How Legal Funding Works

Legal funding provides plaintiffs with financial support while their lawsuit is still in progress. Because cases can take months or even years to resolve, many people struggle to cover essential expenses during litigation. Pre-settlement funding offers a non-recourse advance based on the strength of your case, allowing you to stay financially stable while your attorney works toward a settlement or verdict.

The process begins when you apply for funding and provide your attorney’s contact information. Funding companies work directly with your lawyer to review case details, liability, damages, and insurance coverage. Because approval is based on case strength—not credit score, income, or employment—legal funding is accessible to many plaintiffs who would not qualify for traditional loans. For more information on requirements, visit our guide on legal funding eligibility.

Once your attorney provides the necessary documentation, the funding company evaluates your case and determines whether an advance can be offered. If approved, funds are typically sent the same day. Repayment only occurs if your attorney wins or settles your case. If your lawsuit does not result in compensation, you owe nothing. This non-recourse structure protects plaintiffs from long-term financial risk and ensures that funding aligns with the merits of the case.

Legal funding can be used for rent, utilities, medical bills, transportation, groceries, childcare, and other essential expenses. Many plaintiffs rely on it to replace lost income after an accident, wrongful termination, or civil rights violation. If your case involves employment issues such as a hostile work environment or quid pro quo harassment, or if you are pursuing a civil rights discrimination claim, legal funding may help you stay afloat while litigation continues.

For authoritative information on civil litigation timelines and court procedures, you may find it helpful to review resources from the United States Courts and the Legal Services Corporation. These organizations provide trustworthy guidance that helps plaintiffs understand how lawsuits progress and why legal funding can be an important tool during long legal battles.