What it is, and what you need to know
Pre-Settlement Funding: How It Works, What It Costs, and What to Know
If you qualify, pre-settlement funding gives you money while your legal case is still pending. It can cover rent, utilities, groceries, transportation, medical costs and other bills while you wait.
At ClaimAngel, this funding is called Case Equity. The review focuses on your case, not your credit.
Key Takeaways
- Pre-settlement funding gives eligible plaintiffs money while their case is still pending.
- It's non-recourse: if you lose your case or receive no settlement, you owe nothing.
- Cost structure matters. The rate type, compounding, fees and any cap can lead to very different repayments over time.
- ClaimAngel uses one set 27.8% simple rate, no compounding, and a hard cap at 2× your draw across the 25+ vetted funders on its marketplace.
- The right choice isn't always the largest amount. It's the one that covers your need and protects the most of your recovery.
Guide
What Is Pre-Settlement Funding?
Pre-settlement funding gives eligible plaintiffs money while their case is still pending. Through ClaimAngel it's non-recourse, with no monthly payments. Repayment comes from a successful case recovery.
It bridges a timing gap. Your case may have value, but you can't access that value until settlement day. Meanwhile, your bills are due now.
Guide
Why Do Plaintiffs Consider Pre-Settlement Funding?
Because a case runs on a legal timeline, and your bills run on a monthly one. An injury can cut your income and add new costs, while the old bills keep coming.
Common pressure points include:
- Rent or mortgage payments
- Utilities and groceries
- Transportation and insurance
- Medical and recovery costs
- Childcare and other household costs
- Credit card payments and other existing bills
Your case may still be in treatment, investigation, negotiation or litigation while those bills come due. Funding can give you breathing room, so decisions about your case rest on the case and your attorney's advice, not on this month's bills.
It doesn't guarantee any case outcome, and it isn't right for every plaintiff.
Guide
What If Your Case Is a Personal Injury Claim?
Start with the Personal Injury Funding page. Personal injury is ClaimAngel's primary funding category, and that page leads to guides for car accidents, truck accidents, slip and fall, medical malpractice, product liability, wrongful death and other injury claims.
Not an injury case? Use the Case Types directory to see the other claims ClaimAngel supports.
Guide
How Does Pre-Settlement Funding Work?
It works in five basic steps:
You have an active legal case
Funding is tied to an existing claim, so the case itself gets reviewed.
Case information is confirmed
Your attorney confirms your case is active, and the funder gathers the details it needs.
Your request is reviewed
The funder evaluates your case and decides whether to offer funding.
You review the funding option
If your case qualifies, you may get an offer for a set amount on defined terms. You don't have to accept it.
Repayment is handled when the case resolves
If you accept and your case later recovers money, repayment comes from the case proceeds under your funding agreement.
The key step is between approval and acceptance. Before you sign, know what you'll receive, what it may cost, and how repayment works.
Guide
Who May Qualify for Pre-Settlement Funding?
Not every case qualifies, and case type alone doesn't decide it. Funders look at each case on its own. Two people with similar accidents can still differ in:
The claim itself
Available insurance
Expected recovery
Case stage
So their funding options can differ too.
Guide
How Fast Can You Get Pre-Settlement Funding?
There's no single timeline. Funding moves faster when your case information is ready and your attorney can confirm it promptly. Complex cases or missing information take longer.
If a bill is coming due, ask at the start what information is needed, and check that your attorney has it.
Guide
What Happens If You Lose Your Case?
If you lose your case
$0
you owe nothing
Pre-settlement funding through ClaimAngel is non-recourse. If you lose your case or receive no settlement, you owe nothing.
The written agreement controls the details. Before you sign, make sure you understand:
- What triggers repayment
- How repayment is calculated
- What happens if there is no recovery
- How repayment will be handled if the case resolves
If a term is unclear, ask before you sign. Here, clarity matters more than speed.
Guide
How Much Pre-Settlement Funding Can You Get?
There's no set amount. What you're offered depends on your case and the information reviewed.
The better question is "How much do I actually need?" Funding has a cost, so taking more than you need can increase what you repay from your case. Cover the immediate problem, and no more.
