Lawsuit Cash Advances

At Fort Morgan Funding, we understand that the journey to justice can be long and challenging. When you're involved in a lawsuit, especially after an injury, the legal process can be long and financially draining. While you wait for a settlement, bills for rent, medical care, and daily necessities don't stop. A cash advance on your pending lawsuit, also known as pre-settlement funding, can provide the immediate financial relief you need to stay afloat and give your attorney the time required to fight for the full compensation you deserve. This guide explains how these advances work, who qualifies, and what you need to know before you apply.

What is a Cash Advance on a Pending Lawsuit?

At Fort Morgan Funding, we provide lawsuit cash advances as a powerful financial tool designed to support you during a challenging time. A lawsuit cash advance is not a traditional loan; it is a non-recourse financial transaction. This means Fort Morgan Funding advances you a portion of your potential future settlement money upfront, purchasing a share of that future settlement.

This financial support goes by several names, all referring to the same concept:

• Pre-settlement funding
• Lawsuit loan (though it is not technically a loan)
• Legal funding
• Settlement advance

Our primary purpose is to offer immediate financial assistance to plaintiffs who are struggling to cover expenses while their legal case is ongoing. It acts as a financial bridge, helping you manage costs without having to dip into savings or take on high-interest debt, so you can concentrate on achieving the justice you deserve.

The Most Important Feature: Pay Only If You Win

The defining characteristic of a lawsuit cash advance is its non-recourse nature. This makes the funding completely risk-free for you, the plaintiff.

Here’s what "non-recourse" means:

• Repayment is contingent on a successful outcome. You are only obligated to repay the advance if you win your case or receive a settlement.
• If you lose your case, you owe nothing. The funding company assumes all the risk. The advance is yours to keep, and you have no further obligation.
• There is no personal liability. The advance is secured by your anticipated settlement funds, not your personal assets like your home or car. No collateral is required.
• Your personal finances are not at risk. Because repayment is tied directly to your case's outcome, your income, credit score, or employment status are not factors in the repayment process.

This structure ensures that you can access needed funds without the fear of accumulating personal debt if your lawsuit is unsuccessful.

How the Lawsuit Funding Process Works

Securing a cash advance is typically a straightforward and efficient process designed to get you funds quickly.

1. Submit Your Application: The first step is to apply with a funding company. This usually involves completing a simple online form where you provide your contact information and basic details about your legal claim and your attorney.
2. Case Review and Attorney Cooperation: After you apply, the funding company will contact your attorney to obtain the necessary case documents. Your lawyer's role is to submit these documents and sign the Attorney Acknowledgment included in the funding agreement. The funding company, not the attorney, evaluates the case to determine eligibility and the potential advance amount.
3. Approval and Contract: If your case is approved, you and your attorney will separately receive the funding agreement to review and sign, often done electronically via DocuSign. Each party reviews the agreement independently to ensure understanding. This contract outlines the advance amount, all associated fees, and the total repayment amount due upon settlement. It is vital to read this document carefully.
4. Receive Your Funds: Once you sign the agreement, the funds are disbursed to you quickly, often within 24 to 48 hours.
5. Repayment from the Settlement: When your case has been finalized, your attorney will repay the funding company directly from the settlement proceeds.

After legal fees, case costs, medical expenses, and any other case-related liens are paid, the pre-settlement funding company is repaid from the net proceeds due to you, and you receive the remaining balance.

Who Is Eligible for a Lawsuit Cash Advance?

Eligibility for pre-settlement funding is not based on traditional lending criteria. Instead, it is determined by the strength and specifics of your legal claim.

Core Qualification Requirements

To qualify for a lawsuit cash advance, you generally must meet the following criteria:

• You have an active lawsuit or legal claim.
• You have hired an attorney. Your lawyer's cooperation is mandatory.
• Your attorney is working on a contingency fee basis, meaning they only get paid if you win the case.
• Your case has strong merits with a high probability of a successful settlement or verdict.
• You can demonstrate a clear financial need arising from the circumstances of your case (e.g., lost wages, medical bills).

