THE BASICS
What is pre-settlement funding?
It is cash for plaintiffs whose lawsuit is still open. You get the money now, and you only pay it back if you win or settle. Lose the case and you keep what we sent you. The product goes by several names: lawsuit loan, lawsuit cash advance, legal funding. They all mean the same thing.
Is a lawsuit loan really a loan?
Technically, no. A loan has to be repaid no matter what. This does not. Most people in the industry still call it a “loan” because the word is familiar, but the legal term is non-recourse cash advance. The distinction matters because it changes how the money is treated for credit, taxes, and what happens if your case fails.
What does non-recourse mean?
Non-recourse means we cannot come after you personally if your case loses. Repayment can only come from your settlement. No settlement, nothing to repay. We do not garnish wages, we do not seize property, and your file does not go to collections.
Is pre-settlement funding legal?
Yes, in most states. The industry has been around for over 25 years. Some states have specific consumer protection laws regulating it, and a handful restrict or prohibit it. Whether funding is available to you depends on the state where your lawsuit was filed, not always where you live. A case manager can confirm this in a couple of minutes.
How is this different from a personal loan?
A personal loan needs to be paid back monthly with interest. Lose your job, get sick, fall behind, the lender still wants their money. Pre-settlement funding does not work that way. There are no monthly payments, and there is no repayment if you lose your case. Banks look at your credit and job; we look at your lawsuit.
ELIGIBILITY AND QUALIFICATION
Who qualifies for a pre-settlement cash advance?
Adult plaintiffs in active personal injury or civil lawsuits, represented by an attorney working on contingency. Your case needs reasonable liability and a settlement value worth funding against. Income, employment, and credit are not part of the decision.
Do I need good credit to get funded?
No. Credit is not part of the decision. We do not pull your credit report, we do not ask for your score, and we do not care what is on it. Bankruptcies, charge-offs, missed car payments, none of it matters here.
Will you check my credit score?
No, never. The advance is also not reported to TransUnion, Experian, or Equifax, so your credit profile sees nothing.
Do I need a job to qualify?
No. Many of the people who apply are out of work specifically because of their injury. Income is not how we underwrite. Unemployed, retired, on disability, between jobs, all fundable.
Do I need an attorney to apply?
Yes, this is non-negotiable. Your lawyer has to confirm the case details, sign the funding agreement, and send the repayment from your settlement when the case is over. Without an attorney representing you on contingency, we cannot fund. If you are still looking for a lawyer, find one first.
How old do I have to be to apply?
You need to be 18 or older to apply in your own name. For minor plaintiffs, the parent or court-appointed guardian usually applies on their behalf. Some states have extra rules around minor settlements, so the process can vary.
What states does America Lawsuit Loans fund in?
Most U.S. states. Their is a small number of states which have laws that limit or block consumer legal funding. Call (888) 335-3537 and we will confirm in under five minutes whether your state qualifies.
What case types do you fund?
Most personal injury and civil cases qualify. Common ones include car accidents, truck accidents, motorcycle accidents, slip and fall, premises liability, medical malpractice, product liability, abuse and assault cases, civil rights violations, employment discrimination, wrongful death, workers compensation, and mass tort claims. If your case type is not listed, ask. We fund a lot of less common claims too.
What case types do you not fund?
Generally we cannot fund divorce, criminal defense, family law, or immigration cases. Small claims under a few thousand dollars usually do not work either, because the numbers do not pencil out. Cases with very weak liability or no clear defendant are tough. Every case still gets a look before we say no.
APPLICATION PROCESS
How do I apply for pre-settlement funding?
Fill out the form on our contact us page or call (888) 335-3537. We will need your attorney’s name and phone number. After that, your attorney sends us a few documents and the application is essentially done. Most plaintiffs hear back within 24 hours.
What documents do I need to submit?
You personally do not send much. The bulk of the paperwork comes from your attorney: police or incident report, medical records, the complaint or demand letter, photos if there are any. We tell your lawyer exactly what we need after you apply, so you do not have to chase paperwork yourself.
How long does approval take?
Usually 24 to 48 hours after we receive case documents from your attorney. Clean cases like a clear-fault rear-end collision can clear same-day. Complex cases like medical malpractice, surgical errors, or mass torts take longer because there are more records to review. Three to five business days is fair for those.
How fast can I get my money?
Most plaintiffs have funds in hand within 24 hours of signing the funding agreement. Wire transfers and same-day check options are both available. Counting from when you first call to money in your account, you are looking at 24 to 72 hours in most cases. The thing that usually slows it down is how quickly the attorney’s office sends paperwork over.
Can I apply over the phone?
Yes. Call (888) 335-3537 and a case manager can take your application in about 10 minutes. Online and email work too. There is no fee either way.
Is the application free?
Yes. No application fee, no underwriting fee, no upfront cost of any kind. You only pay anything if your case settles in your favor and you accept a funding offer.
What if my attorney does not want to work with a funding company?
This happens occasionally. Some attorneys are unfamiliar with how pre-settlement funding works and have questions. Most agree once they see the paperwork and understand the process. We send your lawyer a short information packet and answer whatever they want to ask. If your attorney still refuses after that, we cannot fund the case.
FUNDING AMOUNTS
How much money can I get?
Most plaintiffs get between $500 and $100,000. The exact amount depends on case strength, expected settlement, and your attorney’s input on case value. As a rule of thumb, we fund up to about 10 to 20 percent of the projected settlement so you keep most of the recovery for yourself.
What is the minimum advance amount?
Usually $500. Anything less and the underwriting and processing costs eat too much of the value. If you need a smaller amount, your case manager can point you toward other options.
