Pre-settlement funding, also known as consumer legal funding, provides financial assistance to individuals awaiting a lawsuit settlement. It works by offering immediate funds to help cover expenses during the legal process, in exchange for a portion of the future settlement proceeds. Unlike a loan, pre-settlement funding is non-recourse, meaning if your case doesn’t result in a financial recovery, you don’t owe anything back. There are no monthly payments and no risk of collection actions—repayment only occurs if you win your case and is paid directly from your settlement funds. This can be a valuable option for those facing financial strain while waiting for a resolution.
Who May Qualify for Pre-Settlement Funding?
Pre-settlement funding, sometimes referred to incorrectly as a lawsuit settlement loan, is available for various types of lawsuits where a financial settlement or judgment is expected, making it an ideal option for plaintiffs facing a lengthy legal process and substantial expenses. Common cases that qualify for a lawsuit settlement funding include:
- Personal injury claims – Such as car accidents, slip-and-fall incidents, and workplace injuries.
- Employment disputes – Including wrongful termination, workplace harassment, and discrimination cases.
- Premises liability cases – Injuries resulting from unsafe conditions on another person’s property, like broken stairs or nonsecure walkways.
- Civil rights violations – Cases involving police misconduct, unlawful arrests, excessive force, or other constitutional violations.
- Wrongful death cases – Lawsuits filed by families due to deaths caused by negligence or intentional harm, such as fatal car accidents or medical malpractice.
Pre-settlement funding can offer essential financial support in these cases, covering costs while plaintiffs await the outcome.
Pre-Settlement Funding for Car Accident Lawsuits
The most common pre-settlement funding applications are for car accident cases. Applying for pre-settlement funding during a car accident lawsuit offers a flexible alternative to a loan. Repayment is only required if your case leads to a favorable settlement, giving you peace of mind as you manage medical costs and other financial pressures related to the car accident injuries.
Eligible Car Accident Types
Funding is available for a range of car accident cases, from rear-end collisions to severe rollovers with commercial vehicles, covering situations where passengers suffer significant injuries or vehicle damage. This makes pre-settlement funding a viable option to help manage expenses while waiting for settlement in a variety of accident scenarios.
Injuries That May Qualify
A variety of car accident injuries typically qualify for pre-settlement funding, including:
- Whiplash
- Broken bones and fractures
- Dislocated joints
- Lacerations
- Traumatic experiences like PTSD
- Concussions
- Heart-related injuries like heart attacks
Have you been involved in an auto accident or workers’ comp claim and need help with pre-settlement funding? Oasis is here to help!
Key Documentation for a Strong Car Accident Claim
Achieving a favorable outcome in a car accident claim depends heavily on having thorough evidence and documentation. Having this information well-documented strengthens your case and helps ensure a smoother claims process. Here’s a list of essential documents to organize for a strong case:
- Accident scene evidence, including contact and witness information, photos, and videos
- Police reports
- Medical records and bills
- Insurance policy details
- Proof of lost income
- Property damage estimates
- Documented communication
- Any admissions of fault
- Expert witness statements
The Pre-Settlement Funding Process
The pre-settlement funding process is straightforward and typically fast, involving these main steps:
1. Applying for Pre-Settlement Funding
Eligible applicants are those involved in personal injury lawsuit claims who are represented by an attorney. If you meet these criteria, you can apply directly on a funding company’s website. Approval generally depends on the strength of your case, including factors such as the potential settlement value. It is important to first discuss with your attorney whether pre-settlement funding is right for your case.
2. Case Evaluation
The funding provider will review your case details in consultation with your attorney to determine eligibility and the amount of funding available. A strong case with a high likelihood of a favorable outcome improves chances for approval.
3. Funding Approval
Funding decisions are usually made quickly, often within 24 to 48 hours.
4. Pre-Settlement Funding Agreement
Once approved, both the plaintiff and their attorney sign an agreement outlining the terms, including payment and rates. After all signatures are secured, funds are ready for release.
5. Receipt of Funds
Funds are often available within 24-48 hours through Western Union, direct deposit or check, allowing for prompt access to financial support.
How Pre-Settlement Funding Can Be Used
Pre-settlement funding can be accessed immediately and directed toward a variety of essential expenses. Here are common ways recipients use these funds:
- Daily living costs – Rent, groceries, and everyday essentials.
- Medical expenses – Treatments, hospital stays, prescriptions, and other healthcare needs.
- Household bills – Utility expenses like electricity, water, and other necessities.
- Legal costs – Attorney fees or other case-related legal expenses.
- Childcare & education – Childcare services or educational needs.
- Transportation – Commuting or travel expenses.
- Unexpected emergencies – Unplanned financial needs that may come up.
By addressing immediate financial needs, pre-settlement funding, commonly and mistakenly referred to as a lawsuit or auto accident loan can help reduce stress, enabling recipients to focus on their recovery and legal matters.
Have you been involved in an auto accident or workers’ comp claim and need help with pre-settlement funding? Oasis is here to help!
Is There a Pre-Settlement Limit?
Oasis Financial establishes limits for pre-settlement funding based on several factors related to the plaintiff and their case, including:
- The strength of the case
- Estimated duration of the case
- Anticipated settlement amount
- Severity of injuries
- Projected legal fees and court expenses
- Current and future lost wages
- Available insurance coverage
- Current and expected medical costs
- Any previous funding received, if applicable
Can I Get More Than One Pre-Settlement Funding Disbursement?
In many cases, it’s possible to obtain additional pre-settlement disbursements, although this can vary based on the specifics of your case.
You might pursue additional pre-settlement funding for reasons such as:
- Misjudging your financial requirements
- An unexpectedly prolonged case
- Further loss of income
- Unforeseen medical costs
Pre-Settlement Funding FAQs
What are the Risks of Pre-Settlement Funding?
Pre-settlement funding is considered a non-recourse obligation, which means you won’t be responsible for repayment if your case isn’t successful. This significantly reduces your financial risk.
Non-Recourse
Non-recourse means you aren’t obligated to repay anything if your lawsuit doesn’t result in a settlement.
What Is the Probability of Defaulting?
Oasis only collects fees if your case wins, so you aren’t at risk of default. Because of this, only applicants with a high chance of receiving a settlement are selected to receive pre-settlement funding.
Choosing a Pre-Settlement Funding Company
When choosing a pre-settlement funding company, look for one that offers transparency, no hidden fees, and quick approval times.
Why Choose Oasis Financial?
With over 25 years as an industry leader, Oasis Financial has provided financial support to more than 350,000 people. Known for a simple application process, outstanding customer service, and a high approval rate, Oasis makes securing pre-settlement funding easier and more reliable.
Does Oasis Service Your State?
Oasis provides pre-settlement funding in the following states: Alabama, Alaska, Arizona, California, Colorado, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Wisconsin, Wyoming
Work with Oasis Financial
With Oasis Financial, you can benefit from a straightforward application process with no upfront costs. To begin, reach out to one of our friendly customer service representatives.
For additional details, visit our FAQ page.
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 SC and CO 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.