Pre-Settlement Funding Buyout | Refinance Your Lawsuit Loan

Already have lawsuit funding with another company?

Baker Street Funding may be able to buy out your current agreement, pay off the existing balance, get you more cash, and give you a better rate. Our non-recourse pre-settlement funding with capped, non-compounding (simple) interest rates can save you money on your settlement.

No Upfront Fees | Risk-Free | Quick Funding

Already a Baker Street client and just need a supplemental advance? Visit our Additional Funding page.

How do a pre-settlement funding buyouts and consolidation work?

A pre-settlement funding buyout allows a new funding company to consolidate your existing legal funding debt into a single, transparent agreement. This process—often called “refinancing”—replaces your current high-interest lien with a new one that offers better terms and additional capital.

In simple words, it works like this:

you already have lawsuit funding
a new company reviews your case and existing payoff
if your case qualifies, the new funder pays off your original lender in full, satisfying your old debt
your old agreement is closed, your new funder establishes a single new lien on the case, and you sign one new non-recourse funding contract going forward.

This “replaces and consolidates” your previous non-recourse obligations into one balance.

Can you get extra cash with a buyout?

Yes. If your case qualifies, a pre-settlement funding buyout does two things at once:

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

The amount you get approved for 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.

You can use the extra cash to cover essential expenses like medical bills, rent/mortgage, groceries, or other financial needs while your case is still pending.

Why consolidate your lawsuit loans?

Most people searching for a pre-settlement funding buyout or lawsuit loan refinance are looking to simplify their financial situation. By consolidating, you can often lock in a lower interest rate, secure a contractual payoff cap, move from a compounding interest model to a simple interest structure, and obtain extra caash at the same time.

Here is how much you can save with a buyout.

Most people searching for a pre-settlement funding buyout or lawsuit loan refinance are looking to simplify their financial situation. By consolidating, you can often lock in a lower interest rate, secure a contractual payoff cap, and move from a compounding interest model to a simple interest structure.

Feature	Typical Compounding Loan	Baker Street Consolidated
Interest Type	Monthly Compounding (Interest on interest)	Simple Interest (Fixed monthly rate)
Monthly Rate	Often 4.9% or higher	2.95%
1-Year Payoff	~$17,750	$13,540
2-Year Payoff	~$31,500	$17,080
Payoff Cap	Often None (Grows indefinitely)	3-Year Cap (Stops at 100% of principal)
Total Savings	$0	Thousands of dollars saved

In a compounding agreement, your debt grows exponentially every month. By consolidating with Baker Street Funding, your payoff is calculated only on the original amount you borrowed. This ensures that more of your settlement money stays in your pocket—not the lender’s.

If your payoff keeps rising, cool it down.

A buyout may move you into clearer terms—like simple vs. compounding pricing and whether there’s a cap.

How a Baker Street Funding buyout works.

A buyout occurs when a new funding company pays off your existing balance with your first lender and provides you with additional cash on top of that amount. Here is how it works with Baker Street Funding:

You apply for funds

Send us the basic details about your case, your attorney, and current funding. No credit checks.

We request a payoff letter

It shows exactly what you owe on the current agreement right now, and if there is remaining “equity” to cover both the old debt and the new advance.

We review your case with your lawyer

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

Legal funding decision

If the numbers make sense, you and your aåttorney receive a new Baker Street Funding agreement.

Review and sign the agreement

You and your attorney review and sign the paperwork before funds are disbursed.

Pay off and new funding

Upon contract execution, we pay your original pre-settlement loan in full. You receive the remaining balance of the new, larger advance.

Your contract will include the payoff to the first company as well as the new funding you are set to receive. This total amount will now be consolidated at the new lower rate.

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, and no credit checks.

What your attorney needs to provide.

Your attorney is a key part of this process.

In all buyout reviews, Baker Street Funding will need:

a case update from your attorney
confirmation about the status and value of the claim
confirmation of the payoff
review of the new agreement
signed acknowledgment or an LOP (letter of protection) before funds are disbursed.

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?

When switching companies may make sense

Questions to ask before you agree to a buyout

Refinance your lawsuit loan with a Baker Street Funding lower-rate buyout.

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

Rates as low as 2.95% monthly simple interest
3-year cap for predictable payoff growth
No hidden fees or out-of-pocket costs
Dedicated support through the buyout process
Additional cash available if your case qualifies

If your current agreement feels too expensive, too confusing, or too limiting, a legal funding buyout with Baker Street Funding may put you in a better position while your case continues.

FAQ.

What is a payoff letter in a lawsuit funding buyout?

A payoff letter shows the amount currently owed to your existing legal funding company. We use that information, along with your attorney’s case update, to see whether a buyout is possible and whether your case still supports new funding.

Can I still qualify if I already have a lawsuit loan with another company?

Yes. If your case qualifies, Baker Street Funding may be able to review the existing balance, assess the case with your attorney, determine whether additional funding is available, and upon approval, pay off the prior funding through a buyout.

Can I get extra cash during a buyout?

Absolutely. If your case qualifies, a buyout will both pay off your current funding company and provide additional cash under the new agreement. The amount you can receive will depend on how much value is still left in the case after fees, liens, costs, and prior funding.

What is my current company won't provide a payoff?

You are not powerless if your current funding company won’t send your new funder choice a payoff letter. Start with a written request, CC your attorney, ask for an itemized payoff good through a specific date, and document every delay. If the company is an ALFA member, ALFA’s published standard is a written payoff response within one business day to another member’s written request.

If the company continues to refuse, your attorney can advise you on the next steps, which may include reporting the company to the appropriate government authorities.

What factors do you consider when reviewing a buyout?

When reviewing buyouts, we consider factors such as the value of your case, the amount already owed on prior lawsuit loans, whether ongoing medical treatment has strengthened the claim, and your immediate financial needs. Those details help determine both the amount of added funding that may be available and the rate that may apply.

Baker Street Funding works closely with your attorney to assess case merits and determine whether additional funding through a pre-settlement loan buyout can be provided.