If you’re in the middle of a personal injury lawsuit and are feeling the financial pressure from medical bills, lost income, or everyday expenses, you’re not alone. Lawsuits can take months or even years to resolve, and in the meantime, the bills don’t stop coming. This is where pre-settlement funding can help.
In this post, you’ll learn how pre-settlement funding works, step by step, so you can better understand your options and feel more confident navigating the application process. Whether you’re just getting started or are already working with an attorney, this information will help you decide if pre-settlement funding is right for you.
What Is Pre-Settlement Funding?
Pre-settlement funding provides money to plaintiffs involved in ongoing personal injury lawsuits. It’s designed to help cover essential expenses like medical bills, rent, or groceries while you wait for your case to settle. Unlike a loan, this type of funding is heavily based on the strength and potential value of your case.
While sometimes incorrectly referred to as “pre-settlement loans” or “legal loans,” there are some key differences between pre-settlement funding and loans. For example, pre-settlement funding is a non-recourse obligation, which means you only repay the funds if you win or settle your case. If your case doesn’t result in a payout, you owe nothing. Also, the repayment comes directly from your lawsuit settlement, so there are no monthly payments to worry about.
In short, pre-settlement funding gives you access to the money you need now, without putting your future at risk.
Who is Eligible for Pre-Settlement Funding?
Pre-settlement funding is typically available to individuals involved in personal injury lawsuits who are experiencing financial strain while waiting for their case to resolve. You don’t need to have perfect credit, a job, or collateral—just a valid legal claim and a lawyer representing your case.
Pre-settlement funding is ideal for someone like Mike, a rideshare driver injured in an accident, who’s unable to work and struggling with bills. While his attorney handles the case, the funding helps him cover everyday expenses like rent and groceries without added financial stress.
If you’ve been in an auto accident or similar situation, and your case has a strong likelihood of settling, you may qualify for pre-settlement funding too.
Types of Pre-Settlement Funding
Pre-settlement funding can be used in a wide range of personal injury cases where a plaintiff is waiting on a potential settlement or court award. Whether you’ve been hurt in a car accident, suffered a slip and fall, or experienced another type of injury due to someone else’s negligence, pre-settlement funding can help bridge the financial gap while your case is pending.
Car accident cases are some of the most common cases. Slip and fall cases are also eligible, particularly when injuries occur due to unsafe conditions on someone else’s property. Other qualifying cases may include workplace accidents, medical malpractice, and more.
If your case involves clear liability and you’ve hired an attorney, there’s a good chance you could qualify for pre-settlement funding regardless of the type of personal injury lawsuit.
Have you been involved in a personal injury lawsuit and need help with pre-settlement funding? Oasis Financial is here to help!
What Risks are Involved in Pre-Settlement Legal Funding?
One of the biggest advantages of pre-settlement legal funding is that it’s considered low risk for plaintiffs because it’s not like a loan. It’s a non-recourse obligation, so you’re only required to repay the funds if you win or settle your case.
If you win your case, the funding is repaid to Oasis directly from your settlement amount, so there are no monthly payments or financial surprises. We work closely with your attorney to evaluate your case and determine the appropriate amount of funding, keeping your long-term compensation in mind. It’s a straightforward process designed to support you during a difficult time—not add to your financial stress.
Step-by-Step Guide to Pre-Settlement Funding: From Application to Approval
Getting pre-settlement funding is a fairly quick and simple process, but it does follow a specific set of steps. While you won’t be buried in paperwork, there is a proper procedure to make sure everything goes smoothly.
Step 1 – Pre-Settlement Funding Application
The first step in the pre-settlement funding process is completing a quick-and-easy application, which typically requires basic information about your personal injury case and your attorney’s contact details. Your attorney will also be involved, as the funding company will contact them to verify case details and help determine your eligibility.
Step 2 – Injury Case Evaluation
Once your application is submitted, the funding company reviews the details of your case—including the type of injury, liability, and the likelihood of a successful settlement or court award. Stronger cases with clear evidence and a high chance of winning typically qualify for more funding, while cases with uncertain outcomes may receive a smaller funding or be declined.
