How much can I get, what does it cost, how does the math actually work
How much can I get from a pre-settlement funding company?
You can typically get up to 10% of the estimated value of your pending case, with funding amounts ranging from $1,500 to $2,500,000 at Baker Street Funding. The exact amount is set by underwriting and depends on your case strength, expected timeline, the insurance available to the defendant, and any prior advances on the same case.
A simple way to estimate: if your attorney values your case at $500,000, a typical first advance would be up to $50,000. If your case is settled and just waiting on the payout, you may qualify for up to 20% → /post-settlement-funding/] under our post-settlement product.
How are pre-settlement funding rates calculated?
Rates are calculated as a flat monthly percentage of the principal advanced — non-compounding in most Baker Street Funding contracts. Starting rates are 2.95% per month, meaning a $10,000 advance accrues approximately $295 in fees each month, never compounding on top of itself.
This is important because some companies charge compounding monthly rates, where month two’s fee is calculated on month one’s balance-plus-fees. Over a 2-year case, the difference between a non-compounding 2.95% and a compounding 3% can be tens of thousands of dollars in repayment.
Always ask for the type of interest in writing, not just the percentage. See our full breakdown of interest rate types →
Is there a cap on how much I'll owe?
Yes. Baker Street Funding caps the accrued fees at either 2 or 3 years, or at 100% of the funded amount — whichever comes first. After that point, fees stop accruing entirely, even if your case takes longer.
This cap is unusual. Many lawsuit funding companies have no cap at all, meaning fees keep accruing for the entire life of the case. On a 5-year case, that difference can erase your settlement. Always ask: “Is there a cap on what I’ll owe, and what triggers it?” If the answer is “no” or “it depends,” consider that a red flag.
What does pre-settlement funding actually cost over time?
What does pre-settlement funding actually cost over time?
The cost depends on your rate, your principal, and how long your case takes. A worked example with our 2.95% non-compounding rate:
Time to settlement | Owed on $10,000 advance |
6 months | ~$11,770 |
12 months | ~$13,540 |
24 months | ~$17,080 |
36 months (cap hit) | ~$20,620 |
48 months (cap stops) | ~$20,620 |
These are illustrative — your actual contract will show exact payoff figures at multiple time horizons before you sign. For a personalized estimate, use our lawsuit loan calculator →
Can I get pre-settlement funding more than once on the same case?
You can apply for additional advances on the same case if your needs grow and there’s still room within your case value. We typically wait at least 90 days between advances, look at how your case has progressed in that time (new medical records, depositions, settlement offers, etc.), and confirm the combined balance still leaves enough net recovery to make sense.
See our full guide to supplemental pre-settlement funding →
Can I get monthly payments instead of one lump sum?
For larger cases — typically estimated at $500,000 or more — yes. Baker Street can structure your advance as scheduled monthly disbursements (for example, $3,000/month for 6 months) instead of a single lump sum. Interest only accrues on funds already disbursed, not on the undisbursed schedule. This is common for wrongful imprisonment exonerees and catastrophic-injury plaintiffs.
See monthly pre-settlement funding → for the full breakdown.
Are there any upfront fees or out-of-pocket costs?
No. No application fees, no underwriting fees, no monthly payments, no anything-out-of-pocket. If a funding company asks you for money before sending you funds, walk away and report it. Legitimate pre-settlement funding is always paid from the settlement at the end — never from you in advance.
What’s required, what happens if I’m denied, what slows things down
How long does pre-settlement funding take from application to deposit?
Usually 24 to 48 hours from the moment your attorney sends us your case file. Application itself takes about 5–10 minutes. Underwriting decisions are typically same-day. Once you and your attorney sign the contract, funds are wired (or a check is overnighted) within hours.
The single biggest variable is how quickly your attorney’s office sends the file. For the complete timeline including what can slow things down, see when do I start collecting pre-settlement funding →
What documents will my attorney need to provide?
Standard documentation includes: the complaint or demand letter, the police or incident report (if applicable), available medical records, insurance information for all defendants, and any settlement correspondence. For specific case types we may also ask for expert reports or deposition transcripts.
Your attorney already has most of this in their file. You don’t need to gather anything yourself — once you sign the consent form, we coordinate directly with their office.
What if my attorney is slow to respond?
This is the most common cause of funding delays. If your attorney’s office hasn’t responded within 48 hours, the most effective step is calling them directly and asking that the case file be sent to Baker Street Funding. A quick text or email from you usually moves things along faster than any reminder we can send. We never bypass your attorney — but we’ll keep coordinating until the file arrives.
Learn more about attorney’s consent for pre-settlement funding here→
What are the most common reasons applications get denied?
