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HomeBuyout & Refinance

Pre-settlement funding buyout: refinancing an advance you already have.

If you funded once, then again, and now nobody can tell you what you actually owe, you are not in unusual company. A buyout replaces existing advances with a single agreement you can read in one sitting.

What a buyout is

A pre-settlement funding buyout is when a second funding company pays off the advance you already took and replaces it with a new agreement of its own. Your original funder is paid directly and its lien on your case is released. You do not receive that money and you are not asked to settle the old contract yourself — you simply end up owing one company instead of two, on terms you agreed to with your eyes open.

It is sometimes called refinancing an advance, and it is the same idea: the debt does not disappear, it moves. Whether moving it helps depends entirely on how the new terms compare with the old ones over the realistic remaining life of your case.

Why balances run away

Compounding and time do most of the damage.

Two things drive a lawsuit advance balance far past what anyone expected. The first is compounding: when the cost is charged on a balance that already includes previous charges, the number accelerates instead of growing in a straight line.

The second is simply how long cases take. An advance that looked reasonable against a case expected to settle in a year looks very different three years later, and cases routinely take three years.

Stack two or three advances from different companies on the same claim and the total can approach or exceed what is left of the recovery. That is the situation a buyout exists to fix.

Signs it's worth a call

  • You have advances from two or more companies on one case
  • Your balance is compounding rather than simple
  • Your case has taken far longer than anyone expected
  • Your attorney has flagged that the liens may eat the recovery
  • Nobody will give you a straight payoff number

What to bring

Your existing funding contract or contracts, and a current payoff figure from each company if you can get one. If you cannot get one, tell us and we will request it with your authorization.

How a buyout works

We pay them. You deal with one company.

  1. Send us the existing contracts

    All of them. We need to see the actual terms, not a summary, because the structure of the existing deal is most of what determines whether a buyout helps you.

  2. We get payoff figures

    From each existing funder, with your written authorization, and we confirm them against your attorney's records.

  3. We tell you whether it's worth doing

    Sometimes it is not. If the existing terms are better than what your case supports today, we will tell you to stay put. That is a real answer we give.

  4. If it makes sense, we pay them directly

    The existing liens are satisfied and released. You are not handed money and told to go settle them yourself.

  5. One agreement, one payoff

    You get a single contract stating exactly what is owed at settlement, and one number to call. If additional cash on top is available and you need it, we can often include it.

An honest caveat

A buyout is not free money and it is not automatic. It only helps when the new terms genuinely beat the old ones over the realistic remaining life of your case, and it only works when the expected recovery can still support the total. If your case cannot carry it, no reputable funder should do it — and we will not.

Before you switch

When a buyout is the wrong move.

Most pages about buyouts are written to persuade you to do one. These are the situations where the answer is no, and we would rather you hear them here.

Your case is about to resolve

If a settlement is close, the remaining time is too short for better terms to make up any new origination cost. Sit tight.

Your existing terms are already good

Some contracts cap the total, or stop charges accruing after a set period. A cap you already have can be worth more than a lower headline elsewhere.

You mainly want more cash

Then say that. Additional funding on the same case may be simpler than a buyout, and comparing them honestly is the point of the conversation.

California

What California law changed for anyone refinancing.

If your funding contract is governed by California law, the California Consumer Legal Funding Act gives you protections that matter specifically when you are deciding whether to replace one agreement with another. Three of them:

  • Key contract terms — the amount funded, the itemised one-time charges, the maximum total that can be assigned and a dated repayment schedule — must appear on the first page of the contract, so an old contract and a new one can actually be compared side by side
  • You get five business days to cancel a new agreement after funding, without penalty, if you return the money
  • Charges on a covered contract stop accruing after 36 months. That is not a rate cap, but it does mean an old advance on a very long-running case may not keep growing the way you assume

That last point cuts against doing a buyout as often as it cuts for one. Check where your existing contract sits against it before you move.

Bring these to the call

  • Every existing funding contract, in full
  • The first page of each — that is where the numbers live
  • The funding date of each advance
  • A current payoff figure if you can get one

General information, not legal advice

We fund claims; we do not practise law. Which law governs your contract, and what it entitles you to, is a question for the attorney on your case — and under California law an attorney acknowledgment is part of a valid funding contract anyway.

For attorneys

Consolidating a client's liens

If you are staring at a disbursement sheet where three funding liens plus medical liens exceed the settlement, a buyout earlier in the case would have helped. It may still.

Send us the contracts and we will tell you plainly whether a consolidation improves your client's net or not. If it does not, we will say so and you have lost nothing but an email.

What we'll ask on the first call.

  • How many advances you have taken, and from whom
  • Roughly when each one was funded
  • Whether the pricing is simple or compounding
  • Whether any of them carry a cap
  • Where your case is: pre-suit, discovery, mediation scheduled, trial set
  • What your attorney currently expects the recovery to be

If you do not know the answers, that is normal and it is not a problem. Bring the paperwork and we will read it with you.

Your case takes time. Your bills don't wait.

Apply in about two minutes. We contact your attorney, review the case, and if you're approved you can have funds the same day. No credit check, no monthly payments, and if you lose, you owe us nothing.

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