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.
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.
At Golden Pear, funding is non-recourse — if the case is lost, repayment isn’t owed.
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.
A: In non-recourse funding (Golden Pear’s model), the client owes nothing if there’s no recovery.
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.
A: No. In fact, funding often strengthens leverage. With bills covered, clients and lawyers don’t feel pressured to accept lowball offers.
A: Yes. Pre-set funding allows injured plaintiffs to access surgery, imaging, or therapy up front so care isn’t delayed.
A: A lien gives a provider the legal right to be paid out of the settlement before funds are disbursed to the plaintiff.
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.
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.
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.
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.
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.
A: Yes — providers can sometimes sell their receivables or use medical receivable funding to improve cash flow without waiting for the full case resolution.
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.
Golden Pear is designed to support all three key players in the PI ecosystem:
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.