No Credit Check or Employment Verification Required

A significant advantage of this funding is that your personal financial history does not matter. Since the advance is secured by your future settlement, funding companies do not perform:

• Credit checks
• Employment verifications
• Income verifications

Approval is based solely on the funding company’s evaluation of your lawsuit’s estimated value and strength, following their guidelines. We work with a diverse clientele, and it is important to understand that the evaluation process is based strictly on the funding company’s established criteria, which may be subject to misunderstandings if not clearly communicated.

Types of Legal Cases That Qualify for Funding

A broad range of civil litigation cases are eligible for advance funding, particularly those likely to result in a monetary settlement. While personal injury claims are the most common, funding is available for many case types.

Common Personal Injury Cases

• Auto Accidents: Car accidents, along with truck, motorcycle, and pedestrian accidents, often involve significant medical bills, vehicle repair costs, lost income, and other financial challenges while waiting for a settlement, making them prime candidates for lawsuit cash advances.
• Premises Liability: Such as slip and fall incidents.
• Medical Malpractice: Cases involving negligence by healthcare professionals.
• Workers' Compensation: Claims for injuries sustained on the job.
• Product Liability: Injuries caused by defective products.

Other Eligible Civil Cases

• Wrongful Death
• Civil Rights Violations
• Jones Act (maritime injuries)
• FELA (railroad worker injuries)
• Mass Torts

The key factors for eligibility are always the strength of your claim and the presence of legal representation.

Understanding the Costs and Repayment Terms

Transparency is key when considering a lawsuit cash advance. Before signing any agreement, you must have a complete understanding of all costs involved.

Fees and Interest Calculation

• Full Disclosure: A reputable funding company will clearly outline all fees and interest rates in the contract. There should be no hidden charges.
• Interest Rates: Interest can be calculated in different ways. Some companies use simple interest, while others may use compounding interest, which can grow the total repayment amount more quickly. Always ask for clarification on how interest is calculated.
• Review the Contract Separately: Both the claimant and attorney sign separately, often using Docusign. Make sure to carefully review the funding agreement on your own to fully understand the conditions, provisions, and total repayment amount.

The Repayment Process

Repayment is handled by your attorney after your case concludes successfully. The settlement funds are first sent to your lawyer's trust account. From there, disbursements are made in a specific order:

1. Attorney's fees and legal costs are paid.
2. Any outstanding medical liens or other related liens are paid.
3. The lawsuit cash advance (principal plus fees) is repaid to the funding company.
4. You, the plaintiff, receive the remaining balance of the settlement.

Choose Fort Morgan Funding as Your Trusted Funding Partner

At Fort Morgan Funding, we pride ourselves on being a leading and reputable partner dedicated to supporting you through your legal journey. The lawsuit funding industry has grown, making it essential to choose a company you can trust. Here's why Fort Morgan Funding should be your preferred choice:

• Transparent and Competitive Fees: We provide clear and upfront details about all fees. Our competitive rates ensure you get the best possible value.
• Direct Partnership: Work directly with Fort Morgan Funding, with no intermediaries, ensuring clear communication and avoiding unnecessary extra charges.
• Compassionate and Responsive Support: Our team is committed to patiently answering all your questions and guiding you every step of the way with empathy and professionalism.
• Trusted by Attorneys: We have built strong relationships with attorneys who recommend us for our reliability and ethical practices.
• Fast and Reliable Funding: We understand the urgency and work to provide funds quickly to help you focus on your recovery and case.

Why Your Attorney Cannot Provide a Cash Advance

Clients often ask if their lawyer can lend them money. However, professional and legal ethics rules strictly prohibit attorneys from providing direct financial assistance to their clients beyond covering litigation costs. This is to avoid creating a conflict of interest where the lawyer's financial stake could influence their legal judgment. Violating these rules can lead to disciplinary action. For this reason, plaintiffs must turn to external, third-party funding companies.

Getting Started with Your Funding Request

If you believe a cash advance on your pending lawsuit is the right choice for you, the process can begin today.

1. Gather Your Information: Have your personal contact details, your attorney's contact information, and basic facts about your case ready.
2. Apply Now: The quickest way to start is by completing a fast online application or calling a funding specialist directly.
3. Discuss Your Options: A representative will guide you through the next steps and work with your attorney to evaluate your claim.

Remember to check that the funding company provides services in your state. By taking this step, you can gain the financial stability needed to focus on your recovery and allow your legal team to secure the justice you deserve.