How Lawsuit Funding Works

The Fundamentals of Lawsuit Funding And How It Works

Learn how legal funding works and get answers to all of our most frequently asked questions

Have Questions?
Call and speak with one of our funding experts today.

Frequently Asked Questions

CAN I BORROW MONEY AGAINST MY LAWSUIT?

Yes, you can get a lawsuit cash advance on your lawsuit if your case has strong enough liability to prevail against a sufficiently insured defendant.

When you borrow against your lawsuit, you are simply tapping into a small portion of the anticipated future value of your settlement proceeds.

MY LAWYER SAID LAWSUIT FUNDING IS EXPENSIVE. IS IT?

“Expensive” is a relative term. Think of it like this:

– Is legal funding expensive if you’re a well-paid lawyer with a good job and ample financial resources?
Absolutely.

– Is it expensive if you’re a person with excellent credit and plenty of real estate that you can pledge as collateral for a low-interest bank loan?
Yes.

– Is it expensive if you’re seriously injured, have bad credit, are unemployed or unable to work, and are about to lose your vehicle to repossession, become homeless due to eviction or foreclosure, or are unable to pay for basic necessities like utilities, medical care, or food?
Probably not, especially when you consider not only the physical implications but also the emotional and psychological impact those things would have on you.

You are the only one who can decide if lawsuit funding is right for you and your particular circumstances.

MY LAWYER SAID LEGAL FUNDING COULD EAT UP ALL OR MOST OF MY SETTLEMENT. IS THAT TRUE?

If you choose the wrong legal funding company? Yes, that is a distinct possibility.

If you choose TriMark Legal Funding? No, thanks to built-in safety features like funding limits, non-compounding interest, and ‘capped rates’ specifically designed to protect you and your settlement.

Funding limits. We will only fund up to 20% of the anticipated net settlement amount (as determined by our underwriters) on pending cases and up to 50% of the anticipated net settlement amount on settled cases.

Capped Rates. Most of our rates are non-compounding and capped at 2X (two times). For riskier cases, they can be compounding and capped at 2X or 3X.

“Capped at 2X” means that as interest periodically accrues, once the balance owed reaches two times the funded amount of your advance (which takes about 2-2.5 years), IT STOPS ACCRUING ADDITIONAL INTEREST. And regardless of how much longer it takes to successfully resolve your case, that is the maximum amount you could ever have to pay back.

For example;
If the funded amount is $5,000, the maximum repayment could not exceed $10,000.
If the funded amount is $10,000, the maximum repayment could not exceed $20,000.
If the funded amount is $25,000, the maximum repayment could not exceed $50,000.

ARE ALL LAWSUITS ELIGIBLE FOR LEGAL FUNDING?

Unfortunately not. Legal funding is only available:

– to plaintiffs; never defendants
– to plaintiffs represented by a contingent-fee attorney; never pro bono, pro se, hourly retainer, EEOC representation, or class action claims administrators
– on civil lawsuits and commercial litigation; never on criminal lawsuits or family law cases
– on sufficiently insured pending and settled cases; never default judgments or non-insured judgments or verdicts

HOW DOES SETTLEMENT FUNDING WORK?

Approval of a settlement advance is based on the strengths and merits of your lawsuit, not your credit score.

Repayment of the advance comes from your settlement proceeds after the case is resolved successfully. If it isn’t resolved successfully, you are under no obligation to repay the advance.

Settlement loans can give you immediate cash to cover bills and living expenses before a case is settled or a jury verdict is reached.

You can use the money for rent or mortgage, vehicle expenses, medical bills, emergency travel, or even groceries. The money is yours to use as you need. You only repay the advance if you win your case or reach a favorable out-of-court settlement.

WHAT HAPPENS IF MY CASE IS LOST OR IT DOES NOT SETTLE?

Unless your case is resolved successfully, either via a negotiated settlement or jury verdict, you are under no obligation to repay the money.

In other words, you get to keep the money and owe nothing.

WHAT ARE THE RATES LIKE ON A LAWSUIT LOAN?

Rates on lawsuit loans are based on risk level and several other factors. Our rates typically run between about 25% and 35% non-compounding per year. That works out to less than 3% monthly, and again, it’s non-compounding.

In higher-risk cases, we may occasionally use a monthly compounding rate.

It also depends on whether the case is settled, still pending, or on appeal.

