What is a lawsuit loan buyout?

A buyout is when one funder pays off your existing advance with another company and replaces it with their own on better terms. It is worth doing when your current agreement compounds or has no cap, because the balance on those agreements can grow past the value of your case.

Can I refinance an existing advance?

Yes. Get Lit Money buys out advances from other funders, replacing a compounding or uncapped agreement with a flat 25% per six-month period, no compounding, and a hard 2× cap. Whether it is worth doing depends on your current payoff figure and what is left in your case.

What are the red flags of a predatory funder?

The clearest warning signs are a refusal to put total payoff figures in writing before you sign, a rate that compounds, no cap on total repayment, a fee schedule that is not itemized, pressure to decide immediately, and an offer to fund without your attorney's involvement.

How do I compare lawsuit funding companies?

Ask every funder for the total dollar amount you would repay at six, twelve, eighteen and twenty-four months on the exact amount you need, in writing, with every fee itemized. Comparing those four numbers is the only reliable method, because advertised rates use different periods, different compounding and different fee structures that are not comparable on their face.

Why do funders advertise "starting at" rates?

Because the advertised rate is a floor reserved for the strongest cases, not the rate most applicants receive. A funder advertising "starting at 2.95%" or "as low as" is quoting its best-case pricing, and applicants typically discover the rate they actually qualify for at signing.

Buyouts

Watching your payoff figure grow every month?

If you took an advance that compounds or has no cap, the balance can outrun the case. We buy those out and replace them with a flat rate that steps twice a year and stops at 2×.

Start a buyout Call 813-798-5528

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Ask your current funder for a written payoff figure as of today.

Without that number there is nothing to compare, and we cannot tell you whether a buyout actually helps.

What a buyout is

One funder pays off another, on better terms

A buyout is when a funding company pays off your existing advance with another company and replaces it with its own agreement. The situation it solves is specific: you took an advance a year or more ago, the case is still open, and the payoff figure has grown to something that will consume most of the settlement.

Moving that balance onto a flat, non-compounding, capped agreement stops the growth. What it does not do is erase what has already accrued — the existing payoff is what gets bought out, and it becomes the new advance amount.

Worth doing?

When a buyout helps, and when it doesn’t

It probably helps if

Your agreement compounds — the charge is calculated on a growing balance.
There is no cap on total repayment, or the cap is by elapsed time rather than a multiple.
The rate steps monthly rather than every six months.
Your case still has a year or more to run.

It probably doesn’t if

Your existing terms are already flat, simple and capped.
Your case is close to resolving — a buyout would just add a fee.
The existing payoff already exceeds what the case is realistically worth.

We will tell you if it does not help. Buying out an advance that is about to be repaid anyway is not in your interest.

What you move to

The terms you end up on

No compounding

Every charge is worked out on the amount advanced, never on a balance that has been growing on itself.

Six-month steps

The number moves twice a year, not twelve times.

Hard 2× cap

Repayment on the advance stops at twice the advance. No time limit, no exceptions.

One published rate

25% per six-month period on a case that is still open, for every approved applicant. No case-strength scoring.

Payoff schedule after a buyout
Advance	Fees	By 6 mo	By 12 mo	By 18 mo	24 mo +
$500	$200	$825	$950	$1,075	$1,200
$1,000	$200	$1,450	$1,700	$1,950	$2,200
$2,500	$200	$3,325	$3,950	$4,575	$5,200
$5,000	$200	$6,450	$7,700	$8,950	$10,200
$10,000	$200	$12,700	$15,200	$17,700	$20,200
$25,000	$200	$31,450	$37,700	$43,950	$50,200

Every figure is the total repaid at settlement — the advance, plus 25% of the advance for each six-month period, plus fees. Charges are simple: each period is calculated on the original advance, never on a growing balance. Assumes a first advance ($100 application fee plus $100 processing fee). Fees never grow and are never paid out of pocket. The final column is the 2× cap: at 24 months the amount repaid on the advance stops and never moves again, however long the case runs.

On a buyout the amount advanced is your existing payoff figure, so read the table against that number rather than against what you originally received. Only the $100 processing fee applies if you have funded with us before.

Send us the payoff figure and we'll tell you straight.

Ask your current funder for it in writing, then call 813-798-5528. If a buyout doesn't help you, we'll say so.

Start a buyout Call 813-798-5528

Questions about buyouts and comparing funders

What compounding does over time