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Types of Cases Eligible for Pre-Settlement Funding
by
JG Wentworth
•
April 12, 2024
•
4 min
Pre-settlement funding, also known as lawsuit loans or litigation financing, provides plaintiffs with access to a portion of their anticipated settlement or judgment before their case is resolved. This financial tool can be a valuable resource for individuals involved in a range of legal disputes who need immediate financial assistance to cover expenses during the often lengthy litigation process.
However, not all types of legal cases qualify for pre-settlement funding. Understanding the types of cases that are typically eligible, as well as those that are generally ineligible, can help plaintiffs determine if this option is suitable for their specific situation.
Eligible Case Types
Personal Injury Cases
Personal injury cases, such as those involving car accidents, slip and fall incidents, or other accidents caused by the negligence of another party, are among the most common types of cases that qualify for pre-settlement funding. Lenders evaluate these cases based on the strength of the plaintiff’s claim, the severity of their injuries, and the anticipated value of the settlement or judgment.
Medical Malpractice Cases
Medical malpractice cases, in which a patient suffers harm due to the negligence or error of a healthcare provider, are also frequently eligible for pre-settlement funding. These cases can involve a wide range of issues, from misdiagnosis to surgical errors, and are often complex and contentious, making pre-settlement funding a valuable resource for many plaintiffs.
Wrongful Death Cases
Wrongful death cases, in which the family of a deceased individual seeks compensation for their loss due to the negligence or intentional acts of another party, may also be eligible for pre-settlement funding. These cases can arise from a variety of circumstances, such as car accidents, workplace accidents, medical malpractice, or violent crimes.
Workers’ Compensation Cases
Individuals who have been injured on the job and are seeking workers’ compensation benefits may also qualify for pre-settlement funding. These cases can involve a range of workplace-related injuries, from slip and fall accidents to occupational illnesses and injuries.
Commercial Litigation Cases
While less common, some commercial litigation cases, such as disputes over contract breaches, intellectual property rights, or other business-related legal matters, may also be eligible for pre-settlement funding.
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Often Ineligible Case Types
It’s important to note that not all types of legal cases qualify for pre-settlement funding. Some common examples of cases that are generally ineligible include:
Criminal Cases
Pre-settlement funding is typically not available for criminal cases, as the outcome of these cases is often less predictable and the potential for financial recovery is limited.
Family Law Cases
Cases involving divorce, child custody, or other family law matters are generally not eligible for pre-settlement funding, as the focus is on resolving personal and domestic issues rather than seeking monetary damages.
Bankruptcy Cases
Individuals who are pursuing bankruptcy proceedings are typically ineligible for pre-settlement funding, as the goal of bankruptcy is to restructure or discharge debts rather than obtain a monetary judgment.
Social Security Disability Cases
Claims for Social Security Disability benefits are not generally eligible for pre-settlement funding, as the process for these cases is administrative rather than judicial.
It’s important to note that the availability and terms of pre-settlement funding can vary depending on the specific lender, the details of the case, and the jurisdiction in which the case is being litigated. Plaintiffs should carefully research and evaluate their options to ensure they are making the best decision for their particular situation.
To Sum it Up
Pre-settlement funding is a valuable financial tool that can provide much-needed assistance to plaintiffs involved in a variety of eligible legal cases, including personal injury, medical malpractice, wrongful death, workers’ compensation, and certain commercial litigation matters. However, it’s crucial for plaintiffs to understand the types of cases that are typically ineligible, such as criminal cases, family law matters, bankruptcy proceedings, and Social Security Disability claims, to ensure they are pursuing the most appropriate financing solution for their specific legal situation.
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