Yes, your lawyer can deny or decline to cooperate with your attempt to obtain a pre-settlement loan, particularly if they believe it could negatively affect your case or financial outcome. Attorney participation is usually required for this type of funding, and they may refuse to provide case information or sign necessary documents if they have concerns about the funding terms.
While commonly referred to as a “pre-settlement loan,” it’s important to understand that this type of financial support is not actually a loan in the traditional sense. How legal funding works is that it is a non-recourse cash advance, which means repayment is only required if the case is successful and results in compensation. If the case is lost, there is no obligation to repay the funding.
Because of this structure, legal funding is considered an alternative to taking out a loan. It is often used by plaintiffs who need financial support during ongoing litigation but want to avoid incurring personal debt or monthly repayment obligations.
Why Attorney Cooperation Matters
Pre-settlement funding involves evaluating the strength and value of your legal claim. Because your attorney is handling your case, their involvement is necessary to provide key case details and to confirm that a repayment can be made from any future settlement or award.
If your lawyer refuses to participate, most funding companies will not proceed. In some situations, attorneys may decline to cooperate because:
- They are concerned the funding terms are unfair or predatory
- They believe accepting money now could pressure you into settling too early
- They are unfamiliar with or cautious about working with third-party funding providers
- They are ethically obligated to act in your best financial interest, which may include avoiding high-cost funding agreements
That said, there are funding companies that work in alignment with attorneys and provide transparent, fair options to support plaintiffs responsibly.
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Legal Funding Is Not a Loan
Although people often refer to it as a “pre-settlement loan,” what we offer at Pegasus Legal Capital is not a loan at all. We provide non-recourse legal funding, which means you only repay the money if your case is successful and you receive compensation.
This structure is significantly different from a traditional loan in several key ways:
- No monthly payments: You don’t owe anything until your case resolves.
- No personal liability: If your case is unsuccessful, you owe nothing—there’s no debt to collect.
- No credit check or income requirement: Approval is based on the strength of your legal case, not your financial background.
Unlike traditional bank loans, legal funding is not regulated by banking laws. Instead, your legal claim itself serves as the collateral, and repayment comes only if the case results in a settlement or award. If it doesn’t, you keep the funding with no obligation to repay.
Why Some People Consider Pre-Settlement Funding
Lawsuits—especially personal injury cases—can take months or years to resolve. In the meantime, plaintiffs often face mounting bills, delayed medical treatment, or loss of income due to their injuries. Even if you’re working with a contingency-fee attorney, you may still struggle to cover daily expenses.
Pre-settlement funding offers an alternative to taking on high-interest debt or borrowing from friends and family. It allows you to access a portion of your future settlement early, giving you the financial stability to focus on recovery and legal proceedings without pressure to settle early for less than you deserve.
At Pegasus Legal Capital, we work closely with personal injury attorneys and their clients to ensure the funding process is straightforward, fair, and fast.
Our team uses advanced underwriting technology to tailor each funding decision to the specifics of the case, and we’re committed to clear communication with both you and your lawyer.
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What to Do If Your Lawyer Says No
If your attorney is hesitant or declines to participate in pre-settlement funding, the first step is to have an open conversation. Ask them:
- What are your concerns about the funding?
- Are the terms from this provider risky or unfavorable?
- Is there an alternative you’d recommend to manage my financial stress?
In some cases, attorneys are more willing to work with trusted funding companies that use transparent terms and client-friendly practices. If they’ve had bad experiences with certain providers in the past, that doesn’t mean all legal funding options are off the table.
We encourage you to let your attorney know that Pegasus Legal Capital offers non-recourse cash advances with no credit checks, no monthly payments, and no repayment if the case isn’t successful.
We’ve been supporting clients and attorneys since 2007, and we’re proud to be your trusted legal funding partner.
Your pre-settlement funding consultation is free - contact us today!
The Bottom Line
Your lawyer can choose not to support a pre-settlement loan application, especially if they believe it may harm your financial outcome or the integrity of your case. However, legal funding is not a loan—it’s a risk-free alternative designed specifically for plaintiffs awaiting fair compensation.
If you’re struggling financially while your lawsuit moves forward, non-recourse funding from Pegasus Legal Capital can offer the breathing room you need.
We work in partnership with attorneys to make the process smooth, ethical, and supportive—so you can stay focused on your case, not your next bill.
Your pre-settlement funding consultation is free - contact us today!
