Pre-settlement funding  or lawsuit loan does not typically impact your attorney’s fees. When you obtain a cash advance from a funding company like Tribeca Lawsuit Loans, your attorney’s fees remain based on the agreed terms or a percentage of the settlement amount.

Definition of Pre-Settlement Funding

Pre-settlement funding is a financial arrangement where a funding company provides lawsuit cash advances to plaintiffs involved in ongoing lawsuits. In return, plaintiffs agree to repay the advance, along with fees and interest, once their case concludes successfully.

How Pre-Settlement Funding Affects Your Attorney’s Fees

One critical aspect of pre-settlement funding, also known as lawsuit funding is how it impacts your attorney’s fees. Unlike traditional loans, lawsuit settlement loans are non-recourse, meaning you only repay the advance if you win your case. Consequently, the funding company assumes the risk of losing the investment if your case is unsuccessful.

Typically, your attorney’s fees remain unaffected by lawsuit funding. Irrespective of whether you receive financing, your attorney is still entitled to the agreed-upon fees for defending you. The funding company is only concerned with the repayment of the cash advance, not your attorney’s compensation.

Pros and Cons

Pros

• Financial Relief: Pre-settlement funding helps cover immediate expenses during the legal process.
• Non-Recourse: If you lose your case, you aren’t obligated to repay the settlement advances.
• No Impact on Settlement: The funding company’s involvement does not influence settlement negotiations.

Cons

• Higher Costs: Legal financing fees and interest rates can be higher than traditional loans.
• Potential Lower Settlement: Accepting early funding might prompt you to settle for less than your case is worth.

Frequently Asked Questions Regarding Pre-Settlement Funding and Attorney’s Fees

What is the cost?

Pre-settlement funding fees vary among companies but are usually a percentage of the advance.

How does it affect my settlement?

Tribeca’s involvement is separate from your settlement negotiations, so it should not directly affect the settlement amount.

What happens if I lose my case?

If you lose, you generally owe nothing to us, as it is a non-recourse arrangement.

Can I receive lawsuit funding if I have bad credit?

Yes, pre-settlement funding from Tribeca is based on the merits of your case, not your credit score.

Can it affect my settlement negotiations?

No, lawsuit funding typically does not affect your settlement negotiations. The funding company’s involvement is separate from the negotiations between you and the opposing party. Your case’s merits and the parties desire to negotiate a settlement will determine the basis of your settlement negotiations.