Your Lawsuit Financing Options: All About Borrowing Against a Pending Case & Selling Your Structured Settlement


    Getting Paid Now...

    Let's face it. When you need money now (if you are struggling to pay your bills, or simply could use the money faster) the courts can take too long to provide rightful recovery. If you have a pending injury lawsuit you may qualify for pre-settlement lawsuit loan, which can provide financial relief and help you avoid having to settle too early.

    If your case has already been won, you can sell your structured settlement in order to get money sooner. We discuss the legal funding process, and some resources to help you get paid now.

    • Avoid settling too early for less than you deserve
    • Find out the cases which qualify for pre lawsuit lending
    • Selling structured settlements explained & where to do it

    Pre-Settlement Loans: How it Works

    The unfortunate truth is, accident injury claims don't often result in fast recovery for victims.

    Litigation can take years to be resolved. Many insurance companies and defendants' attorneys attempt to drag cases out for as long as possible in the hopes that you will settle for a lower amount of compensation. They know that with financial pressure mounting, you may be tempted to make a hasty decision, and settle for less than you may deserve.

    While your case is dragging on, you still have your daily living expenses, medical bills, and lost wages to contend with, which can create an overwhelming financial burden.

    The first thing most people need to understand is that lawsuit funding is not a loan, in the traditional sense.

    When you take out a traditional loan, you are required to pay it back in full with interest. Plus, regular payments must be made on a loan, typically on a monthly basis.

    A lawsuit settlement advance, on the other hand, differs in that there are no monthly payments. In fact, there are no payments required at all until you receive your settlement. The lenders are most concerned with if you have a winning case when they determine eligibility. If you lose the case and don't receive compensation, you are not required to repay the money.

    Pre-settlement lending provides you financial relief, buying you and your attorney the time to fight for the fair recovery you deserve. You will be required to have an attorney to qualify and have suffered a personal injury resulting in a high likelihood of a financial settlement being reached or jury award.

    The lender will discuss the details of your case with your attorney, and if your case qualifies, you funding will be approved, the contracts signed, and your money will be funded.


    Does My Case Qualify For Advance Settlement Funding?

    Any person who is planning on filing a lawsuit and is represented by an attorney or any person who has already filed a lawsuit and is awaiting trial or the final settlement of their case can apply for a pre-lawsuit funding.

    However, not all cases qualify. Applications are evaluated individually on the legal merits of your case, and the likelihood of your winning settlement compensation. Most commonly eligible for pre-lawsuit loans include cases involving personal injuries, wrongful death and mass tort.

    If you have a potential lawsuit and would like to find out if it qualifies for a lawsuit advance, we can help connect you with a reputable lender.

    The following list details cases which typically qualify for settlement advance consideration, depending on the unique details of your lawsuit - though each financial institution will have their own policy:

    Auto Accidents
    Personal Injury Cases
    Dog Bites
    Medical Malpractice Cases
    Pedestrian Injury
    Pharmaceutical and Drug Injury Lawsuits
    Premises Liability
    Products Liability
    Slip and Fall Lawsuits
    Wrongful Death
    Boating Accidents
    Railroad and Aviation Accidents
    Police Brutality Cases
    Labor and Employment Disputes
    Elder Care or Nursing Home Abuse

    A settlement claim advance provides you as plaintiff financial assistance while you are wait for the fair outcome in your case. Removing your financial pressures buys your attorneys additional time to build a stronger case, increasing the chance of success and a larger settlement in the end.

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    pre-settlement financing pros-cons

    Pre-Settlement Funding Considerations: Pros & Cons

    As is the case with most financial transactions, there are both positives and negatives associated with lawsuit loans.


    • Allows you to receive cash quickly and when you need it most. Pre-funding can save you endless amounts of financial stress. It can also help you avoid settling for much less in your lawsuit simply because you are desperate for cash and need a quick resolution. A lawsuit advance is the quickest way to avoid falling behind on bills and other financial obligations while you are awaiting the results of your case as it progresses through the court system.
    • Funds are approved quickly. Once the lender receives your application they will typically make a decision within 48 hours. The proposed fees and terms of your funding agreement and if you and your lawyer approve of the terms, your money can be funded within 24 hours.* Can vary by lender.
    • There is no risk involved with a lawsuit pre-settlement advance. If you lose your case and don't receive financial compensation settlement you are not obligated to pay back any part of the money advanced.
    • Few requirements. To qualify for the money you need a potentially successful lawsui. There are no credit checks, no employment checks and no background checks or any kind.


