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LEGAL TERMS - Pre-Settlement Lawsuit Financing

Legal Terms - Pre-Settlement Lawsuit Financing

Pre-Settlement Lawsuit Financing Information:  Pre-Settlement Lawsuit Financing occurs when someone purchases from the claimant a portion of a future recovery or settlement.  The portion is generally a defined amount, usually to cover living expenses pending settlement, rather than a percentage of the future settlement.  In some pre-settlement lawsuit financing arrangements no payback of the pre-settlement money is required unless money is ultimately received in settlement of the case.  The attorney involved should be mindful of ethical rules impacted by pre-settlement lawsuit financing issues.

  



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