What is the maximum advance amount?
Up to $250,000 or more on large cases like catastrophic injury, medical malpractice, or wrongful death. Most advances are much smaller, somewhere between $1,000 and $25,000. Bigger amounts mean more underwriting and a slower approval.
Can I get more than one advance on the same case?
Yes. Plaintiffs come back for additional funding pretty often as cases drag on, medical bills pile up, or work hours get cut. Each new advance is reviewed against case progress and how much funding is already on the case.
How do you decide how much money to give me?
It comes down to liability strength, expected settlement value, and how much funding is already on the case. We do the math to leave enough settlement value on the table for you and your attorney.
Can I get a buyout from another funding company?
Often yes. If you have an existing advance with another lawsuit funder, send us their payoff letter. Sometimes we can buy out their contract at a better rate. Plaintiffs have saved thousands by switching when their original funder priced too high or stacked unnecessary fees.
COST AND REPAYMENT
How much does pre-settlement funding cost?
It depends on the advance amount and how long your case takes to settle. Cost is a flat fee or simple monthly rate, not APR. We give you a clear repayment chart before you sign so you can see the total at 6 months, 12 months, 18 months, and beyond. Nothing is buried.
What are the rates on lawsuit loans?
Industry rates usually run 2 to 4 percent per month, though some companies charge more. We aim to stay competitive at the lower end. Your specific rate is on your funding offer before you sign.
Are there hidden fees?
No. Everything is on your funding agreement. No application fees, no monthly service charges, no broker fees, no surprise charges added later.
What happens if I lose my case?
You owe nothing. Keep the money. We do not call, we do not collect, and we do not report the loss to any credit bureau.
Do I make monthly payments?
No. Zero payments while your case is open. Repayment comes out of your settlement at the end, sent by your attorney directly. You never write a check.
When do I have to pay back the advance?
Only when your case settles or wins at trial. There is no other due date. If your case takes one year or four years, you pay nothing in between. The repayment is handled by your attorney out of the settlement funds.
Does the cost grow over time?
Yes. The longer the case takes, the more the funding costs. Most companies, including us, cap the total payoff after a set number of months so the cost cannot grow indefinitely. Your funding agreement spells out the math month by month.
Can the payback be more than my settlement?
No. Every advance is structured so your total payback cannot exceed your share of the settlement. We fund only a fraction of expected case value to protect you. If your settlement comes in much smaller than projected, we sometimes reduce the payoff so you still walk away with money.
Can I pay back early to save money?
Yes. Cost is based on time, so a faster settlement means a smaller payoff. No prepayment penalties. Some funders offer early payoff discounts on top of that.
How does the repayment process work?
Your attorney holds the settlement check in their trust account when it arrives. Before they cut your share, they send our payoff directly out of the settlement. You never touch that portion. The leftover settlement goes to you.
SPECIAL SITUATIONS
Can I get funding if I filed for bankruptcy?
It depends on timing. Closed bankruptcy with the lawsuit properly disclosed in the filing, you may still qualify. Open and active bankruptcy, usually no, because the court controls your assets including the lawsuit. Your case manager will look at the specifics before giving an answer.
Can I get funding while on Social Security or disability?
Yes. SSDI, SSI, and other disability benefits do not affect eligibility. The advance is not income for benefit purposes in most states. We fund disabled plaintiffs all the time.
What if I have child support garnishments or liens?
Child support liens, medical liens, and other claims affect how the settlement gets divided, but they do not usually block funding. Your case manager will go over any liens with your attorney to confirm there is enough settlement value left to support the advance.
Can I get funding if my case is on appeal?
Yes. Appeal funding is available for plaintiffs who won at trial but are facing an appeal from the defendant. Because appeals can reverse the verdict, these advances carry more risk for the funder, so the amounts and rates may be different from standard pre-settlement funding.
What if my settlement comes in smaller than expected?
If your settlement is significantly smaller than projected, we sometimes reduce the payoff so you are not left with nothing. This is called a hardship reduction. Not every funder offers it. We look at every case individually when this comes up.
Can my attorney refuse to sign the funding agreement?
Yes. Attorneys have the right to refuse, and some do for personal or strategic reasons. If yours refuses, we cannot fund. Talk to your lawyer first to confirm they will sign before you apply.
What is a Letter of Protection (LOP)?
A Letter of Protection is a written promise from your attorney that medical providers will be paid out of your eventual settlement. It lets you get treatment now and have the bills wait. LOPs are common in personal injury cases and do not interfere with pre-settlement funding.
PRIVACY, CREDIT, AND TAXES
Will this show up on my credit report?
No. Pre-settlement funding does not appear on credit reports. We do not report to any credit bureau. Your score, accounts, and future loan applications are unaffected.
Will my employer find out?
No. Employers are never contacted. The only people who know about your funding are you, your attorney, and our team.
Will the defendant’s insurance company know?
No. The defendant and their insurance company are not informed. Insurance carriers sometimes try to use funding against plaintiffs in negotiation, so we keep the agreement private.
Is the money I receive taxable?
Generally no, because the advance is against a future settlement, not earnings. The underlying settlement may have tax consequences depending on the case type. Talk to a tax professional about your specific situation.
USING YOUR FUNDS
What can I spend the money on?
Whatever you need. Rent, mortgage, car payments, groceries, utilities, medical co-pays, replacing lost income, anything. There are no rules on how you use it.
Can I use the money for medical bills not covered by insurance?
Yes. A lot of plaintiffs do exactly that, paying for surgeries, physical therapy, prescriptions, or other care insurance will not cover. Getting the right treatment can also strengthen your lawsuit by documenting the full extent of your injuries.