Five reasons cause about 90% of denials we see:
Liability isn’t clearly established — fault is disputed or shared in a way that complicates recovery
Defendant has no collectible insurance or assets — even a winning verdict won’t actually pay
Case value is too small — usually under our $50,000 estimated-value minimum
No retained attorney, or the attorney won’t participate in the funding process
Statute of limitations has expired or is about to expire, killing the case’s value
For the deeper breakdown — including what you can do to improve your chances after a denial — see top reasons plaintiffs get denied →
Can I apply if my case hasn't been filed in court yet?
Sometimes, yes. The strict requirement is that you’re represented by an attorney on contingency. A formally filed lawsuit makes underwriting easier and usually unlocks higher advance amounts, but pre-filing cases with strong documentation (police report, medical records, clear liability) can often qualify too. The earliest stage we typically fund is once an attorney has formally accepted representation and gathered initial evidence.
Does Baker Street Funding check my credit?
No. We don’t run credit checks, pull credit reports, or verify your income or employment. Approval is based entirely on your case. Your credit score will not be affected by applying — there is no inquiry of any kind on your report.
What if I'm denied — can I apply somewhere else?
Yes. A denial from one company isn’t a denial from all of them. Different funders have different underwriting standards, state restrictions, and case-type preferences. That said, multiple companies pulling your attorney’s time can frustrate your attorney’s office, so it’s smart to ask the company that denied you why before applying elsewhere. Sometimes a small fix (waiting for a key medical record, filing the complaint, getting an offer in writing) unlocks approval.
What’s actually in the agreement, what I’m signing away
What's actually in a pre-settlement funding contract?
A standard pre-settlement funding contract spells out, at minimum: the principal amount being advanced, the rate (and whether it’s compounding or non-compounding), the fee cap (if any), the repayment terms (paid by your attorney from settlement proceeds), the non-recourse clause (no repayment if you lose), and a right to rescind within a state-mandated window (often 5 to 10 business days in regulated states). It also includes the lien language your attorney signs.
Read the section labeled “Total Payoff Amount” or “Schedule of Charges” carefully — that’s where the real cost lives. If a contract doesn’t show projected payoff amounts at 6, 12, 18, 24, 30, and 36 months, ask for that schedule in writing before signing.
Will I have a right to cancel after I sign?
In most cases, yes — and even in states without statutory rescission rights, Baker Street Funding offers a 5-business-day rescission window. If you cancel within that window and return the funds, you owe nothing. After the rescission period, the contract is binding, but you can still pay off the balance at any time without penalty.
Does my attorney have to sign anything?
Yes. Your attorney signs an acknowledgment of the lien on your case proceeds. This is the document that gives the funding company a legal interest in the settlement and obligates your attorney to disburse repayment from the settlement before paying you. Your attorney does not become a borrower or co-obligor — they’re just confirming the lien.
This is also the reason you can’t get pre-settlement funding without an attorney: there’s no one to acknowledge the lien or handle disbursement.
Does the funding company control my case or settlement decisions?
No. Baker Street Funding has no authority to direct your case strategy, settle on your behalf, force you to accept or reject an offer, fire your attorney, or get involved in any litigation decision. Those decisions stay 100% between you and your attorney. The lien on your settlement is a payment mechanism, not control.
This is true under ALFA standards and most state funding regulations. If any company suggests they can influence your case, that’s both unethical and likely illegal in most states.
Is my information confidential?
Yes. Baker Street Funding limits access to your information to what’s needed for underwriting and coordination with your attorney’s office. Your case details are not sold, shared with third parties for marketing, or disclosed publicly. Communications with your attorney remain attorney-client privileged — funding company contact with your lawyer happens through standard channels, not under the privilege.
What does "non-recourse" actually mean in practice?
Non-recourse means we can only collect from the settlement — never from you personally. If your case loses, is dismissed, or recovers less than what’s owed, the loss is ours, not yours. We cannot:
- Sue you personally for the balance
- Garnish your wages
- Place a lien on your home or bank account
- Report the unpaid balance to credit bureaus
- Pursue your family members or estate
- This is the legal foundation of the entire pre-settlement funding industry. It’s what distinguishes funding from a traditional loan.
Medicaid, bankruptcy, taxes, divorce, child support, dropped attorneys
Will pre-settlement funding affect my Medicaid or SSI eligibility?
Usually no, but the answer depends on your state. Because pre-settlement funding is structured as an advance against a future settlement (not income, not a loan to you personally), most states do not count it as income for Medicaid or SSI purposes at the time of disbursement. However, the funds in your account once received may count toward asset limits in some states, and the eventual settlement itself almost always counts.
This is the single most important question for plaintiffs on public benefits, and the answer needs to come from a benefits-planning attorney in your state — not from us. If you’re on SSI, Medicaid, SSDI, or any means-tested benefit, ask your attorney to coordinate with a special-needs-trust or Medicaid-planning attorney before you accept funding. The settlement structure (lump sum, structured settlement, or special needs trust) matters more than the advance itself.
What happens to my pre-settlement funding if I file for bankruptcy?