    • Higher repayment rates. The money isn't free, upon winning your case the agreed amount will be deducted from your settlement. The interest rate charged will vary for each case, but in general the rates are higher than bank loan rates.
    • Funds aren't limitless. Again, each case is individually evaluated, but in general you will not receive more than 10 percent of the anticipated settlement amount.

    For many people, the pros outweigh the cons. But the most important thing is to review the terms and conditions for your pre-compensation funding agreement and ensure that they are acceptable to you. Discuss the terms with your lawyer and get feedback to help you make a decision that is the best fit for your circumstances.

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    Already Have a Structured Settlement?

    If your litigation has already reached a conclusion and you were compensated via a structured settlement, you have the option of selling it for a lump sum now instead of receiving periodic payments for years to come.

    A number of financial institutions are willing to buyout your structured settlement annuity. It's your money, the company simply pays you money now in exchange for the scheduled payments and longer term gain. Some of the better known companies who you can sell your structured settlement include:

    • Peachtree Settlement Funding
    • J.G. Wentworth (From The Commercial)
    • Oasis Financial
      ... To Name Just a Few

    Unlike pre-settlement funding, eligibility will depend primarily on your structured settlement agreement. The type of case which led to your recovery isn't important - though many lenders have a minimum amount requirement ($20,000 for example). You don't need to be represented by an attorney to sell your settlement and the funding companies only want to know the details of your settlement agreement in order to make an offer.

    Most lenders offer you the ability to sell just a few payments of your annuity, or you can sell the entire structured settlement in one go to cash out now. After you apply, you will be presented with a quote.

    If you choose to sell based on their offer, you sign the contracts and can usually expect to receive your money within 45 days of accepting your settlement buyout offer.

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    selling structured settlements pros-cons

    Selling Structured Settlement Considerations: Pros & Cons

    The following factors should be kept in mind when you are deciding whether or not to accept cash for structured settlements.


    • Immediate payout. Selling your annuity will allow you to throw away the periodic payment plan and get money now. Cash in hand, rather than being locked behind your payout schedule, free for you to use it how you wish.
    • Easy Qualification Process. You don't have to worry about strict eligibility requirements or whether your case qualifies. If you have a structured settlement large enough to make it worth while to the funding companies, you will be able to get a quote.
    • Multiple Structured Settlement Companies Compete. Your annuity represents a good investment for the lawsuit funding companies who buy such instruments. They compete vigorously for your business - its fast & easy to compare legal settlement buyout quotes.
    • Flexible Options. You don't have to sell your entire settlement. You can choose to sell off a certain number of payoff years, receive monthly payments, get paid all at once. You can decide what is best for your family's immediate financial needs and customize a compromise for both short and long term.


    • Costs. Cashing out a structured settlement results in getting paid less overall than you were awarded. This is the motivation for the funding company who buy them. Getting paid today means netting less than what you would receive if you followed your payment schedule.
    • Tax Liability. When you sell, you will lose the tax-free benefits on your annuity. State and federal taxes may now apply, further reducing your funds.

    The pros may outweight the cons when considering whether to sell. It's up to you and your family to decide what is in your best interests. Be sure to consult with your accountant about the impact swapping your tax-free payments for a buyout will impact your finances.

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    Your Legal Funding Options: Ask Your Attorney

    Pre-Settlement Financing:

    It is important that you let your attorney know about your plans to apply for pre-settlement loans. Not only will they need to be involved in the process, but they are your best resource to answer your questions, and to learn what options are available to you.

    The best personal injury attorneys are usually very familiar with the process and have expert contacts with which they have a relationship with in the legal financing company they prefer and frequently work.

    Your legal counsel is their to support you, and you won't be the first client who needed money.

    Lean on them, they can help.

    Beginning the process is easy. Lawsuit funding companies provide secure, online applications, and your lawyer is their to support you through the process.

    Pre-settlement advance amounts can range from as little as $500 or for as much as $1 million from some companies.

    Selling Structured Settlements:

    Though your case may have been completed, your lawyer may still be able to support you through the process. Client relationships don't end once a case compeles. That's what separates the good attorneys from the great.

    Additionally your CPA will prove an invaluable resource and can help guide you about the specific tax implications your decision will result in. Weigh the options, pull out the calculator and crunch the numbers to determine what is the best choice for you and your family.

    If you have further questions, or would like to know the legal funding company we recommend to get a quote from - contact us now and we'll be happy to connect you.


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