Can I receive pre-settlement funding if my case is in arbitration?

Pre-settlement funding, more commonly known as a “lawsuit loan” is a type of financing provided to individuals who are involved in ongoing civil lawsuits. It is a way of bridging the financial gap during litigation, when individuals may not have the financial resources to pay their legal fees or living costs while they wait for their case to be resolved. These short-term funds are provided to a plaintiff on a non-recourse basis, meaning it does not have to be repaid if the case is lost.

The question of whether or not one can receive pre-settlement funding for an arbitration case is complex. There are many factors that these lenders will consider before providing such funding. However, it is important to understand that not all arbitration cases will qualify for pre-settlement funding.

What is Arbitration?

Arbitration is a way to have legal disputes resolved. It is a form of alternative dispute resolution which allows parties to resolve their disputes without going to court. Instead, the dispute is heard before an independent third party called an arbitrator, who is responsible for making a determination and issuing a legal decision.

The process of arbitration is different from a civil lawsuit. Generally, parties involved in an arbitration are required to waive their right to a jury trial. The arbitration process is often less expensive and faster than a trial, but the decision made by the arbitrator is binding and cannot be appealed.

Can I Receive Pre-Settlement Funding if My Case is in Arbitration?

Pre-settlement funding companies only provide funding to qualified cases. Generally, they are looking for cases that have a high likelihood of success and result in high payouts. Due to the nature of arbitration, it is likely that most pre-settlement funding companies will not fund arbitration cases.

However, there are some lenders that may still be willing to consider providing funding for arbitration cases. These companies may consider cases where the underlying dispute has enough merit for the arbitrator to impose a favorable decision and award damages. They may also consider cases in which the parties involved have agreed to a settlement, as this may imply a high likelihood of success. In order to determine whether or not pre-settlement funding is available for an arbitration case, potential borrowers should speak to a loan specialist and discuss their case.

In some cases, individuals may be able to receive pre-settlement funding while they are waiting for the arbitration to be completed. This is typically done through a process known as a “pre-award loan”. A pre-award loan allows a borrower to receive funds during the arbitration process to cover costs such as living expenses, legal fees, and other related costs while they wait for a decision.

Conclusion

Receiving pre-settlement funding for an arbitration case is complex and not all cases will qualify. Pre-settlement funding companies will typically only provide funding for cases that have a high likelihood of success and result in a high payout. However, some lenders may be willing to provide funding for arbitration cases, especially if there is a settlement agreement in place or if the case has enough merit for an arbitrator to impose a favorable decision. Additionally, individuals may be able to receive a pre-award loan to cover costs while they wait for an arbitrator’s ruling.