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Litigation funding companies may offer you money now in exchange for repayment from the proceeds of your personal injury case. These arrangements are sometimes called lawsuit loans, settlement advances, or pre-settlement funding.

Our firm generally discourages clients from obtaining litigation funding because it can be extremely expensive and may substantially reduce the amount you ultimately receive.

Funding agreements often include high interest rates, financing charges, processing fees, and other costs. Because personal injury cases may take months or years to resolve, the repayment amount can increase significantly over time and may become several times greater than the amount originally advanced.

Litigation funding may also affect your settlement decisions. After attorneys’ fees, case expenses, medical liens, reimbursement claims, and repayment of the funding company, your net recovery may be much lower than expected.

Before signing any agreement, you should carefully review:

• The amount you will actually receive;
• The interest rate and all fees;
• Whether charges are compounded;
• The amount you may owe after one, two, or three years;
• Whether the company will receive a lien or assignment against your recovery; and
• Whether the agreement gives the company any role in settlement discussions.

Our firm does not guarantee the outcome, value, or duration of your case. We do not recommend any particular funding company and do not receive referral fees or commissions from funding companies.

The decision to obtain litigation funding is yours. You are strongly encouraged to consult an independent financial adviser or attorney before signing any agreement and to consider less expensive alternatives.

If you decide to obtain litigation funding, you must provide our firm with a complete copy of the agreement. Any review by our firm does not constitute approval or a recommendation that you enter into the transaction.