Process
How Attorneys Handle Pre-Settlement Funding Payoff at Settlement
• 2 min read
Attorneys disburse settlement funds in a standard order. Here's where your pre-settlement advance fits in.
When your case settles, the carrier sends the settlement check to your attorney's trust account. Your attorney then disburses funds in a standard order: attorney fees, costs, liens (medical, ERISA, Medicare/Medicaid), pre-settlement funding payoff, and finally the net to you.
Pre-settlement funding companies coordinate the payoff directly with your attorney's office. You don't have to write the check or set up payment.
Your attorney receives a payoff letter from the funding company showing the exact amount due at settlement. The letter accounts for the timing of the settlement.
After all liens and the funding payoff are satisfied, the remaining settlement goes to you — usually within 14 to 30 days of the carrier's check clearing.
AARC works transparently with attorneys throughout this process. There are no surprises at settlement.
Call (800) 297-3834 or apply online with confidence that the back-end disbursement process is well-established.
Frequently asked questions
- Does my attorney have to be involved?
- Yes. AARC works directly with your attorney's office to verify the case and coordinate repayment out of the eventual settlement.
- Is a pre-settlement cash advance a loan?
- No. It is non-recourse funding tied to your personal injury claim. There are no monthly payments, and if your case does not recover, you owe nothing.
- Do I need good credit or a job to qualify?
- No. AARC does not run a credit check and does not require employment or income verification. Approval is based on the strength of your claim and your attorney's representation.
- How fast can I get funded?
- Most approved applicants receive funds in as little as 24 hours once AARC has the case documents from your attorney.
- How much does it cost?
- AARC uses a flat fee rather than compounding monthly interest. Typical advances are $500, $750, or $1,000, and the illustrative payoff at settlement is 2x the advance amount.
About the author
Written by the funding team at AARC — Accident Advance & Resource Center. AARC underwrites pre-settlement cash advances for personal injury claimants and works directly with plaintiff attorneys across 45 states. Our team reviews case documentation daily and writes from that firsthand experience.
This article is general information, not legal or financial advice. Always confirm details with your attorney. Contact AARC or call (800) 297-3834 with questions about your specific case.
