Pre-Settlement Lawsuit Financing


If you are a plaintiff in a lawsuit that you and your Attorney believe is a good case and is relatively certain to be found in your favor, it may be possible for you to get an advance on the proceeds of the settlement. There are many companies that are willing to advance funds to plaintiffs who have good cases and it appears they will win their lawsuits.

Very often, the defendants in lawsuits will drag their feet in reaching a settlement in the hope that the plaintiff will become desperate enough to accept a low figure as the final offer. Pre-settlement lawsuit funding often allows the plaintiff to wait for a more acceptable and fair offer from the defendant since they now are able to feed their family, pay the mortgage etc.

Although you may be introduced to the concept of pre-settlement lawsuit financing by a non-lawyer consultant, the relationship between your Attorney and the funding company will be the most important element of the transaction. The funding companies are very much aware of the confidential relationship between Attorney and Client and will do what is necessary to maintain that relationship, but the funders will need certain confidential information in order to determine if your cause is one they want to become part of. You will be asked to agree to the release of that confidential information and can, at any time, refuse its release, keeping in mind that the funding will likely not be possible without your full cooperation and the full cooperation from your Attorney.

The best part of pre-settlement lawsuit financing is that the funding source takes all the risk. If it advances you funds on a lawsuit that you eventually lose, you won’t have to pay any of your advance back to the funding source. The money is yours to keep, regardless of the success of the lawsuit. For that reason, however, the funder will be very careful to select to fund only those lawsuits it expects to be won.



Click here to visit our FAQ section on Pre-Settlement Lawsuit Financing.