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Lawsuit Settlement Loans in Arizona: How Do They Work?

Road accidents and premises liability are the top two reasons people file personal injury lawsuits in Arizona. You have two-year time limitations in Arizona to file your claim for personal injury. You could receive a settlement amount for damages, lost wages, medical bills, and pain and suffering if successful.

If you've been injured in an accident and are considering a lawsuit in Arizona but are short on funds, you may be wondering about 'How to get Arizona lawsuit funding?'. It is a type of loan that can help you pay your legal costs during your ongoing case in Arizona.

This post will discuss lawsuit funding, how it works, and who is eligible for it. In addition, it will answer some common questions about the process. If you're considering a lawsuit in Arizona, this post is for you.

Photo by Karolina Grabowska

What Is Lawsuit Funding?

Arizona has a 'compulsory coverage' rule. It means anyone who owns a vehicle must have liability insurance through a company authorized to do business in Arizona. The state minimums for car insurance in Arizona are $25,000 for bodily injury liability per person, $30,000 for bodily injury liability per accident, and $15,000 for property damage liability per accident.

If you suffer from an injury or damage in an accident, and the other driver is at fault, their insurance in Arizona should cover your damages. However, sometimes the other driver is either uninsured or underinsured. In these cases, you may be able to file a lawsuit against the other driver to recover damages.

Lawsuit funding, also known as litigation funding, is a type of financing that allows plaintiffs to receive cash advances on their pending lawsuits. One can use this funding to cover medical bills, living expenses, and legal fees.

Most lenders can provide lawsuit funding in Arizona through a lawsuit loan. The loan is a cash advance to the plaintiff in exchange for an agreed-upon percentage of the future settlement or verdict.

2) How Do Lawsuit Loans Work?

Lawsuit loans are funding that allows plaintiffs to receive money from their ongoing lawsuit before its completion. This funding is also known as pre-settlement funding.

Some factors associated can affect a plaintiff’s approval status for a loan in Arizona are the severity of their injuries, the type of case, and the strength of the plaintiff's legal team.

If you are approved for a loan, you will only have to repay the amount once you win your case. Some lenders in Arizona also give the added benefit of non-recourse loans. So, if you lose your case, you will not owe the lender anything.

The amount of money you can receive from a loan depends on many factors, including the type of case, how severe your injuries are, and the strength of your legal team.

One must repay loans within 12 to 24 months, but some lenders in Arizona may give you up to 36 months to repay the loan.

If you are considering applying for a lawsuit loan, it is essential to do your research and understand the process. There are many different lenders in Arizona, and each has its requirements and terms. Make sure you read all the fine print before signing any paperwork.


Arizona lawsuit funding can be an excellent option for people struggling to pay their bills while waiting for their cases to settle in Arizona. If you think this type of funding might be right for you, talk to your attorney and see if it is an option.