Guide

What Happens to Pre-Settlement Funding If You Change Attorneys Mid-Case?

What Happens to Pre-Settlement Funding If You Change Attorneys Mid-Case?

Jan 26, 2026

Jan 26, 2026

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Changing attorneys during a lawsuit is more common than many plaintiffs realize. Sometimes communication breaks down, strategies differ, or the relationship simply isn’t the right fit. When that happens, plaintiffs often worry about how the change will affect their pre-settlement funding.

The good news is that changing attorneys does not cancel your pre-settlement funding. In most cases, funding remains intact and can continue smoothly with proper coordination. This article explains what happens, what to expect, and how to avoid disruptions.

Why Plaintiffs Change Attorneys

There are many valid reasons a plaintiff may decide to change legal representation, including:

  • Lack of communication or responsiveness

  • Disagreements over strategy or settlement timing

  • A case becoming more complex than expected

  • Referral to a specialist firm

  • Personal comfort or trust issues

Changing attorneys is a legal right—and it does not mean your case is weak.

Does Changing Attorneys Cancel Your Funding?

No.
Pre-settlement funding is tied to your case, not to a specific attorney.

Key points:

  • Your funding agreement remains valid

  • You are not required to repay funding because of an attorney change

  • There are no penalties for switching attorneys

  • Repayment is still required only if you win or settle

As long as the case continues, your funding remains in place.

What Needs to Happen When You Switch Attorneys

When an attorney change occurs, a few administrative steps are required:

  1. New Attorney Confirmation
    The funding provider must confirm representation with your new attorney.

  2. Updated Case Information
    The new attorney provides current case status, strategy, and documentation.

  3. Lien Acknowledgment
    The funding lien is re-acknowledged by the new firm to ensure repayment at settlement.

These steps are routine and typically resolved quickly.

Will Changing Attorneys Delay My Case or Funding?

In most situations, no significant delay occurs.

However, brief delays may happen if:

  • The new attorney needs time to review the file

  • Case documentation must be updated

  • Communication between firms takes time

Reputable funding providers work efficiently to minimize disruptions.

Can You Receive Additional Funding After Changing Attorneys?

Possibly. Additional funding may be available if:

  • The case remains strong

  • The new attorney confirms viability

  • Existing funding hasn’t over-leveraged the case

Instabridge reassesses cases responsibly after attorney changes to protect the plaintiff’s final recovery.

What Happens if the Previous Attorney Had Costs or Liens?

If your previous attorney incurred costs or has a lien, those issues are typically resolved between attorneys at settlement. Pre-settlement funding:

  • Does not interfere with attorney fee disputes

  • Does not increase your personal risk

  • Remains attached to the case outcome

Your new attorney will handle allocation at resolution.

Why Transparency Matters During an Attorney Change

It’s important to notify both your funding provider and new attorney promptly. Clear communication ensures:

  • No funding disruption

  • Accurate case evaluation

  • Proper lien handling

  • Smooth continuation of your lawsuit

Instabridge guides plaintiffs through this process step by step.

Why Plaintiffs Trust Instabridge During Attorney Transitions

Instabridge is experienced in handling attorney changes. We provide:

  • Quick coordination with new counsel

  • Clear explanations of next steps

  • Non-recourse funding protection

  • Flat-rate, transparent pricing

  • Ongoing support throughout the transition

We focus on continuity—not complications.

Conclusion: Changing Attorneys Doesn’t Mean Losing Support

Switching attorneys is sometimes necessary to protect your best interests—and it doesn’t mean your funding disappears. Pre-settlement funding remains in place, allowing you to maintain financial stability while your case continues under new representation.

If you’re considering changing attorneys or have already done so and have questions about your funding, contact Instabridge today. We’ll ensure a smooth transition and continued support while your case moves forward.

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