After you are approved following an underwriting review, you will receive, in writing, a full, clear explanation of the rates and fees so you will know exactly what you will pay before you ever sign anything.

CAN I GET A LAWSUIT LOAN WITHOUT MY ATTORNEY BEING INVOLVED?

No. Your attorney or law firm will need to be at least minimally involved in and cooperate with the process.

ARE THERE DIFFERENT DISBURSEMENT OPTIONS AVAILABLE?

Yes, we have multiple disbursement choices.

One-Time Lump Sum
We will make a single, one-time wire transfer into your checking account or send a check to you via FedEx. This is the most common type of funding we offer.

Additional Funding
It is common for people who got a one-time lump sum to need more money further down the road. for this, we simply send another wire transfer or FedEx another check.

Monthly Recurring Disbursement
This option is reserved for very seriously or catastrophically injured plaintiffs.

We start with a one-time disbursement to get everything caught up and current. Then, around the first day of each month, a pre-determined amount, sufficient to cover all monthly expenditures, is automatically deposited via wire transfer.

HOW AND WHEN IS A LAWSUIT CASH ADVANCE REPAID?

A lawsuit settlement advance is only repaid after the case is resolved successfully.

When your case settles and your attorney receives the settlement check from the insurance company, she will pay her fees, case costs, any outstanding medical liens, and the lien for the cash advance and you receive the remainder.

IS LAWSUIT FUNDING AVAILABLE IN MY STATE?

TriMark Legal Funding currently provides lawsuit loans in 46 of the 50 United States.

You can check individual states for availability and restrictions.

Some types of funding, like Colorado lawsuit loans and North Carolina lawsuit loans, have specific minimum dollar amount requirements.

Some others have restrictions on the types of funding available, such as states where settlement loans for workers comp are not available.

CAN MY ATTORNEY PREVENT ME FROM GETTING SETTLEMENT FUNDING?

Legally? No, not unless you reside in a state that has a law that prohibits it.

But realistically? Yes, they can simply ignore the lawsuit funding company and refuse to engage with them because there is no legal requirement that an attorney MUST cooperate.

Generally speaking, most lawyers will cooperate with lawsuit funding companies. We’ve found this to be especially true when the lawyer has spoken to their client and understands that they are in dire financial need.

That being said, we do still occasionally encounter law firms with a policy that they will not work with companies that offer legal funding.

HOW MUCH MONEY CAN I GET?

We can approve and fund from $500 to $500,000+.

The amount you are approved for will be determined by a number of things including:

– how much you request on your application
– the type of case you have
– the state you reside in
– the strength of the liability against the defendant
– the amount of total insurance coverage available
– the degree, severity, and permanence of your injuries
– the amount you will likely receive based on the above
– the amount of any prior funding you may have on the case

CAN I GET MORE THAN ONE LAWSUIT CASH ADVANCE?

As long as your case will support multiple fundings, then yes.

We can fund up to about 20% of the anticipated net value (as determined in our underwriting review) on pending cases and up to 50% of the anticipated (or actual) net value on settled cases.

WHAT IF I GOT A LAWSUIT ADVANCE FROM ANOTHER COMPANY?

Generally speaking, as long as your case has sufficient value to support additional funding, it’s not a problem.

If you received a lawsuit cash advance from another legal funding company, be sure to mention that on your application because we will need to order a payoff.

We would simply arrange to buy out the other legal funding company’s lien, roll it into your new funding agreement and then fund the additional amount you were approved for.

HOW LONG DOES IT TAKE TO GET A SETTLEMENT LOAN?

We normally quote 1 to 2 business days, however, under ideal conditions, we can process, approve, and fund on the same day we receive an application.

As soon as we receive an application, we reach out to the attorney and request some case information.

Once we receive everything and the underwriter/attorney conversation has taken place, applicants can expect to receive a decision that day or the following morning.

CAN MY ATTORNEY LOAN ME MONEY FOR LIVING EXPENSES?

In a word, no.

The American Bar Association, in its Rules of Professional Conduct, prohibits attorneys from lending money to their clients because of the potential for conflicts of interest.

It states “Lawyers may not subsidize lawsuits or administrative proceedings brought on behalf of their clients, including making or guaranteeing loans to their clients for living expenses”.

Attorneys can, however, advance case-related costs, with repayment contingent upon the outcome of the case.

