Funding
Post-settlement funding
Post-settlement funding is a cash advance taken after a case has settled but before the settlement money has actually been disbursed.
The wait between agreeing to a settlement and receiving the check routinely runs weeks or months while liens are negotiated and the funds clear the attorney's trust account.
It costs less than pre-settlement funding because the recovery is no longer uncertain. Get Lit Money charges 15% per six-month period rather than 25%, and half of these advances are repaid within 66 days.
Related terms
- Pre-settlement funding — Pre-settlement funding is a non-recourse cash advance against a pending legal claim, repaid from the settlement if the case recovers and canceled entirely if it does not.
- Trust account — A trust account, sometimes called an IOLTA account, is a separate bank account in which an attorney is required to hold client settlement funds until they are properly disbursed.
- Disbursement — Disbursement is the payment of settlement funds out of an attorney's trust account, following the order of attorney fees and costs, then liens, then the claimant's remaining share.
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