Need Money While Waiting for a Settlement? Alternatives to a Lawsuit Advance

By Michael Shemtoub, trial attorney, Beverly Law. Updated November 2026.

Insurance you may already have

The Texas Department of Insurance describes medical payments coverage simply: it “pays your and your passengers’ medical bills,” including when you are hurt in someone else’s car or on foot. You claim it from your own insurer while the injury claim is still open. Beverly Law’s page on MedPay in California explains how claims are made.

Personal injury protection, or PIP, can also replace income. In Washington, PIP is optional coverage that insurers must offer (RCW 48.22.085), and PIP on a policy must provide at least $10,000 in medical and hospital benefits, $10,000 in income continuation (up to $200 a week), $5,000 for loss of services (up to $200 a week) and a $2,000 funeral benefit (RCW 48.22.095). The Texas Department of Insurance says “all auto policies in Texas include PIP coverage” unless you rejected it in writing, and that PIP covers lost wages and other nonmedical costs as well as medical bills (TDI auto guide; Tex. Ins. Code 1952.152). Ask your lawyer to check every policy in your household and the policy on the car you were in.

Your health insurance should keep paying for treatment too. It may later ask to be repaid from your settlement, which is what a subrogation letter is about.

Benefits that replace lost wages

California’s State Disability Insurance pays “between $50 to $1,765 each week for up to 52 weeks,” figured at 70% to 90% of the wages you earned in a base period. To qualify you must be unable to do your regular work for at least eight days, have lost wages, have been working or looking for work when the disability began, have earned at least $300 with SDI taken from your pay, and have a doctor certify the disability (EDD).

Washington’s Paid Family and Medical Leave covers a serious illness or injury that keeps you from working if you worked at least 820 hours in the qualifying period. Most people can take up to 12 weeks a year, with your health care provider setting the length of medical leave, and benefits reach up to 90% of weekly pay with a 2026 maximum of $1,647 a week (Paid Leave). If your state has a similar program, its labor department will list it.

Unemployment is a poor fit while you cannot work. California requires you to be “physically able and available to work” (EDD), and Washington’s agency says the same (ESD). It becomes an option once a doctor releases you and the old job is gone. If you were hurt on the job, workers’ compensation is the main source of wage benefits; see our page on workers’ comp settlement advances.

Social Security for long-term injuries

Social Security disability requires a condition that “has lasted or is expected to last for at least one year (12 consecutive months) or to result in death,” and SSDI generally has a five-month waiting period before benefits start (SSA). SSDI is based on your work record; SSI is for people with limited income and resources (SSA Red Book). Because of the wait, it can make sense to apply as soon as the injury looks long-term. If you receive SSI or Medicaid, read how a lawsuit advance can affect SSI and Medicaid before taking any money.

Bills, creditors and community help

The Consumer Financial Protection Bureau suggests calling creditors before you miss a payment and explaining why. It says they “may be willing to forgive a late fee and to make short-term arrangements,” and that creditors may agree to an affordable repayment plan if you are in good standing (CFPB). Ask landlords, utilities and car lenders about hardship programs in writing.

Dialing 211 reaches a confidential referral line for help with housing, utility bills and food, and 211.org finds your local office. A Spanish site is at es.211.org.

For medical care you cannot pay for now, some providers will treat you on a lien or a letter of protection and wait to be paid from the settlement. That money still comes out of your recovery. See medical liens after a car accident and funding and medical liens.

Money from the claim itself

The damage to your car is often a separate part of the claim. In California, insurers must follow specific rules for vehicle claims, including inspection deadlines and how a total loss is valued (10 CCR 2695.8). Ask your lawyer whether the vehicle claim can be resolved now, and read any release before you sign it so it covers only the property damage.

Help from your own lawyer

The rules depend on the state. In California, once a lawyer is retained, the lawyer may lend a client money on the client’s written promise to repay, after meeting the conflict rules (rule 1.8.5). Texas Rule 1.08(d) lets a lawyer advance “reasonably necessary medical and living expenses, the repayment of which may be contingent on the outcome of the matter” (Texas rules). Washington’s comment to the rule says lawyers may not make or back loans to clients for living expenses (RPC 1.8, cmt. 10). Our page on whether your lawyer can give you money before settlement covers other states. Texas cases are handled by the firm’s Texas-licensed attorneys, Joyce Ondich and John Efstathiou.

What to ask before you sign

Bring these questions to your lawyer before you apply for any advance:

• Is there MedPay or PIP on my policy, a household member’s policy, or the vehicle I was in?
• Have my disability or paid leave claims been filed, and when will they pay?
• Can the property damage claim be paid now?
• Will my doctors treat on a lien until the case resolves?
• When is the case likely to resolve, and what would I likely keep after fees and liens?

If an advance still makes sense after that, the lawsuit cash advance guide explains how the contracts work.

Common questions

Related pages

Cash advance on a lawsuit · Laws by state · Injury law FAQs

Important: This page is general information, not legal or medical advice, and reading it does not create an attorney-client relationship. Every case is different; talk to a lawyer about yours. Texas cases are handled by the firm’s Texas-licensed attorneys, Joyce Ondich and John Efstathiou. Last reviewed: November 7, 2026.