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Lawsuit settlement funding is when a company gives you money right away in exchange for the right to receive a portion of your financial settlement in the future. Money immediately sent to you to pay bills and pay nothing back until you get money from the settlement of your claims.
If you don't receive settlement money or verdict from your claims, you don't pay anything back to the legal funding company. This is commonly called "non-recourse."
Pre-settlement funding is sometimes called consumer legal funding, This type of legal funding is not a loan; there is no debt, no monthly payments, and no risk of collections calls or wage garnishments. Any money paid to the legal funding company comes only out of the proceeds of the settlement and verdict, never out of your pocket.