Guide
What Does Pre-Settlement Funding Cost?
It depends on how the cost is built: the rate, whether it compounds, any fees, how long your case takes, and whether repayment is capped. Two people who draw the same amount today can repay very different totals.
So don't compare offers only by how much you can get today. Ask:
- How is the cost calculated?
- Does the cost compound?
- Are there additional fees?
- How often does the balance increase?
- Is there a maximum amount you can ever be required to repay?
- What would my repayment look like if my case takes 6, 12, 18, or 24 months?
How ClaimAngel Approaches Cost
One set 27.8% simple rate. No compounding. A hard cap at 2× your draw.
ClaimAngel sets these terms for Case Equity, and the 25+ vetted funders on the marketplace fund under them. A simple rate means the cost is figured on the amount you drew, not on a growing balance. The cap is a ceiling on how far repayment can grow.
Even so, ask what you'd repay in dollars at different points in your case. That number, not the advertised rate, is what comes out of your recovery.
Guide
Why Does Your Lawyer Need to Be Involved?
Funding is tied to your legal case, so your attorney confirms your case is active, and funders evaluate your case merits.
If money is tight at home, don't assume your lawyer knows. Tell them.
Explain that the injury and the length of the case are straining your finances, that you're considering pre-settlement funding, and that you want to know if it's an option for your case.
Guide
When Does Pre-Settlement Funding Make Sense?
When getting money now is worth what you may repay later from your case. Being available doesn't make it the right choice.
When it may help
- Your injury has cut your income
- Essential bills are getting hard to cover
- You're falling behind on rent, mortgage, utilities, transportation or other necessities
- Injury-related costs are adding pressure
- Your need for money is pushing you to resolve the case sooner
When it may not be needed
- You can manage your expenses while the case is pending
- You have another suitable option that costs less
- You'd be taking far more than you need
- You don't understand the repayment terms
- The cost is bigger than the short-term problem it would solve
Other options include savings, help from family, payment arrangements or other financing. Each has its own costs and tradeoffs.
If funding is the right fit, the next question is which structure leaves you best off when your case resolves. Compare offers on the points below.
Compare
What Should You Compare Before Choosing a Funder?
Compare what each offer will actually cost you, not just who can fund you first. Funding options are not all built the same way.
| What to Compare | Why It Matters | ClaimAngel Approach |
|---|---|---|
| Pricing structure | Determines how the cost grows while your case is open. | One set 27.8% simple rate |
| Compounding | Compounding charges cost on a growing balance. | No compounding |
| Repayment cap | A cap sets a ceiling on how much you can be required to repay. | Hard cap at 2× your draw |
| Terms across funders | Different terms from each funder make offers hard to compare. | 25+ vetted funders operate under ClaimAngel's set terms |
| Transparency | You should know the price and terms before you agree. | Published rate and core terms |
| Total potential repayment | What matters is how much may come out of your recovery. | Review the dollar impact before accepting |
| Attorney confirmation | Funding is tied to your case, so its status must be confirmed. | Your attorney confirms your case is active |
The goal: weigh what you get today against what you may give back from your recovery.
FAQ
Frequently Asked Questions About Pre-Settlement Funding
Does ClaimAngel Support Personal Injury Cases?
Yes. Personal injury is ClaimAngel's primary funding category. Use the Personal Injury Funding page to find your injury case type, or the Case Types directory for other supported claims.
Can pre-settlement funding be used for regular household bills?
Yes. Plaintiffs often consider it when an injury makes everyday bills hard to cover: rent or mortgage, utilities, groceries, transportation, childcare and other household costs while the case is pending.
Can I receive additional funding later if my case is still pending?
Possibly, but it isn't automatic. The case would be reviewed again, and any added amount increases what you may repay from your recovery.
What information will my attorney need to provide?
Your attorney confirms your case is active, and funders evaluate your case merits. Funders may also ask about the claim and its status.
Is pre-settlement funding available in every state?
Review the rules that apply where your case is being handled in the state laws guide.
Next
What Should You Do Next?
Ready to choose? Look past "Can I get funding?" Ask what it will cost and how much of your recovery you would give back.
See how ClaimAngel works, then compare it with your other options.