Getting money before your settlement: the lawsuit loan
Out of money while your claim drags on? Call before any lawsuit loan.
Call before I sign(833) 716-6705
We pick up 24/7, review your case free, and link you to a car accident lawyer paid only if you win.
A lawsuit loan pays you against a settlement you have not received yet. If you win, the funder takes its money and its fee first; if you lose, most contracts say you owe nothing.
How a lawsuit loan works
- You apply. The funder calls your lawyer and reads your case file.
- They offer a small part of what they think the case is worth.
- You and your lawyer sign. The lawyer agrees to pay the funder from the settlement.
- When the case settles, the funder is paid before you are.
Lawyers call this pre settlement funding. It is not a regular loan, so many state lending rules do not reach it.
What it really costs
Most contracts set the fee as a monthly rate, so a case that drags on costs much more. Some compound the fee; some add flat charges.
Take $3,000 with a payback of $5,500 at 12 months and $8,000 at 24.
The second year costs $2,500 more than the first. That payback joins the lawyer's fee and any Medicare repayment, which CMS collects from the settlement.
Who qualifies
- You have a lawyer on a contingency fee.
- The other driver's fault is clear.
- The other driver has enough insurance to pay.
- Your case is not already near its end.
Cheaper options
- A doctor who treats on a lien and waits for the settlement.
- Your own PIP or medical payments coverage, if you have it. See no-fault states.
- A quick partial payment for the car while the injury claim continues.
Lawsuit loan questions
Is it hard to get a lawsuit loan?
Not usually. The funder looks at your case and your lawyer, not your credit. Most will not fund you without a lawyer on the case.
Is it a good idea to get a settlement loan?
Only when the bills cannot wait and nothing cheaper works. The fee grows every month the case stays open, and it comes out of your settlement first.
Do I have to pay back pre settlement funding if I lose?
Most contracts say no. That is why the price is high. The word to look for in the contract is "non-recourse".
Can I get a car accident loan without my lawyer signing?
Few funders will. They need the lawyer to agree to pay them from the settlement.
What to do now
Call before I sign(833) 716-6705
We pick up 24/7, review your case free, and link you to a car accident lawyer paid only if you win.
The funding company gets paid out of your settlement first, so call before you sign anything that takes a cut. A lawyer may show you that you do not need the money at all. Most states give you two or three years to file, so call today for a free case review.