Pre-settlement funding is designed to help plaintiffs stay financially stable while they wait for their case to resolve. But many clients have questions about which expenses the funds can legally cover—especially when it comes to medical liens, legal fees, or other case-related costs.

This article breaks down what you can and cannot use pre-settlement funding for, how it interacts with medical liens, and why responsible use matters for protecting your settlement.

What Pre-Settlement Funding Can Be Used For

Pre-settlement funding offers plaintiffs immediate financial support for essential needs. Because it is your money in advance, you can decide how to use it.

Common approved uses include:

• Rent or mortgage payments

• Utilities and household bills

• Groceries, transportation, and childcare

• Medical co-pays and out-of-pocket treatment costs

• Lost income replacement

• Everyday personal expenses

Pre-settlement funding exists to help you maintain stability while your attorney pursues the compensation you deserve.

Can You Use Pre-Settlement Funding to Pay Medical Liens?

Yes—funds can be used to reduce or pay off medical liens, but it’s essential to coordinate with your attorney.

Here’s why:

• Medical liens must be repaid from the settlement

• Paying them earlier can reduce interest or collection pressure

• Your attorney may be negotiating lien reductions

• Paying too soon may remove your lawyer’s ability to negotiate a lower payoff

This means plaintiffs should always consult their attorney before using funding to pay a lien.

In many cases, attorneys prefer to handle liens at the end of the case to secure reductions—saving you money.

Can Pre-Settlement Funding Be Used to Pay Legal Fees?

No.

Pre-settlement funding cannot be used to pay:

• Attorney fees

• Court filing costs

• Expert witness fees

• Case expenses covered by the law firm

Personal injury cases operate on a contingency fee model, meaning:

• Your attorney only gets paid if your case wins or settles

• All legal fees come out of the final settlement—not your pockets

• Your law firm covers upfront case costs, not you

Using funding for legal fees is unnecessary and restricted to protect plaintiffs.

Why These Restrictions Exist

Pre-settlement funding protects plaintiffs—not law firms. That’s why:

• Attorneys control legal expenses

• Plaintiffs control personal expenses

• Funding companies avoid influencing the legal process

• Agreements are structured to protect your final settlement

These lines ensure ethical, conflict-free handling of both financial and legal matters.

When It Makes Sense to Use Funding for Medical-Related Costs

While paying liens early is often not recommended, funding can be extremely helpful for:

• Medical co-pays

• Physical therapy

• Prescription medications

• Mental health care

• Transportation to medical appointments

• Assistive devices (crutches, braces, wheelchairs, etc.)

These costs directly support your recovery and strengthen your legal case by documenting ongoing treatment.

Why Plaintiffs Trust Instabridge

Instabridge structures every funding decision around your financial well-being and your attorney’s legal strategy. We offer:

• Fast approvals within 24–48 hours

• Clear, flat-rate pricing—no hidden fees, no compounding interest

• Non-recourse protection—you owe nothing if your case doesn’t win

• Attorney coordination to ensure ethical, strategic use of funds

• Guidance on responsible spending to protect your settlement

We’re here to help you stay secure—not complicate your case.

Conclusion: Pre-Settlement Funding Supports You, Not the Case

Pre-settlement funding exists to help you live, heal, and stay financially stable—not to pay legal fees. While funds can be used to address certain medical obligations, it’s always best to work closely with your attorney to ensure lien strategy isn’t disrupted.

If you're struggling with bills, medical costs, or daily expenses while waiting for your settlement, Instabridge can help. We provide fast, ethical, and risk-free financial support so you can move forward with confidence.

Contact Instabridge today to discuss your options and get the relief you need.