Can My Lawyer Stop Me From Getting Pre-settlement Funding?


According to the National Center for Health Statistics, approximately 31 million people in the USA require medical treatment for their injuries each year. However, 5.5 million of them are just car accidents due to someone else’s negligence. Whereas thousands of cases are the victim of different types of personal injury. 

On average, the cost of a person hospitalized for three days is approx $30,000. The payment of these unexpected bills can become hectic and challenging. However, personal injury lawsuit funding can help you out in this situation. But the important part of this settlement loan is your attorney. 

If you are opting for settlement funding, then you must know the fact that you are required to have a lawyer before applying for the legal funds. However, you may face severe problems getting your settlement funds if you have an uncooperative attorney. 

According to Provident Lawsuit Loans, settlement loan companies typically believe in obtaining the final pieces of information from your law firm. So you must have a cooperative attorney to apply for legal settlement loans. 

Why is an Attorney Important While Applying for Legal Funds?

Many personal injury victims often have questions about the role and importance of an attorney in legal funding. But before understanding the role and need of an attorney, you need to understand two basic concepts of settlement funding.

  1. What is considered pre-settlement funding?
  2. What is not considered pre-settlement funding?

When you are a victim of a personal injury case, you receive some compensation amount as a settlement if you win the lawsuit. However, you can use this amount to carry out the following expenses. 

  • Your medical bills
  • Your lawyer’s fees
  • Your daily expenses
  • Any other important expenses

However, your lawsuit proceedings may take several months or even years. In this situation, legal settlement funds can help you out. But first, you need to understand the basic concepts of legal settlement funds. 

What is Considered Legal Settlement Funding?

A legal settlement fund is an amount you can receive before the settlement of your case. However, you have to repay the amount to the funding company after your attorney wins the case. So the good news is that you don’t have to pay a single penny out of your pocket. 

But to qualify for legal settlement funds, there are two main requirements:

  1. You must have an existing lawsuit or claim for your loss in court.
  2. Another necessary requirement is your attorney. You must have an attorney to apply for legal settlement funds. 

What is Not Considered Pre-Settlement Funding?

Often people call it a pre-settlement loan. However, it is not a loan. You do not have to repay it unless you win a case. In case you lose your lawsuit, you don’t owe a penny to the government. 

Role of Attorney in Pre-Settlement Funds

Your attorney will be involved in the lawsuit financing procedure if you opt for a pre-settlement advance. Before you accept the pre-settlement advance, your attorney will evaluate the financing documents and may be required to give the pre-settlement funding company information about your case.

For instance, some of the responsibilities of your attorney are as follows: 

  • Providing Information About Your Case: The legal financing businesses will need access to the particulars of your claim, including the legal paperwork and the medical records. Your attorney must be accessible and receptive to these inquiries.
  • Distributing the Compensation Amount: When the defendant in your case pays the settlement amount, it will be sent to your attorney, who is responsible for making the proper distributions.
  • Preventing Your Case from Negative Impacts: Tell them how much money you can accept without negatively impacting your case.

However, the legal funding companies only consider cases with approx. 90% chance of victory. But the good news is that your attorney’s involvement can strengthen your case. 

How Your Lawyer Can Prevent You From Obtaining Funding?

Although, anyone with an active lawsuit can apply for a legal fund. However, the involvement of an attorney is one of the basic requirements of legal funding. But there are times when your lawyer can become a barrier between you and your settlement loan. 

Your attorney will consider various criteria before advising you to continue with a pre-settlement lawsuit loan. The following are the most frequent causes of rejection:

  • You reside in an unfundable state.
  • You have borrowed more advances than you were allowed to.
  • It is too early to fund your claim.
  • In less than 0.1% of cases, attorneys do not prefer to engage with pre-settlement companies.
  • Because of ethical obligations, your attorney may decline if the loan isn’t needed immediately, such as for housing, transportation, utility bills, or food.

Benefits of Pre-Settlement Funds

However, opting for pre-settlement loans can help you get the following advantages.

  1. Reduces the Financial Strains

While dealing with a personal injury lawsuit, you may face challenges in bearing your daily expenses like medical bills, rents, fuel consumption, etc. In such cases, pre-settlement funds can help you to ease your financial strains. 

  1. Serves as a Source of Income

If you are injured in a personal injury case and unable to work, your expenses may pile up too fast. Your medical bills, credit card bills, and daily expenses can become hectic as you are out of work. In such a situation, settlement funds can serve as a source of income for you. 

  1. Does Not Require Credit History

Before granting your request for cash, pre-settlement lawsuit funding companies do not investigate your credit history. Due to the fact that litigation loans do not require partial payments, you are also not required to have a job to be eligible. 

Instead, to determine whether or not to approve your funding request, the funding firm evaluates the merits of your case.

  1. Aids in Your Ability to Negotiate a Higher Settlement

You might feel forced to accept the first offer that comes your way due to financial strain. That offer could not cover your long-term expenses in a sufficient manner. Pre-settlement cash can offer you the wiggle room you need to fight for a fair outcome, even if it means going to trial.


Pre-settlement funding is the amount you can get before your lawsuit is settled. Moreover, to qualify for lawsuit funds, it is necessary to have an attorney’s involvement. However, your attorney can stop you from pre-settlement funds if they think it is not best for you.

If your attorney doesn’t cooperate with you even though you think legal funding is your best course of action, you might need to find a new counsel. Finding a trustworthy lawyer who shares your opinion on what is best for your case is ideal.


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