When you’re in the middle of a personal injury lawsuit, financial pressure can mount quickly. Legal funding, also known as a “lawsuit cash advance,” is a tool many plaintiffs use to regain financial stability. One of the first questions plaintiffs ask is: “Does my case have to be worth a certain amount to qualify?”
While the answer varies between funding companies, the focus isn’t always on a simple minimum dollar amount. Some lenders may only review cases valued in the six figures, while others are more flexible.
How Lenders Determine Your Case’s Value
Your attorney and a funding company’s underwriting team will analyze several factors to estimate a realistic case value. This isn’t guesswork; it’s a careful assessment based on tangible details.
Key factors include:
- Clear Liability: How clearly and provably is the other party at fault?
- Severity of Damages: This includes documented medical bills, anticipated future medical costs, and lost wages.
- Strength of Evidence: The quality of documentation, police reports, witness testimony, and medical records.
- Defendant’s Insurance Policy: This is a crucial, practical factor. A case might have $500,000 in damages, but if the defendant’s insurance policy limit is $100,000, that is the most likely source of recovery.
- Case Precedent: What have California juries and courts awarded in similar, recent cases?
Your attorney provides these details to the funding company. The lender’s team then verifies this information to determine the case’s strength and potential.
A Core Insight: Non-Recourse Funding Means We Assume the Risk
It’s essential to understand that legitimate legal funding is non-recourse. This term is central to the industry and provides significant peace of mind.
“Non-recourse” means you only repay the funds if you win or settle your case. If you do not receive a favorable jury decision or a settlement, you owe Fund Capital America nothing.
The funding company assumes 100% of the risk. This is why our team must be diligent in evaluating your case—we only get paid if you do.
How Much Funding Can I Receive?
As a general guideline, plaintiffs are typically eligible to receive between 10% and 20% of their case’s estimated net settlement (the amount left after attorney’s fees).
For example, if your case is estimated to settle for $500,000, a funding company might approve an advance between $50,000 and $100,000.
This percentage might seem low, but it’s designed to be responsible. It ensures that when your case does settle, there is more than enough to cover the repayment, your attorney’s fees, and—most importantly—still leave you with the vast majority of your hard-won settlement.
Using Your Funds for What Matters
In most states, including California, there are no restrictions on how you use your legal funding. The advance is not meant to pay for your legal fees—your attorney typically handles those on contingency.
Instead, the funds are intended to cover the necessities of life during your lawsuit, which can drag on for months or even years. This allows you to reject a lowball settlement offer made by an insurance company trying to take advantage of your financial distress.
Plaintiffs use their funding to pay for:
- Rent or mortgage payments
- Utility bills
- Car payments or transportation
- Groceries
- Medical expenses and prescriptions
Ultimately, legal funding is a tool to relieve financial pressure, giving your attorney the time needed to fight for the full and fair value of your claim. Understanding how your case is valued is the first step in deciding if it’s the right option for you.
Who is Fund Capital America?
Since 2006, Fund Capital America (FCA) has provided pre-settlement funding to plaintiffs in personal injury and accident cases. FCA has served thousands of law firms and tens of thousands of clients, and it supports law firms and medical providers with case services from the start of a case to the final settlement.
Fund Capital America’s Services
Along with pre-settlement funding, FCA helps injury victims, law firms and medical providers with:
- Legal Funding
- Policy Limits Search
- Investigations
- Language Services
- Law Firm Services
- Medical Legal Funding
- Medical Records Retrieval
- FCA MedConnect
Apply in About 5 Minutes
Fill out the application: it takes about 5 minutes to share the details of your case.
Get prequalified: our team reviews your application and gets back to you quickly, often within hours.
Questions? Call us at (855) 870-2274. ¡Hablamos Español!
Don’t let financial stress keep you from focusing on your recovery. Apply now for a lawsuit cash advance.
