Last Updated on May 18, 2025 by Amrita Das
If you’re in the middle of a lawsuit and struggling to manage day-to-day expenses, pre-settlement loans might be your answer. But here’s a common question many plaintiffs ask: How many pre-settlement loans can you get?
The short answer is that there’s no legal limit to how many pre-settlement loans you can receive, but the exact number largely depends on factors such as the value of your case and how much you’ve already borrowed.
This guide will explain everything you need to know about securing multiple pre-settlement loans, the process involved, and how to manage loans effectively if you decide to take more than one.
What Is a Pre-Settlement Loan?
Before we get into the specifics, let’s clarify what a pre-settlement loan is.
Pre-settlement loans, also known as lawsuit cash advances or legal funding, provide plaintiffs with financial assistance while they wait for their lawsuits to be resolved. Unlike traditional loans, pre-settlement advances are non-recourse, meaning you only repay them if you win or settle your case.
These loans can be used to cover essential expenses such as:
- Rent or mortgage payments
- Medical bills
- Groceries
- Utility bills
- Transportation costs
Because legal cases, particularly personal injury lawsuits, can take months or even years to resolve, many plaintiffs rely on pre-settlement funding to alleviate financial pressures.
Read More: Is OppLoans Legit? A Comprehensive Review
Can You Get Multiple Pre-Settlement Loans?
Yes, you can get more than one pre-settlement loan, but each additional loan depends on the specific circumstances of your case. Here’s how it works:
- Case Value Assessment: Each time you apply for a new loan, the funding company evaluates the remaining value of your expected settlement. If your case still holds enough value, you’re more likely to qualify for another advance.
- Attorney Approval Required: Your attorney must approve each funding request. Lawyers play a key role in confirming case updates and ensuring funding doesn’t negatively impact your recovery.
- Updated Case Information: The funding company will reassess your case based on the latest details, such as additional damages, medical expenses, or changes in settlement negotiations.
- Limits on Funding: Typically, funding companies cap loans at around 10-20% of the anticipated settlement value to avoid overfunding. This ensures there’s enough left to cover attorney fees, medical liens, and your own payout.
Why You Might Need More Lawsuit Funding?
There are several common scenarios where plaintiffs find themselves needing another round of pre-settlement funding. Here are the most prevalent ones.
Higher Than Expected Expenses
At the time of your first funding request, it was likely difficult to estimate your total expenses. Unexpected circumstances can often inflate those original estimates, leaving you financially strapped.
- Medical Costs: Ongoing treatments or new therapies can add to your total healthcare expenses. Even switching to a health plan with a higher deductible could strain your budget.
- Everyday Living Costs: Rent, utilities, groceries, and other essential expenses often go up, particularly if your case drags on for months.
Loss of Income
Many plaintiffs anticipate returning to work during their case. Yet, injuries or disabilities caused by the incident can make that impossible. Without the anticipated income to rely on, financial stress can increase exponentially.
Delays in Settlement
Lawsuits can be unpredictable, and defense attorneys are known to employ stalling tactics to force plaintiffs into accepting lower settlements. These delays can stretch your litigation timeline significantly, leaving you waiting months (or even years) for the compensation you rightfully deserve.
High Interest Rates on Existing Loans
If you previously secured a lawsuit loan with another company that charges exorbitant fees, you might now be looking to refinance or buy out the contract. By seeking additional funding with better terms, such as lower rates, you can reduce financial pressure while your case is ongoing.
What Are the Criteria for Lawsuit Loan Applications?
Before approving your application, lawsuit loan companies assess the following factors:
Legal Representation Is Required
Having legal representation is a non-negotiable criterion. A lawyer’s involvement signals that your case has merit since reputable attorneys typically don’t take on weak cases. Legal representation protects both you and the funding company, ensuring your claim is well-documented and has a higher likelihood of success.
Your lawyer will also be responsible for providing key case details to the funding company and ensuring repayment from your eventual settlement if your case is successful.
Type of Legal Case
Lawsuit loans are typically offered for specific types of legal cases. These include, but are not limited to:
- Personal injury cases, like car accidents or similar
- Medical malpractice claims
- Product liability cases
- Employment disputes or wrongful termination lawsuits
- Workers’ compensation claims
If your case falls under one of these categories, you’re likely eligible for funding.
Strength of Your Case
The strength of your case is paramount to gaining approval. Lenders thoroughly review case details, such as:
- Evidence supporting your claim
- The severity of your injuries
- Documented losses, such as medical expenses and lost wages
- Potential liability of the opposing party
A stronger case with clear evidence increases the likelihood of approval and may even result in a larger advance.
Estimated Settlement Value
Lenders will evaluate the estimated value of your settlement. Typically, lawsuit loans are capped at 10% to 20% of your anticipated settlement to ensure you won’t owe more than you receive after legal fees and medical bills are deducted.
For example, if your case is estimated to settle for $100,000, you may be eligible for a loan of up to $20,000.
Proximity to Settlement
The closer your case is to a settlement, the less risk exists for the lender. If your case is nearing resolution or has already settled but you’re awaiting a payout, lenders may approve higher amounts or offer competitive interest rates.
Conversely, cases in the early litigation stage may face slightly stricter evaluations due to the uncertainty around outcomes.
Repayment Viability
Lenders carefully assess how much you’ve already borrowed (if applicable) versus how much you’re likely to net from your settlement. If you’ve already taken out a large portion of anticipated funds, the lender may be more cautious when approving additional financing.
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How to Get a Second Pre-Settlement Loan?
If you’ve already received funding and want another advance, here’s the process:
Step 1: Contact Your Legal Funding Provider
Reach out to your current funding company to discuss your request. If your original funder cannot provide additional funding, you can approach a different legal funding company.
Step 2: Attorney Collaboration
Your attorney will provide updated case details to the funding company. This may include new medical records, depositions, or developments in settlement negotiations.
Step 3: Case Evaluation
The funding company analyzes the remaining value of your case, factoring in damages, attorney fees, and liens from previous loans.
Step 4: Loan Approval
If your case qualifies, the funding company offers a second advance, typically within 24-48 hours.
Step 5: Contract Signing
Both you and your attorney must review and sign a new or amended funding contract.
Key Benefits of Seeking Additional Lawsuit Funding
Opting for further legal funding isn’t just about survival; it’s about maintaining a strong position in your case. Here’s why additional funding can be beneficial.
- Relieve Financial Stress: Focus on healing and fighting for a fair settlement instead of worrying about bills.
- Avoid Undervaluing Your Case: With financial stability, you’ll resist the urge to accept a lowball offer from the defense.
- Flexible Usage: Funds can be used for rent, groceries, medical bills, or any other living expenses without restrictions.
Read More Guide: How Many Avant Loans Can You Have?
How Many Pre-Settlement Loans Can You Get? Conclusion
Getting multiple pre-settlement loans is possible and, for many plaintiffs, a financial lifeline during lengthy litigation. However, it’s crucial to approach additional funding strategically:
- Assess your financial needs carefully.
- Work closely with your attorney to ensure transparency.
- Understand the risks and costs associated with multiple loans.
- Borrow only what you need to avoid reducing your final payout.
If you’re considering another pre-settlement loan, make sure to choose a trustworthy provider with transparent terms and competitive rates.
