Defective consumer products, dangerous pharmaceuticals, defective medical devices (e.g., faulty knee replacements or the CPAP machines recalled by Philips).
- Why It Qualifies: These cases often involve negotiations with large corporations and delayed payouts.
- Mass Tort and Class Action Lawsuits
- Examples: Mass torts for defective drugs or medical devices, class actions for consumer fraud, or environmental harm.
- Why It Qualifies: These settlements are typically large and distributed in stages, leaving plaintiffs waiting for their share.
- Wrongful Death Claims
- Examples: Fatal car accidents, medical malpractice resulting in death, workplace fatalities.
- Why It Qualifies: Families often face significant financial hardships after the loss of a loved one, making immediate funding critical.
How to Check if Your Case Qualifies for a Post-Settlement Loan
If your case type isn’t listed, don’t worry—many types of settled claims may still qualify for post-settlement funding. Contact Express Legal Funding for a free consultation to discuss your unique situation.
Exceptions and Unusual Cases Affecting Eligibility:
While most plaintiffs with confirmed settlements are eligible for post-settlement funding, there are exceptions or unique circumstances that may affect eligibility for this type of legal funding option:
- Structured Settlements: Plaintiffs receiving their settlement through periodic payments (structured settlements) may have fewer options for post-settlement funding. In such cases, companies like J.G. Wentworth, which specialize in purchasing structured settlements, may be the primary option. These companies offer plaintiffs structured settlement advances in exchange for the rights to their future payments.
- Liens or Other Obligations: If the settlement is tied up in liens (e.g., medical bills, overdue child support liens), this could impact the amount of funding available.
- Small Settlements: Cases with very small settlement amounts might not qualify for funding if the anticipated repayment is insufficient to cover costs.
- Pending Appeals: If the settlement is being contested or under appeal, funding may not be available until the appeal is resolved.
If your situation is unique, contact a funding company like Express Legal Funding to discuss your options.
How to Apply for Post-settlement Funding
Gather necessary documents, such as the settlement agreement and lawyer information. Contact a litigation funding company like Express Legal Funding to start the process. The application process is typically straightforward and quick.
In Summary About Post-settlement Funding for Settled Cases
Post-settlement funding offers significant benefits for plaintiffs facing financial stress. Explore your options and make informed decisions. Apply for post-settlement funding today to get the financial relief you need.
Get the Financial Relief You Deserve with Express Legal Funding
Don’t let financial stress hold you back while waiting for your settlement payout. At Express Legal Funding, we specialize in providing fast, transparent, and risk-free post-settlement funding tailored to your needs.
Why Choose Us?
- Quick Approvals and Disbursement: Get your funds in as little as 24 hours.
- No Hidden Fees or Unfair Terms: Our process is 100% transparent.
- Risk-Free Funding: If your settlement falls through, you owe us nothing.
With Express Legal Funding, you can:
- Pay your bills and living expenses without delay.
- Focus on your recovery instead of worrying about finances.
- Regain your financial freedom while your settlement is processed.
Fill out the form below or call us at (888) 232-9223 to start your application. Our friendly team of lawsuit loan specialists are here to answer your questions and help you access the money you need—when you need it most.
Apply Now and Get Funded Fast Post-Settlement!
FAQs About Post-Settlement Funding
In this section we include answers to some of the most frequently researched questions and concepts people have about post-settlement funding:
How quickly can I receive funds through post-settlement funding?
Post-settlement funding is designed to provide fast financial relief. In most cases, plaintiffs can receive their funds within 24–48 hours after approval, and same-day disbursement is often possible with reputable companies like Express Legal Funding.
Is post-settlement funding considered a loan?
No, post-settlement funding is typically not classified as a loan. It is a non-recourse financial arrangement, meaning repayment is only required if the settlement is successfully disbursed. If the settlement falls through for any reason, plaintiffs are not obligated to repay the funding.
However, in some states, such as Missouri, Workers’ Compensation claims are non-assignable, and post-settlement funding for these cases must be structured as traditional loans to comply with state laws.
What happens if my settlement is delayed longer than expected?
If your settlement disbursement takes longer than anticipated, there are no additional penalties or fees added to your post-settlement funding agreement. The terms of repayment remain fixed, providing peace of mind as you wait for your settlement check.
How much of my settlement can I receive through post-settlement funding?
The amount you can receive typically depends on the size of your settlement and any outstanding liens or obligations. Most funding companies, like Express Legal Funding, advance a percentage of the total settlement—often up to 20–30%—while ensuring you retain a significant portion of your final payout.
Does applying for post-settlement funding affect my credit score?
No, applying for post-settlement funding does not affect your credit score. Approval is based on the details of your case and settlement, not your credit history. This makes it an accessible option for plaintiffs facing financial challenges.
