You have been injured and filed a lawsuit to get the compensation you deserve. But lawsuits take months, sometimes years and while you wait, the bills do not stop. Medical expenses keep piling up, rent is due every month, and you may be unable to work. This financial strain can push you into accepting a settlement far less than what your case is worth.
This is the reality for thousands of plaintiffs each year. When facing this pressure, one of the most common questions is “how many pre-settlement loans can I get?” We understand that you may need a financial lifeline to keep moving forward without sacrificing your claim’s value, and that’s where pre-settlement funding can help.
What Are Pre-Settlement Loans?
A pre-settlement loan is a term often used by the public, but it is not a loan in the traditional sense. Instead, it is a non-recourse cash advance based on your anticipated settlement. If you lose your case, you owe nothing, and the repayment comes only from your settlement, not from your personal finances.
With this funding, you can get cash now to cover essential expenses like rent, medical bills, and groceries. This gives you the breathing room to let your attorney negotiate for the maximum settlement, without the fear of financial ruin forcing you into a quick, unfair settlement.
The concept is straightforward, the lender evaluates your case, determines its potential settlement value, and offers you an advance on a portion of that value.
Who Qualifies?
While eligibility varies slightly between lenders, most require that you have an active lawsuit, represented by an attorney on a contingency fee basis, and have a strong case with a likelihood of success. If you meet these criteria, your credit score and employment history do not matter. The decision is based entirely on the merits of your case.
When to Use It
People use pre-settlement funding for a variety of reasons, like
- Paying overdue medical bills from injury treatment
- Covering rent or mortgage payments during recovery
- Paying for groceries and household expenses
- Covering transportation or childcare costs
- Preventing utilities from being shut off
In short, pre-settlement funding can bridge the financial gap between now and when your case concludes.
Can You Get More Than One Lawsuit Loan?
Yes, it is often possible to receive more than one pre-settlement advance during your case. Many plaintiffs get an initial advance early in their case, then later apply for a second or even third advance if their financial needs continue.
The primary factor is the size of your potential settlement. The higher the expected value of your case, the more room there is for multiple advances. Lenders also consider how much you have already borrowed.
Think of your settlement as a pie. The bigger the pie, the more slices you can cut. However, each slice you take reduces what is left, and lenders must ensure that there will still be enough to repay them once your case resolves.
How Many Times Can You Get a Pre-Settlement Loan?
There is no set limit across the industry. In theory, you could get multiple advances, but it is not unlimited.
What Affects How Many Pre-Settlement Loans You Can Get
The number of cash advances you can receive during your case depends on several key elements. Lenders carefully review your claim’s strength, value, and progress before approving additional funding.
The Total Estimated Value of Your Case
Cases with higher potential settlement amounts can typically support more funding. Lenders assess how much your case might be worth to ensure advances do not exceed a safe percentage of the final payout.
The Amount You Have Already Borrowed
If you have already taken out previous advances, the available amount for future funding decreases. Lenders want to keep enough margin to recover their investment after fees and repayment.
Your Attorney’s Cooperation
Your lawyer plays a crucial role in securing each advance. Lenders require direct communication with your attorney to verify case details and confirm their consent before releasing funds.
The Stage of Your Legal Case
The closer your case is to settlement or trial resolution, the easier it is for lenders to predict the outcome. Later stages often mean more certainty, which can make it easier to qualify for additional advances.
The Lender’s Risk Assessment
Lenders evaluate the overall risk of not recovering their advance. This includes the strength of your evidence, liability clarity, and likelihood of a favorable settlement or judgment.
Why Lenders Limit the Number of Loans
Lenders are not trying to deny you money unnecessarily; they simply need to ensure that there will be enough left from your settlement to cover all advances and associated fees. If your settlement value is too low or you have already borrowed heavily, a lender may decline additional funding.
Why a Lawsuit Loan Might Be Denied
Even if you received one advance before, a second application is not guaranteed. These are the most common reasons for a denial.
Case Weakness
If new information surfaces that weakens your case, for example, unclear liability or disputed damages a lender may reconsider the risk.
Low Case Value
If your expected settlement has decreased due to new developments or evidence, the available “pie” may no longer support additional funding.
Previous Loans
If you have already taken a significant advance, especially with high fees, the lender may believe there is not enough left for another loan. This is particularly relevant if you have been denied a second pre-settlement loan before, as it may indicate the case is already over-leveraged.
What to Do Before Applying for a Second Loan
If you are considering applying for another advance, the following are the steps you should take.
Talk to Your Attorney
Your attorney should be your first point of contact. They understand the strength of your case, the estimated timeline, and the potential settlement amount.
Tell Your Attorney You Are Applying
Your attorney’s cooperation is essential in the funding process, so transparency is key.
Budget Carefully
Only borrow what you truly need. Taking more than necessary can significantly reduce your net settlement.
Mini-Checklist Before Applying:
- Review your monthly expenses
- Identify essential costs (rent, utilities, food, medical care)
- Determine the exact amount you need to borrow
- Avoid borrowing for non-essential purchases
FAQs
Can I get more than one pre-settlement loan?
Yes, if your case value supports it. Many plaintiffs receive multiple advances during a case, as long as there’s enough projected settlement to cover repayment.
How many pre-settlement loans can I get during my case?
There’s no industry-wide limit, but the number depends on your expected settlement amount, how much you’ve already borrowed, and your attorney’s cooperation.
What factors decide if I can get another lawsuit loan?
Key factors include your case’s estimated value, the amount you’ve already received, the stage of your lawsuit, and your lender’s risk assessment.
Can I apply with a different funding company?
Yes, but in most cases, your first lender must be repaid before a new lender can approve funding on the same case.
Do I have to tell my attorney about a pre-settlement loan?
Yes. Lenders require your attorney’s participation to confirm case details and sign necessary documents before releasing funds.
Is getting a second lawsuit loan a good idea?
It can be helpful if you need essential living expenses covered. However, borrowing more can reduce your final settlement, so weigh the costs carefully.
Get a Free Consultation Today
So, how many pre-settlement loans can you get? The answer depends on your case’s strength, settlement value, and how much you have already borrowed. In many cases, multiple advances are possible, but it is important to borrow strategically.
If you are struggling to make ends meet while your lawsuit is pending, do not wait. Our team can review your case and let you know exactly how much funding you may qualify for often within hours. Call us now (248 353-8830) or apply online for a free, no-obligation consultation. Get answers today and take control of your financial stability while your case moves forward.
