Risks & Considerations
What Happens If I Lose My Lawsuit?
Educational content — not legal or financial advice.
One of the most important features of properly structured non-recourse lawsuit funding is what happens if your case is unsuccessful. This is a key difference from a conventional loan, and worth understanding clearly before you apply.
Non-Recourse Means Tied to Outcome
Under a non-recourse agreement, if your case does not resolve in your favor, you are typically not personally required to repay the advance out of pocket. Repayment is tied to the outcome of your case, not your general finances.
What to Confirm Before You Sign
Always confirm the non-recourse structure explicitly in writing, and review the full agreement with your attorney before accepting funding. Ask directly what your obligations would be under every possible case outcome.
Frequently Asked Questions
Does 'non-recourse' mean there's no risk at all?
It means you generally aren't required to repay the advance out of pocket if you don't win. It doesn't mean there's no cost if you do win — the advance and its cost are still repaid from your proceeds in that case. Review your specific agreement carefully.
Related: Lawsuit Funding
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