What is a pre-settlement funding buyout?

A pre-settlement funding buyout is when a new funding company pays off your current agreement and replaces it with a new one.

Many people also call this refinancing a lawsuit loan.

In simple words, it works like this:

you already have lawsuit funding
a new company reviews your case and current payoff
if the case qualifies, the old balance is paid off
you sign one new agreement going forward

Most people searching for pre-settlement funding buyout, lawsuit loan buyout, or refinance pre-settlement funding are looking for the same thing: a way to replace an existing deal with one that may work better for them.

Can you get extra cash with a buyout?

Sometimes, yes.

If your case qualifies, a buyout may do two things at once:

satisfy the balance owed to your current funding company
provide you with additional cash under the new agreement

That depends on the strength and value of your case, how much is already owed, and how much recovery may still be available after attorney fees, liens, and costs.

A buyout is not the same as additional funding.

Additional funding usually means you stay with the same company and ask for more money on the same case.

A buyout usually means a new company steps in, pays off the old agreement, and replaces it with a new one.

That is why this page should stay focused on switching companies, not just getting another advance.

If you already have funding elsewhere, the more realistic path is often buyout and consolidation, not stacking a separate second-position advance behind the first company’s lien.

How a Baker Street Funding buyout works.

1. You apply

Send us the basic details about your case and current funding.

2. The case is reviewed

We look at the case value, current posture, existing payoff, and whether enough room remains in the claim.

3. A payoff letter is requested

This is required. It shows exactly what is owed on the current agreement right now.

4. We decide whether the buyout works

If the numbers make sense, you receive a new offer.

5. Your attorney reviews the agreement

Your attorney reviews and signs the paperwork before funds are disbursed.

6. The old agreement is paid off

If approved, we pay your previous funde, and you obtain a new Baker Street Funding agreement.

What your attorney needs to provide

This is not a regular loan.

People often call it a lawsuit loan, but this is non-recourse legal funding, not a traditional loan. Repayment is tied to your case proceeds, not to monthly debt payments like a bank loan or credit card.

Why the structure of your funding matters.

Not every funding agreement works the same way.

If you are thinking about switching companies, do not look only at the monthly rate. Look at the full structure.

You want to understand:

how much you owe today
how the payoff grows over time
whether the pricing is simple or compounding
whether the agreement has a cap
how much cash you are actually receiving after the old balance is paid off

The right buyout is not just about replacing one company with another. It is about making sure the new agreement actually leaves you in a better position.

Who may qualify for a lawsuit loan buyout?

A buyout may be possible if:

your case still has enough value
your current payoff can be covered
your attorney is willing to cooperate
enough recovery may remain after fees, liens, and prior funding
switching companies still makes financial sense for the case

Not every case qualifies. But if your current funding feels too expensive or too restrictive, it is worth getting a second look.

When switching companies may make sense

Questions to ask before you agree to a buyout

Refinance your lawsuit loan with a Baker Street Funding buyout.

Already have lawsuit funding with another company? Baker Street Funding may be able to review your current payoff, buy out the existing balance, and replace it with a clearer non-recourse agreement.