Common & Rare FAQs About Litigation Funding, Leverage & PI Cases

The personal injury world is full of moving parts: lawyers fight for justice, medical providers deliver care up front, insurers often delay, and plaintiffs just want to heal without losing everything in the process.

In recent years, litigation funding has become a crucial tool in this ecosystem. But with new tools come new questions — from the basic (“What is litigation funding?”) to the rare and nuanced (“Will I have to disclose my funding agreement in court?”).

Here’s a guide that answers both the common and the less-frequent but important questions that law firms, paralegals, medical providers, and plaintiffs ask about litigation funding and PI cases.

⚖️ 1. What Is Litigation Funding?

Litigation funding (sometimes called legal funding or pre-settlement funding) is when a third-party funder provides capital to support a legal claim in exchange for repayment from the settlement or judgment proceeds.

• For plaintiffs, this often covers urgent medical treatment or living expenses while the case is pending.
• For law firms, it can cover litigation costs, expert witness fees, or allow them to wait for full case value instead of settling early under pressure.
• For medical providers, funding or lien-based solutions can guarantee they’re paid for treatment given before the case resolves.
  
  

At Golden Pear, funding is non-recourse — if the case is lost, repayment isn’t owed.

🔎 2. Common Questions from Law Firms & Plaintiffs

Q: Does using funding affect case control?

A: No. Proper funding agreements leave all legal strategy and settlement decisions with the attorney and client. The funder is a financial backer, not a decision-maker.

Q: What happens if the case loses?

A: In non-recourse funding (Golden Pear’s model), the client owes nothing if there’s no recovery.

Q: How fast can a case get funded?

A: At Golden Pear, qualified new firms can get $2,000 auto-approved, and underwriting decisions for larger requests are often made the same day.

Q: Does funding weaken the case?

A: No. In fact, funding often strengthens leverage. With bills covered, clients and lawyers don’t feel pressured to accept lowball offers.

Q: Can funding cover ongoing medical care?

A: Yes. Pre-set funding allows injured plaintiffs to access surgery, imaging, or therapy up front so care isn’t delayed.

🏥 3. Common Questions from Medical Providers

Q: What is a medical lien?

A: A lien gives a provider the legal right to be paid out of the settlement before funds are disbursed to the plaintiff.

Q: Why is lien servicing so important?

A: Providers often wait 12–18 months for payment. A lien-servicing solution like MedRec actively negotiates and monitors cases to help them collect sooner and more reliably.

Q: What if the settlement isn’t enough to cover the lien?

A: Providers may negotiate reductions or accept partial payment. Having a lien-aware funding partner helps ensure the lien is prioritized and documented early to reduce surprises.

Q: Do providers take on risk treating PI patients?

A: Yes — delayed or reduced payment is a real concern. That’s why many providers prefer to work with funders who can give assurance of payment and handle follow-up.

💡 4. Rare but Important Questions

Q: Do funding agreements have to be disclosed in court?

A: Disclosure rules vary by jurisdiction. Some states and federal courts now require disclosure of third-party funding; others do not. It’s crucial for lawyers to know their local rules.

Q: Does funding encourage frivolous lawsuits?

A: Reputable funders perform rigorous underwriting and invest only in meritorious cases. The goal is to level the playing field for plaintiffs, not to inflate weak claims.

Q: Can liens be sold or advanced on?

A: Yes — providers can sometimes sell their receivables or use medical receivable funding to improve cash flow without waiting for the full case resolution.

Q: Does taking funding affect attorney-client privilege?

A: No. Privilege remains intact when information shared with the funder is limited to what’s necessary for underwriting and is covered by confidentiality agreements.

🤝 5. How Golden Pear Fits In

Golden Pear is designed to support all three key players in the PI ecosystem:

• For law firms: Same-day underwriting decisions, $2,000 auto-approved for new firms, transparent terms.
• For plaintiffs: Pre-set funding that pays for care when it’s needed, not after insurers stall.
• For medical providers: MedRec lien-servicing to help practices get paid faster and with less friction.

Litigation funding isn’t just a financial product — it’s a strategic tool that can keep cases strong, protect plaintiffs’ health, and sustain providers who deliver critical care.

Knowing the answers to both common FAQs and less obvious ones gives law firms an edge: stronger negotiations, better client relationships, and more predictable outcomes.

Golden Pear is committed to providing fast, transparent, and reliable funding so no one involved in a PI case gets left waiting.