No one plans to file a lawsuit. One day, you’re working and living your normal life. Then an accident or injury throws everything off track. You may be unable to work, struggling to get back on your feet, and watching bills pile up while the cost of living keeps rising.
Lawsuits and settlements can take months or even years to resolve. But rent doesn’t wait. Groceries don’t get cheaper. Medical bills keep arriving, whether your case is finished or not. That frustration is often what leads people to ask: “What is pre-settlement funding? How does it work? And is it safe?”
Pre-settlement funding, also known as a lawsuit loan alternative, provides injured plaintiffs with access to a portion of their future settlement before their case is resolved. These funds can be used to cover everyday expenses like rent, groceries, or medical care while your law firm continues handling negotiations and court filings.
At Liberty One Legal Funding, we offer pre-settlement funding for these moments. Once your law firm confirms representation, our team reviews your case, explains every term clearly, and delivers your funds. No credit checks. No endless forms. Just a fast, transparent way to stay steady while your lawyer keeps fighting for the full value of your claim.
Key Points: Pre-Settlement Funding at a Glance
- What it is: Access a portion of your future settlement before your case is resolved.
- Not a loan: Non-recourse funding — you repay only if your case settles or wins.
- No credit checks: Approval is based on your case and attorney representation, not credit or income.
- Fast decisions: Most approvals happen within one business day.
- Funds in as little as 24 hours: Delivered by wire, ACH, or overnight check.
- Use funds for daily needs: Rent, groceries, utilities, medical care, or rehabilitation.
- Your attorney stays in control: Helps avoid rushed or low settlements.
What Is Pre-Settlement Funding?
The longer answer to “What is pre-settlement funding?” is straightforward: It’s a way for injured plaintiffs to access money tied up in their lawsuit before the case is finished.
Unlike traditional loans, which rely on credit scores and pay stubs, pre-settlement legal funding depends entirely on the strength of your case to unlock part of the money tied up in your lawsuit. It isn’t a bank loan. It doesn’t care about your credit score. It doesn’t punish you for being out of work because of the very injury you’re suing over. It looks at one thing: Do you have an attorney, and does your case have real value under the law? If the answers are yes, a funder can advance you money now and get repaid later from your settlement.
Pre-settlement funding is also called non-recourse funding because the risk sits with the funder, not you. If you win or settle your case, you repay the advance from the settlement proceeds. If the case fails, you owe nothing. That structure is what makes this useful for injury victims living off savings, disability checks, or nothing at all. It’s not a shortcut; it’s a stabilizer.
How Does Pre-Settlement Funding Work?
The following is how pre-settlement funding works:
- You apply through a short online form or a quick phone call;
- Liberty One contacts your law firm to confirm representation and gather case details;
- The law firm verifies basic information about your injury and potential compensation;
- Liberty One reviews records such as accident reports and medical documentation;
- Once Liberty receives and reviews the necessary information, we make a funding decision or approval, typically within one business day; and
- After the agreement is fully signed and executed, funds are released by wire, ACH, or overnight check, in as little as 24 hours.
From there, your law firm continues handling the case as usual. When the case resolves, the law firm repays Liberty One directly from the settlement, and you receive the remaining proceeds. This structure helps prevent financial stress from forcing quick or low settlements, allowing you to focus on recovery rather than day-to-day financial pressure.
Ultimately, you only repay the funds if your law firm wins or negotiates a settlement. If the defendant prevails or the case ends without compensation, you owe nothing. There are no monthly payments or bills to manage, no credit checks, no compounding interest, and no penalties hidden in the fine print; just a single, written agreement that explains every term in plain language.
Why Do People Turn to Legal Funding Instead of Loans?
Most accident victims face rising costs and disappearing income. Legal funding exists to fill the gap between your bills and lost earnings without trapping you in debt or juggling fees and credit checks from loans.
Benefits include:
- Keeping up with rent, utilities, or car payments;
- Paying medical and rehabilitation bills immediately;
- Avoiding payday lenders and compounding interest; and
- Letting your attorney negotiate from strength, not urgency.
Legal funding is not a loan. Instead, each advance creates breathing room for your law firm to develop evidence, gather expert testimony, and pursue the settlement your case actually deserves.
Is Pre-Settlement Funding Safe?
Legal funding is a recognized, regulated financial tool governed by contract and consumer-protection laws. Companies like Liberty One follow strict ethical guidelines set by the Alliance for Responsible Consumer Legal Funding (ARC) and maintain Better Business Bureau accreditation.
Moreover, each client receives a transparent, fixed-rate agreement reviewed by their attorney. There are no compounding rates, no hidden charges, and no fine-print tricks. The entire structure exists to help plaintiffs stand their ground against slow legal timelines and powerful insurers.
What Types of Cases Qualify for Pre-Settlement Funding?
Pre-settlement funding is available for many types of civil lawsuits where an injured plaintiff is represented by a law firm. Common qualifying cases include:
- Car and truck accidents;
- Motorcycle and pedestrian accidents;
- Workplace and construction injuries;
- Slip and fall, trip and fall, and premises liability cases;
- Sexual abuse cases;
- Product liability claims; and
- Medical malpractice and serious injury cases.
Eligibility depends on the strength and status of the case, not your credit, income, or employment history. Liberty One works directly with your law firm to evaluate whether funding is available.
FAQs
What’s the Difference Between Pre-Settlement Funding and a Loan?
A loan requires repayment, no matter the outcome. Pre-settlement funding is non-recourse, which means you repay only if your attorney wins or settles your case. If the claim fails, you owe nothing.
How Does Pre-Settlement Funding Work for Personal Injury Cases?
Liberty One evaluates your law-firm verified case, determines the likely recovery amount, and advances part of that total immediately. You use the funds for everyday expenses or medical costs while your case progresses.
Who Qualifies for Pre-Settlement Funding?
Anyone with an active claim and legal representation may qualify. That includes car accidents, workplace injuries, product liability, premises negligence, and medical malpractice.
Can I Get Pre-Settlement Funding in My State?
Pre-settlement funding is available in most states, though availability and regulations vary by location. Liberty One works with law firms nationwide and can confirm whether funding is available where your case is filed. You can also explore our state-specific pages for more details.
How Long Does Pre-Settlement Funding Take?
Liberty One’s system is designed for efficiency. Most approvals happen within hours of receiving your law firm’s verification. Once approved, funds can arrive as soon as 24 hours or sometimes the same day for urgent cases involving rent deadlines or scheduled surgeries.
Do I Need My Attorney’s Approval to Apply for Pre-Settlement Funding?
Yes. Your law firm must verify your case and authorize the funding process to promote transparency and compliance. Liberty One communicates directly with your law firm throughout the process.
Why Should I Choose Liberty One Legal Funding?
When you’re recovering from an injury, life doesn’t stop to wait for a verdict. Liberty One gives you the space and stability to keep moving forward. We combine precision with empathy, offering:
- Clear, plain-language contracts;
- Consistent communication with a dedicated representative;
- Funds in as little as 24 hours;
- Options for direct payments to medical providers; and
- Support for families balancing recovery and daily costs.
Our mission is simple: Keep people stable while justice unfolds. Whether you’re coping with medical bills or lost wages, Liberty One Legal Funding helps you bridge the waiting period between injury and recovery.
Reach out to us today to start your application and see how quickly you can regain financial control while your law firm fights for what’s fair.
Disclaimer: Liberty One Legal Funding is not a law firm and does not provide legal advice. Clients should consult their attorneys about California law, federal regulations, and their individual case circumstances.