If you're a plaintiff currently involved in a lawsuit and need cash, you may be able to receive capital through pre-settlement funding. Many types of claims are eligible for pre-settlement funding, but personal injury, medical malpractice, premise liability and product liability cases are most common since those types of claims usually result in missed work and high medical bills. Pre-settlement funding is typically used to cover living expenses, mortgage payments or car loan payments during legal proceedings. Often, this gives plaintiffs extra time to negotiate a better settlement deal.
Pre-settlement funding is sometimes called a lawsuit loan, pre-settlement loan, lawsuit cash advance, pre-settlement cash advance or lawsuit funding. Remember, no matter what it’s called, borrowing money against expected court proceeds is risky — lawsuit lenders are largely unregulated by the government.