What Happens if I Lose My Case? Do I Really Owe Nothing?
3 min read read
Published Apr 2, 2025
The Ultimate Safety Net
This is the single most important question we get asked, and the answer is the main reason why pre-settlement funding is safer than a bank loan.
If you lose your case, you owe us absolutely nothing. You do not have to pay back the principal. You do not have to pay back the interest. You keep the money we sent you, and we close your file. We take the loss, not you.
How Is This Possible?
It comes down to the legal structure of the transaction. As we mentioned in previous articles, this is not a loan; it is a "non-recourse purchase agreement."
We are buying a small piece of your future settlement. If that future settlement never happens (because the case is lost or dismissed), the asset we bought is worth zero. Since we share the risk with you, we share the loss with you. We cannot legally come after your house, your car, or your paycheck to recover that money.
No Hidden Loopholes
Clients often ask, "Are there exceptions? What if I just drop the case?"
The only time you would ever be liable is if you committed fraud (e.g., you faked the accident or lied about having an injury). But for any legitimate legal reason—whether the jury rules against you, the judge dismisses the case, or the insurance company refuses to pay—you are completely protected. This protection is written clearly in black and white in every contract we issue.