Are Pre-Settlement Funding Qualifications Different from State-to-State?
Yes—where your lawsuit is filed and where the injury occurred can affect your eligibility for pre-settlement funding. Each state has its own legal rules around personal injury claims and third-party funding, so the process,qualifications and availability can vary depending on local laws. That’s why it’s important to work with a funding company familiar with your state’s regulations.
Oasis currently does not provide pre-settlement funding in Arkansas, Connecticut, Kansas, Kentucky, Maryland, Montana, North Carolina, or West Virginia. However, if you’re pursuing a Workers’ Compensation case, we do offer funding in select states: Illinois, Missouri, New Mexico, Ohio, and South Carolina. If you’re unsure whether you qualify based on your location, our team can help you quickly determine your eligibility.
Step 3 – Funding Approval
Approval for pre-settlement funding depends on the strength of your case. Applicants with clear liability, strong evidence, and significant damages have higher approval chances. Cases with solid documentation, like medical records and witness statements, and a high likelihood of success, such as car accidents or slip-and-fall incidents, are typically approved more often.
Step 4 – Funding Process
Once approved, pre-settlement funding is usually disbursed quickly, often within 24 to 48 hours or even on the same day as approval. The funds are typically sent via direct deposit, check, or money transfer. In most cases, you’ll receive the entire approved amount upfront, providing immediate access to the financial relief you need.
What Can I Use Pre-Settlement Funds For?
Pre-settlement funds are yours to use as you see fit. While the money is typically used to cover expenses that arise while waiting for your lawsuit to settle, how you spend it is entirely up to you. Some common expenses people use pre-settlement funding for are:
- Medical bills
- Rent or mortgage payments
- Utility bills
- Groceries and everyday essentials
- Car repairs and transportation costs
- Childcare or daycare services
- Lost wages and income replacement
- Debt payments
- Insurance premiums
Attorney’s Role in Pre-settlement Funding
Your attorney plays a key role in the pre-settlement funding process, making sure the funding terms align with your lawsuit and helping to determine the appropriate amount of funding to avoid over-funding. This enables you to make informed decisions about your financial and legal strategy.
How Does Pre-Settlement Funding Affect Attorney Fees?
Pre-settlement funding is separate from attorney fees, though both are repaid from the settlement proceeds. The funding is used to cover immediate expenses, while attorney fees are typically a percentage of the settlement amount, as outlined in your retainer agreement.
In some cases, if the settlement is delayed or reduced, it could affect how much is available to cover both attorney fees and the repayment of pre-settlement funding. However, in most situations, both payments are deducted from the settlement before you receive your portion.
Work With Oasis Financial
When comparing pre-settlement funding companies, you’ll want to select a trusted provider, like Oasis Financial. We offer quick approvals, clear terms, a transparent process without any hidden fees, and competitive rates to help clients manage their finances while waiting for their settlements.
By choosing Oasis Financial, you’re partnering with a reliable ally dedicated to helping you navigate the financial challenges of your lawsuit. For more details, visit our FAQ page, or reach out to us today to start your easy online application.
The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. No attorney-client or confidential relationship is or will be formed by use of the site. Readers of this website should contact their attorney to obtain advice with respect to any particular legal matter. No reader, user, or browser of this site should act or refrain from acting on the basis of information on this site without first seeking legal advice from counsel in the relevant jurisdiction.
Oasis provides pre-settlement funding, also known as consumer litigation funding, to its customers through different products depending on their state of residence or cause of action. Many consumers will be provided pre-settlement funding in the form of a purchase agreement, which assigns a portion of the pending proceeds from their legal claim. Other consumers, such as those in CO, CT and SC will be offered a funding in the form of a pre-settlement loan, sometimes referred to as a lawsuit loan. These transactions have important differences, therefore, consumers should carefully review and be aware of the type of transaction that is offered to them by any funding company.