Personal injury lawsuits can be unpredictable. While many settle quickly, others face delays due to backed-up courts, complex negotiations, or defendants who drag their feet. For plaintiffs who have received a cash advance, this raises questions about how the extra time impacts their funding.
Common Reasons Your Case Might Be Delayed
First, it’s important to recognize that case delays are normal and often unavoidable. A case timeline can be extended for many reasons, including:
- The Discovery Process: This is the longest phase of many lawsuits. It involves collecting evidence, medical records, and witness statements (depositions). Scheduling and obtaining all this information can be slow.
- Negotiation Tactics: Often, the opposing side (like an insurance company) will intentionally drag out the process. This is a common tactic used to pressure a financially strained plaintiff into accepting a low, unfair settlement offer.
- Court Backlogs: In many jurisdictions, especially busy ones like California, the court systems are simply overloaded. Waiting for a hearing or a trial date can add months, or even years, to your timeline.
- Expert Witnesses: Complex cases often require testimony from medical or financial experts. Scheduling these highly sought-after professionals can be difficult and time-consuming.
- Changes in Your Medical Status: If your medical treatment is ongoing or you have not yet reached “maximum medical improvement” (MMI), your attorney may advise delaying settlement to ensure the full scope of your injuries is understood and included in the claim.
How Delays Affect Your Funding Agreement
When your case is delayed, the two biggest questions plaintiffs have are about payments and interest.
- You Still Make No Monthly Payments This is the core principle of non-recourse funding. It is not a loan. You are never required to make monthly payments, regardless of how long the case takes. Your personal income and credit are not at risk.
- Understanding Fee Accrual While you don’t make payments, the funding advance does accrue interest or fees over time, as specified in your agreement. A reputable funding agreement will clearly outline this fee structure (for example, whether it is simple or compounding) so there are no surprises. This accrued total is what is paid back directly from the settlement after your attorney’s fees and other case expenses are paid.
What If You Need More Financial Support During a Delay?
A delay doesn’t just add legal time; it adds financial pressure. If your initial funding advance has been depleted and your case is still ongoing, you may be able to apply for a second advance.
This is not automatic. The funding company will need to re-evaluate your case in cooperation with your attorney. They will review the case’s current strength, the updated estimated settlement value, and the total amount already funded. This review is done to ensure there is still likely to be enough money in the final settlement to cover all obligations (attorney fees, case costs, the original advance, and the new advance) while still leaving a substantial recovery for you.
The “Non-Recourse” Safety Net Remains in Place
No matter how long your case takes—even if it’s delayed for years—the “non-recourse” promise is your financial protection.
This means if your case goes to trial and you ultimately lose, you owe the funding company nothing. The advance and all accrued fees are forgiven. The risk of a delayed or unsuccessful case is carried by the funding company, not by you. This structure is specifically designed to give you peace of mind and the financial stability to reject lowball offers and allow your attorney the time they need to fight for the true value of your claim.
The Importance of Your Attorney
Throughout this process, your attorney is your most important partner. Maintain regular contact with your legal team and ask for updates on the case timeline and the specific reasons for any delays. Your attorney is also responsible for keeping the funding company informed of any major developments, which is essential if you are considering applying for additional funds.
Case delays are a frustrating but common part of the legal system. They do not, however, change the fundamental, protective nature of your pre-settlement funding.
Who is Fund Capital America?
Since 2006, Fund Capital America (FCA) has been a trusted leader in pre-settlement funding, providing cash advance loans to plaintiffs in personal injury and accident cases. Over the years, FCA has proudly served thousands of law firms and tens of thousands of clients, helping them navigate the financial challenges of litigation. While our core service is pre-settlement funding, we also offer a comprehensive range of services to support law firms and their clients from the beginning of the case to the final settlement check distribution.
Fund Capital America’s Services
In addition to pre-settlement funding, FCA provides a broad array of services designed to alleviate the financial and administrative burdens on injury victims, law firms, and medical professionals. Our services include:
- Pre Settlement Funding
- Policy Limits
- Doctor & Medical Facility Directory
- Doctor & Medical Facility Scheduling
- Language Services
- Investigation Services
- Medical Legal Finance
- Surgery Funding
- Medical Lien Funding
- Law Firm Funding & Law Firm Banking Services
- Law Firm Line of Credit
- Medical Receivables Financing
- Law Firm Services
Get the Legal Funding Support You Need in Just 5 Minutes!
Here’s how it works:
Fill out our application form: It takes just 5 minutes to provide the necessary details about your case.
Get prequalified: Our team will review your application and get back to you swiftly, often within hours.
Need assistance? Call us at the number provided for immediate support from our knowledgeable staff.
Don’t let financial stress prevent you from focusing on your recovery. Apply now to secure your lawsuit cash advance!