What Is Lawsuit Funding?

Lawsuit funding is referred to by many names such as lawsuit loans, pre-settlement loans, and post-settlement loans.

Despite what many people call it, however, it’s not a loan.

Legal funding is a non-recourse cash advance of a portion of the anticipated future value of a plaintiff’s lawsuit settlement.

It is designed specifically to suit the unique needs of injured plaintiffs, and plaintiffs are the only people who can get them.

Settlement Funding Is Only For Plaintiffs

Unlike traditional bank loans, approval for a lawsuit cash advance is not based on credit scores, co-signors, or real estate collateral.

This is great news for people whose credit scores have taken a beating after they were injured and fell behind on bills.

Rather than credit scores, lawsuit advances are approved almost entirely on the strengths and merits of the underlying legal claim. This includes:

  • Plaintiff must be represented by a contingent-fee attorney
  • There must be clear liability against the defendant
  • The severity and extent of the plaintiff’s injuries
  • The total amount of available insurance coverage

More Beneficial Features

Also unlike bank loans, there are no monthly payments, no pre-payment penalties, and no pre-determined repayment date.

Lawsuit cash advances are simply repaid out of your settlement proceeds after you win your case.

In The Beginning

The foundational idea behind plaintiff legal funding is simple, straightforward, and well-intentioned.

Lawsuit loans are intended to help plaintiffs negotiate from a position of strength, rather than from a position of vulnerability, financial need, or desperation.

This is sometimes called “leveling the playing field”.

It is a well-known fact that insurance companies can be very tight-fisted when it comes to paying legitimate injury claims against their policyholders.

Sadly, many insurers have developed a reputation for taking advantage of and exploiting the financial circumstances of injury victims.

Delay, deception, and other dirty tricks can be used to force premature claims settlements.

Some of the more frequently-used tactics include:

  • Pretending to be your friend or your “advocate”
  • Witholding information they know would negatively implicate their policyholder
  • Offering money almost immediately to settle a claim quickly
  • “Low-ball” or “pennies-on-the-dollar” offers
  • Denying legitimate claims
  • Having you agree, in writing, to the release of medical files or history
  • Using your own words, often taken out of context, against you
  • Taking a recorded statement early, before you have retained an attorney
  • Having you sign, or e-sign, anything before your attorney has reviewed it

Regardless of tactics, the goal is always the same; compel vulnerable and financially-compromised claimants into accepting less-than-fair compensation for their injuries.

TriMark Legal Funding exists so you don’t have to fall prey to those sorts of tactics.

Have Questions?
Call and speak with one of our funding experts today.

How Lawsuit Loans Work

TriMark Legal Funding specializes in helping personal injury accident victims.
Our non-recourse legal funding is a simple 3-step process:

1. Apply for Funding

You can either apply online or call us toll-free at (877) 932-2628. We’ll answer all of your questions and gather some basic facts about your case.

2. Review & Approval

Our team will work directly with your attorney to review your case. Approvals can happen as quickly as 1 hour after receipt of all required information.

3. Receive Cash

A funding agreement is sent via DocuSign. After signed copies are returned, your cash is sent to you by wire transfer or FedEx Overnight.


Apply For Lawsuit Funding Now

Are you ready to move your life in a more positive direction?

TriMark Legal Funding is excited to help you through this difficult time. We’ve helped thousands of people in similar circumstances, and we appreciate the opportunity to help you too.

It’s free to apply, and it only takes a minute. Best of all, you could receive the money you need as quickly as tomorrow. You can apply online or call (877) 932-2628, and one of our friendly representatives will be happy to take your application right over the phone.

Lawsuit funding from TriMark is just pure financial help, right when you need it most. And approvals can happen so fast that if you apply today, you could receive cash tomorrow.

When you choose TriMark Legal Funding, you’re in excellent hands, and we’ve always got your back.

Still have questions?

Call (877) 932-2628 and speak with one of our legal funding experts.

* Word-Use Disclaimer

Legal funding is not a loan. It is the non-recourse purchase of an equitable lien in plaintiffs’ legal claims. Words such as ‘loans,’ ‘lending,’ ‘borrow,’ etc., are used for marketing purposes only.
More info

TriMark Legal Funding LLC
1056 Green Acres Rd #102
Eugene, OR 97408

Exit mobile version