Get answers to common questions about how lawsuit funding works, who qualifies, and what to expect throughout the process.
Pre-settlement funding is a non-recourse cash advance provided to plaintiffs who have a pending personal injury lawsuit. Unlike a traditional loan, pre-settlement funding does not require monthly payments, credit checks, or personal liability. The funding company purchases a small portion of the expected settlement proceeds, giving you immediate cash to cover living expenses while your case is litigated. If your case is unsuccessful, you owe absolutely nothing back. This form of litigation funding helps level the playing field so you can pursue the full value of your claim without financial pressure.
The process begins when you submit a simple application with basic information about your case. Our underwriting team then contacts your attorney to review the case details, including liability, damages, and the expected settlement timeline. Once we evaluate the merits of your claim, we present you with a funding offer that outlines the advance amount and fee structure. If you accept, funds are typically wired to your bank account within 24 to 48 hours. Repayment only occurs when your case settles or you receive a court judgment in your favor.
No, pre-settlement funding is not a loan. It is a non-recourse advance against your pending lawsuit proceeds. With a loan, you are personally liable for repayment regardless of outcome, and it typically involves credit checks and monthly payments. With pre-settlement funding, repayment is contingent solely on a successful case outcome. There are no monthly payments, no credit score requirements, and no personal guarantees. If you lose your case, the funding company absorbs the loss entirely, making this a risk-free financial solution for plaintiffs in need.
Levalera funds a wide range of personal injury case types, including motor vehicle accidents, truck accidents, motorcycle accidents, medical malpractice, slip and fall injuries, premises liability, product liability, workplace injuries, wrongful death, and dog bite cases. Generally, any case where another party is liable for your injuries may qualify for lawsuit funding. If you are unsure whether your case qualifies, we encourage you to apply or reach out to our team for a free consultation.
Any plaintiff with a pending personal injury lawsuit and active legal representation may be eligible for pre-settlement funding. Eligibility is based on the strength and expected value of your case, not your personal financial situation. Whether your case involves a car accident, medical malpractice, or workplace injury, our team will evaluate the merits to determine if you qualify. There are no employment requirements, income verifications, or asset checks involved in the application process.
No, your credit score is completely irrelevant to the pre-settlement funding process. Because this is non-recourse litigation funding and not a traditional loan, approval is based entirely on the merits of your pending lawsuit. We do not pull credit reports, check your credit history, or consider your current financial standing. Plaintiffs with bad credit, no credit, prior bankruptcies, or existing debt obligations are all welcome to apply. The only thing that matters is the strength of your case.
Yes, in many cases you can receive additional pre-settlement funding even if you already have an existing advance from another company. This is sometimes called second-position or additional funding. Our underwriting team will evaluate your case value, the existing lien amounts, and the remaining equity in your claim to determine if additional lawsuit funding is feasible. If there is sufficient case value to support another advance, we can structure a competitive offer for you.
Yes, you must have an attorney actively representing you in your personal injury case to qualify for pre-settlement funding. Your attorney plays a critical role in the process because we need to verify case details, review documentation, and confirm the expected settlement timeline. We work directly with your legal team to make the process as smooth as possible without interfering with case strategy. If you do not yet have an attorney, we recommend finding qualified legal representation before applying.
The amount of pre-settlement funding you can receive depends on the estimated value of your case. Typical advances range from $1,000 to $500,000 or more for high-value claims. Our underwriting team evaluates factors like liability strength, the severity of your injuries, medical expenses, lost wages, and the expected settlement range. Generally, we advance between 10% and 20% of the anticipated case value. This ensures you receive meaningful financial support while preserving the majority of your settlement proceeds.
Levalera charges a transparent, competitive fee structure that is clearly disclosed before you accept any funding offer. Pre-settlement funding fees are typically structured as a flat rate or compounding rate applied to the advance amount over time. A small processing fee may apply to cover administrative and document preparation costs. We pride ourselves on offering some of the lowest rates in the litigation funding industry. Every fee is outlined in your funding agreement so there are no surprises when your case settles.
Repayment of pre-settlement funding happens automatically when your case settles or when a court awards a judgment in your favor. You never make monthly payments or out-of-pocket payments during the litigation process. When your case resolves, your attorney distributes the settlement proceeds and pays the funding company directly from your settlement before you receive the remaining balance. This means repayment is completely hands-off for you and only occurs upon a successful outcome.
If your case is unsuccessful and you do not receive a settlement or court judgment, you owe absolutely nothing. This is the fundamental benefit of non-recourse pre-settlement funding. The funding company assumes all the financial risk, not you. There will be no collections, no debt on your record, and no obligation to repay any portion of the advance. Levalera absorbs the loss entirely, which is why we carefully evaluate each case before providing funding.
Applying for pre-settlement funding with Levalera is fast and straightforward. You can start by completing our online application, which takes less than five minutes. Simply provide your name, contact information, attorney details, and a brief description of your case. Our team reviews every application promptly and will reach out to your attorney to gather additional case information. There is no cost or obligation to apply, and you can check on your application status at any time.
Most pre-settlement funding applications are reviewed and approved within 24 hours of submission. In some cases, if all documentation is readily available from your attorney, approval can happen the same day you apply. More complex cases, such as medical malpractice or product liability claims, may require additional review time of 48 to 72 hours. Our team works quickly to evaluate your case because we understand that plaintiffs seeking litigation funding are often in urgent need of financial support.
Once your pre-settlement funding application is approved and you sign the funding agreement, funds are typically wired to your bank account within 24 hours. In many cases, plaintiffs receive their money the same business day. We use direct bank wire transfers for the fastest possible delivery. The entire process from application to cash in your account can take as little as 24 to 48 hours, depending on how quickly your attorney provides the necessary case documentation.
The initial application requires minimal documentation from you. We need your basic contact information, the name and contact details of your attorney, and a brief summary of your case. Once we begin the underwriting review, our team works directly with your attorney to obtain case-related documents such as the complaint, medical records, police reports, and any relevant correspondence. You typically do not need to gather or submit legal documents yourself, making the process as hassle-free as possible.
No, pre-settlement funding should not negatively affect your case or the outcome of your settlement. The opposing party and their insurance company are not informed about your funding arrangement, so it cannot be used against you in negotiations. In fact, litigation funding often strengthens your position because it removes the financial pressure to accept a lowball settlement offer. With your expenses covered, you and your attorney can pursue the full value of your claim without rushing to resolve the case.
Yes, your attorney is an essential part of the pre-settlement funding process. We contact your legal team to verify case details, review documentation, and confirm the expected settlement value and timeline. Your attorney must sign an acknowledgment letter confirming the funding arrangement and agreeing to repay the advance from your settlement proceeds. This protects both you and the funding company. Rest assured, we respect the attorney-client relationship and never interfere with legal strategy or case management.
The tax treatment of pre-settlement funding depends on the specifics of your case and your individual tax situation. Generally, personal injury settlements for physical injuries are not considered taxable income under federal tax law, and the pre-settlement funding advance would typically follow the same treatment as the underlying settlement. However, tax laws vary by state and circumstance, so we strongly recommend consulting with a qualified tax professional or CPA to understand how lawsuit funding may affect your specific tax obligations. Levalera does not provide tax advice.
Yes, many plaintiffs receive additional pre-settlement funding as their case progresses and their financial needs evolve. If your case has sufficient value to support a larger total advance, you can apply for supplemental funding at any time. Our team will re-evaluate the current status of your case, including any updates on liability, medical treatment, and settlement negotiations, to determine if additional litigation funding is available. The application process for additional funding is typically even faster since we already have your case information on file.
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