If you are involved in a personal injury lawsuit, waiting for a settlement can create serious financial stress. Plaintiff’s Litigation Funding (PLF) provides cash advances to help cover essential expenses while your case moves forward. One of the most common questions clients ask is: What happens if I lose my case?
Understanding Non-Recourse Funding
The advances provided by Plaintiff’s Litigation Funding are non-recourse. This means repayment is only required if your case successfully resolves in your favor. The repayment comes directly from your settlement proceeds. If your case does not result in compensation, you are not personally responsible for paying back the advance.
Why Non-Recourse Matters
This structure is very different from a traditional loan. With a standard loan, you would owe money no matter the outcome of your case. Non-recourse funding is designed to relieve that pressure. It allows injured plaintiffs to focus on recovery and pursuing their legal claim without the added fear of long-term debt tied to the lawsuit.
What Clients Can Use Funding For
Many clients use their cash advance to cover necessities such as:
- Rent or mortgage payments
- Utility bills
- Medical care and prescriptions
- Groceries and transportation
Having these needs met provides peace of mind during an uncertain time.
No Repayment If You Do Not Win
If your case is unsuccessful, you owe nothing back to PLF. The risk is on the funding company, not you. This makes litigation funding a helpful option for plaintiffs who need financial stability while their attorneys work toward a resolution.
Final Thoughts
Lawsuits can take months or even years to settle. Plaintiff’s Litigation Funding offers a way to manage expenses during that time without creating future financial obligations if your case is not successful. For many injured plaintiffs, this option can help reduce stress and provide support when it is needed most.