If you’re involved in a lawsuit in Pennsylvania and facing financial challenges, pre-settlement funding can provide the support you need while awaiting your case’s resolution. Unlike traditional loans, this funding is non-recourse, meaning you only repay if you win. Understanding how pre-settlement funding works in Pennsylvania, the application process, and relevant state laws can help you make informed decisions during this challenging time.

What is Pre-Settlement Funding in Pennsylvania?

Pre-settlement funding, also known as a lawsuit cash advance, allows plaintiffs to access a portion of their anticipated settlement before their case concludes. Since this funding is non-recourse, you don’t have to repay the funds if you lose your case. Approval is based on the merits of your lawsuit and its likelihood of success—not your credit score or employment status.

This financial option can be crucial for individuals dealing with medical bills, rent, and daily expenses while awaiting a fair settlement.

Who Qualifies for Pre-Settlement Funding in Pennsylvania?

To be eligible for lawsuit funding in Pennsylvania, you must meet these basic requirements:

• Active Lawsuit: You have an ongoing personal injury case, such as those involving car accidents, medical malpractice, or premises liability.
• Legal Representation: You are represented by an attorney handling your case on a contingency fee basis (they only get paid if you win).
• Case Merit: Your case has a strong chance of success, as funding companies assess the potential settlement value before approval.

Benefits of Pre-Settlement Funding for Plaintiffs

Fast Access to Funds

Once approved, you can receive your cash advance in as little as 24-48 hours, which can be used for:

• Medical bills
• Rent or mortgage payments
• Utility bills
• Daily living expenses
• Legal costs

No-Risk Legal Funding – Pay Only If You Win

Since pre-settlement funding is non-recourse, you owe nothing if you lose your case.

Avoid Pressure to Settle Early

Insurance companies often delay settlements to pressure plaintiffs into accepting lower offers. With pre-settlement funding, you can hold out for a fair payout instead of settling for less due to financial strain.

How Pennsylvania Personal Injury Laws Affect Pre-Settlement Funding

Pennsylvania’s personal injury laws impact the compensation plaintiffs can receive and, consequently, the amount of pre-settlement funding they may qualify for.

Statute of Limitations in Pennsylvania

In Pennsylvania, the statute of limitations for personal injury claims is two years from the date of the injury. Failing to file within this period can result in losing your right to pursue justice and recover damages. 

For claims against government entities, plaintiffs must file a formal notice within six months before proceeding with a lawsuit. 

Comparative Negligence Rule in Pennsylvania

Pennsylvania follows a modified comparative negligence rule. This means:

• If a plaintiff is more than 50% at fault, they cannot recover damages.
• If a plaintiff is 50% or less at fault, their damages are reduced by their percentage of fault.

Example:

• If a plaintiff is awarded $100,000 but found 30% at fault, they will receive $70,000.
• If they are 51% at fault, they receive nothing.

Since lawsuit funding is based on the estimated settlement amount, cases with lower plaintiff fault percentages are more likely to qualify for higher funding amounts.

Compensation & Damage Caps in Pennsylvania

Pennsylvania personal injury cases include:

• Economic Damages: Medical expenses, lost wages, and property damage.
• Non-Economic Damages: Pain and suffering, emotional distress, and loss of enjoyment of life.

Notably, Pennsylvania does not cap damages in most personal injury cases, allowing plaintiffs to recover full compensation based on their losses.

Pennsylvania Laws & Regulations for Pre-Settlement Funding

Pre-settlement funding is legal and enforceable in Pennsylvania. While the state has champerty laws—which historically prohibited third-party funding of lawsuits—courts have generally upheld pre-settlement funding contracts, allowing personal injury victims to seek cash advances against their future settlements. 

It’s important to work with a reputable legal funding provider, review all terms, fees, and repayment conditions before accepting funding, and consult with your attorney before signing any agreements.

How to Apply for Pre-Settlement Funding in Pennsylvania

Applying for lawsuit funding is straightforward:

1. Submit an Application: Provide your case details and attorney’s contact information.
2. Case Evaluation: The funding company assesses the strength of your case and estimated settlement value.
3. Approval & Funding: If approved, receive cash within 24-48 hours.
4. Repayment Upon Settlement: If you win, repayment is deducted from your settlement. If you lose, you owe nothing.

Types of Cases Eligible for Pre-Settlement Funding in Pennsylvania

Pre-settlement funding is available for various personal injury cases, including:

• Motor Vehicle Accidents: Car, truck, motorcycle, pedestrian, and bicycle accidents.
• Workplace Injuries: Construction and industrial accidents.
• Medical Malpractice: Misdiagnosis, surgical errors, and medication mistakes.
• Premises Liability: Slip and falls, dog bites, and negligent security.
• Product Liability: Defective products and dangerous drugs.
• Wrongful Death: Fatal accidents caused by negligence.

If your case isn’t listed, contact us—we may still be able to help!

Why Choose Fort Morgan Funding for Pre-Settlement Funding?

• Fast Approvals & Funding: Receive funds within 24 hours.
• No Upfront Costs or Credit Checks: Approval is based on your case’s merits.
• 100% Risk-Free: No repayment if you lose.
• Transparent Terms: No hidden fees.
• Trusted by Plaintiffs Across Pennsylvania: Our commitment to client satisfaction sets us apart.