What Happens if You Lose Your Lawsuit After Receiving Funding?

If you've received pre-settlement funding from a company like Flash Legal Funding, you may be wondering what happens if you lose your lawsuit. Losing a lawsuit can be a difficult and stressful experience, especially if you’ve already received funding to cover your expenses during the legal process. However, if you obtained a non-recourse loan, you will not be responsible for repaying the funding if you lose your lawsuit.

What is Pre-Settlement Funding?

Before we dive into the specifics of what happens if you lose your lawsuit after receiving funding, let's take a moment to review what pre-settlement funding is. Pre-settlement funding is a type of funding that is provided to plaintiffs in a lawsuit. It is designed to help cover the plaintiff's living expenses and legal fees while they await a settlement or judgment. Unlike traditional loans, pre-settlement funding does not require repayment until the case is resolved. If the plaintiff wins the case, the funding is repaid from the settlement amount.

What Happens If You Lose Your Lawsuit After Receiving Funding?

If you lose your lawsuit after receiving pre-settlement funding, you are not responsible for repaying the funding if you obtained a non-recourse loan. It is important to make sure that the loan you are taking out is non-recourse before taking out the loan. A non-recourse loan means that the funding company assumes the risk of losing the money they invested in your case. This means that if you receive a cash advance of $10,000 and lose your lawsuit, you will not owe the funding company anything. You don't need to worry about not being able to pay back your loan because at Flash Legal Funding all of our loans are non-recourse.

Final Thoughts

Losing a lawsuit after receiving pre-settlement funding can be a challenging experience. However, if you obtained a non-recourse loan, you will not be responsible for repaying the funding if you lose your case. This can provide you with peace of mind during the legal process and allow you to focus on your case without the added stress of repayment. If you have any questions about pre-settlement funding, it’s essential to work with experienced professionals to ensure that you understand all of your options.