A pending lawsuit is generally an asset of the bankruptcy estate, and a pre-settlement funding advance is generally treated as an unsecured debt against the future settlement. If you’re considering bankruptcy, disclose any existing pre-settlement funding to your bankruptcy attorney before you file — failing to disclose can have serious consequences. The interaction between the funding contract, the lawsuit, and the bankruptcy is complex and depends on the chapter (7 vs. 13), the timing, and the trustee’s position.
We don’t represent you in either matter. Always coordinate with both your personal injury attorney and a bankruptcy attorney before making decisions.
See does filing bankruptcy affect qualifying for pre-settlement funding? →
Is pre-settlement funding taxable?
Probably not, but consult a tax professional. The IRS generally treats pre-settlement funding the same way it treats the underlying settlement. Physical injury settlements are typically excludable from income under IRC § 26 U.S.C. § 104(a)(2) →, meaning neither the settlement nor an advance against it is generally taxable. Punitive damages, lost wages, and emotional-distress-only settlements have different rules.
This is general information, not tax advice. Always confirm with a CPA or tax attorney before assuming any particular treatment applies to your case.
Will pre-settlement funding affect a divorce or child support order?
It can. Settlement proceeds and pre-settlement advances can be considered marital assets, divisible income for support calculations, or both, depending on your state. If you’re divorced, in divorce proceedings, or paying child support, tell your funding specialist during the application and tell your family-law attorney as well. Some states require disclosure of incoming settlement money in active family support cases.
What happens if my attorney quits or I switch attorneys mid-case?
The funding contract follows the case, not the attorney. If you fire your lawyer, hire a new one, or your lawyer withdraws, the lien on your settlement remains in place — the new attorney acknowledges the same lien before continuing the case. Contact your funding specialist as soon as a representation change happens so we can update the file and send the lien acknowledgment to your new attorney.
What if my case is settled but the check is being delayed?
This is more common than people realize. Insurance companies and defendants regularly delay disbursement 30–90 days after settlement signing — for lien negotiations, court approval, structured settlement setup, or just paperwork drag. If you’ve signed a settlement and the money hasn’t arrived, you may qualify for post-settlement funding → at significantly lower rates than pre-settlement, because the risk is much lower.
Call us at (888) 711-3599 — we’ll structure something based on the signed agreement.
Case dismissals, attorney changes, second funding, payoff letters
What if my case is dismissed?
A dismissal is treated the same as a loss for purposes of the funding contract — you owe nothing. Whether the case is dismissed voluntarily, dismissed by the court, settled for $0, or simply abandoned, the non-recourse clause applies. The funding company absorbs the loss. (Practically, this is the risk we underwrite for; it’s built into our rate structure.)
What if I settle for less than expected?
You repay the agreed amount from whatever you receive. If the settlement isn’t large enough to cover the funding payoff plus your attorney fees plus liens plus you receiving anything, most reputable funders (including Baker Street) will negotiate a reduced payoff to make sure you walk away with something. This is an ALFA-aligned practice. Always ask any funder up front: “Do you negotiate reductions on disappointing settlements?” If they say no, that’s a red flag.
Can I pay off pre-settlement funding early without penalty?
Yes. There are no prepayment penalties at Baker Street Funding. If your case settles faster than expected, or if your financial situation changes and you can pay off the advance, you simply pay the current balance (principal plus accrued non-compounding fees through the payoff date). Some companies charge prepayment penalties — always confirm this in writing before you sign.
How do I get a payoff letter and how fast does it arrive?
You or your attorney can request a payoff letter at any time. We issue them in writing, typically within 1 business day. The letter shows the current balance, the per-day accrual until a stated date, and our wire instructions for the payoff.
If you’re hearing reports of a funding company that won’t issue a payoff letter, that’s a serious warning sign — see what to do when a funding company won’t send a payoff letter →
Can I have multiple pre-settlement loans from different companies on the same case?
Technically, sometimes. Practically, it’s almost never a good idea. Multiple liens compete for the same settlement proceeds, attorneys often refuse to take on additional liens once one is in place, and the total accrued fees can quickly eat your settlement. The smarter move is a buyout — a single new funder pays off the existing balance and consolidates everything under one (ideally lower) rate.
What if I just want a small advance, like $1,500?
That’s our minimum, and it’s fine. Small advances make sense for narrowly defined needs (one month’s rent, a single medical bill, an overdue utility shutoff). The application and underwriting process is identical, and the cost stays small because the principal is small. There’s no pressure to take more than you actually need — and at the lower end, the total cost is usually a few hundred dollars even on cases that take 12–18 months to resolve.
What if the company I'm considering won't give me a written quote before I sign?
Walk away. A reputable funder will give you a written quote showing the principal, the rate, the type of interest (compounding or non-compounding), the cap (if any), and projected payoffs at 6, 12, 18, 24, 30 and 36 months — before you sign anything.
If a company is dodging that, the contract terms are almost always worse than what they verbally describe. TheALFA Code of Conduct → requires written disclosure of these terms.