5 FAQs About Pre-Settlement Funding 

As one of the densely populated states in the US, Louisiana is home to a large number of car accidents each year. In 2019, there were 114,900 property damage-only crashes and 689 fatal crashes. Such accidents usually result in personal injury lawsuits.

If you’re considering filing a personal injury lawsuit in Louisiana, you may be wondering how you will cover the expenses while you wait for your case to settle. Pre-settlement funding can be an excellent option for plaintiffs who need financial assistance during the litigation process and are finding it hard to meet their daily expenses.

Here are the basic FAQs about Pre-Settlement Funding

  • What Is a Pre-Settlement Loan?

If you have been in a severe accident or injured at work, you may be wondering what a pre-settlement loan is and if it’s right for you. A pre-settlement loan is a cash advance on your pending lawsuit. It’s not a traditional loan, so there are no credit checks or monthly payments. You repay the loan if you win your case. If you lose, you don’t owe anything.

Pre-settlement funding can give you the money you need to pay bills and cover living expenses while you wait for the case to settle. It’s a risk-free way to urgently get cash without waiting for years or even decades for your case to go through the court system. For example, Louisiana has a claimant-friendly “pure comparative fault” rule, which allows financial recovery when the claimant was partly (even primarily) responsible for causing the car accident. There is also a statute of limitations for most personal injury claims and three years for wrongful death claims.

If your car accident claim takes a long time to settle, you may not have to wait longer to get the money you need.

  • How Does the Process Work?

Here are some eligibility criteria to consider when you are thinking about pursuing pre-settlement funding. They are:

  • The case must have merit and a good chance of winning.
  • You must have an attorney representing you in the case.
  • The defendant must have insurance.

If you wish to get this loan and think you might be eligible, the first step is to contact a pre-settlement loan company. The company will assess your case and determine if you qualify for it.

  • What Are the Benefits of Obtaining a Pre-Settlement Loan?

Louisiana is a poor state with high unemployment rates and low educational rates. The median household income is close to $51,000. In such a situation, pre-settlement funding becomes crucial. Some advantages of pre-settlement funding include:

  • You only have to repay the loan if you win your case.
  • Receive cash within 24-48 hours.
  • No employment verification is required.
  • Bad credit is not a factor.
  • How Much Money Can You Borrow?

A funding specialist will review your case and inform you how much money you qualify for. The amount will depend on factors such as:

  • The severity of your injuries.
  • How much time you have been unable to work.
  • The total amount of your medical bills.
  • Any other expenses related to your accident.
  • What Kind of Cases Are Eligible?

Louisiana pre-settlement funding is available for various cases, including personal injury, medical malpractice, wrongful death, and more. If you’re unsure whether your case is eligible, reach out to a pre-settlement funding company, and they will be able to let you know.


Whether you are considering a pre-settlement loan in Louisiana or elsewhere, it is essential to do your research and ask plenty of questions to gain clarity. Be sure to work with a reputable funding company with experience handling cases in your state. 


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