A Simple, Step-by-Step Walkthrough From Application to Repayment Under HB 2518
If you’re considering legal funding while your Kansas lawsuit is pending, it helps to understand what the process looks like from beginning to end. The Kansas Transparency in Consumer Legal Funding Act (HB 2518) establishes important safeguards throughout the funding process, including attorney involvement, disclosure requirements, non-recourse protections, and cancellation rights.
Here’s what you can generally expect every step of the way.
Step 1: You Decide to Explore Legal Funding
Many plaintiffs begin looking into legal funding because they’re facing financial pressure while waiting for their case to resolve.
Common reasons include:
- Rent or mortgage payments
- Groceries
- Medical bills
- Transportation expenses
- Utility bills
- Childcare costs
- Lost income due to injury
At this stage, you may contact a legal funding company directly or discuss the option with your attorney.
Step 2: Initial Application and Intake
Typical Timeframe: 5 to 10 Minutes
The application process is usually simple and requires only basic information.
You may be asked for:
- Your name and contact information
- The date of the accident or injury
- The type of case involved
- A brief description of your injuries
- Your attorney’s name and law firm
Applications can often be submitted:
- Online
- By phone
- Through a mobile form
- Via text or email, depending on the provider
This initial step helps the funding company determine whether your case may qualify for review.
Step 3: Attorney Contact and Case Verification
Typical Timeframe: Same Day to 1 Business Day
After receiving your application, the funding company typically contacts your attorney.
During this stage, the company may:
- Confirm legal representation
- Verify that the case is active
- Request relevant case documents
- Review liability information
- Confirm treatment status
- Evaluate available insurance coverage
Because Kansas requires attorney involvement as part of the funding process, this step is essential and generally cannot be skipped.
Step 4: Underwriting and Case Evaluation
Typical Timeframe: 1 to 2 Business Days
The funding company then evaluates the merits of the claim.
Common underwriting considerations include:
- Strength of liability
- Severity of injuries
- Consistency of medical treatment
- Available insurance coverage
- Estimated settlement value
- Current status of the litigation
- Anticipated timeline for resolution
Unlike traditional lending, the focus is generally on the strength of the lawsuit rather than credit scores, employment history, or income.
At the conclusion of this review, the company decides:
- Whether your case qualifies
- How much funding can be offered
- What terms may apply
Step 5: Funding Offer Is Presented
Typical Timeframe: Same Day Underwriting Is Completed
If approved, you receive a formal funding offer.
The offer should clearly disclose:
- The amount being advanced
- The repayment structure
- The maximum repayment amount
- Your non-recourse protections
- Your 10-day cancellation rights
- Required attorney acknowledgment forms
Kansas law requires these disclosures to be presented clearly and in plain language.
Before proceeding, take time to review the details carefully.
Step 6: Attorney Acknowledgment
Typical Timeframe: Same Day
One of the most significant requirements under HB 2518 is attorney acknowledgment.
Your attorney must review the transaction and sign a required acknowledgment confirming:
- The agreement was reviewed with you.
- The terms were explained.
- The attorney has no financial interest in the transaction.
- Settlement funds will be handled through the attorney’s trust account.
- Repayment will be coordinated at settlement.
- The attorney remains independent from the funding company.
This step is designed to protect consumers and prevent conflicts of interest.
Step 7: Review and Sign the Agreement
Typical Timeframe: Same Day
Before signing, carefully review the entire contract.
Kansas requires the agreement to include:
- Plain-language terms
- Maximum repayment disclosures
- Non-recourse disclosures
- Attorney acknowledgment provisions
- Cancellation rights
Before signing, make sure you understand:
- How much you’re receiving
- How repayment works
- Your maximum repayment amount
- Your cancellation rights
Ask questions if anything is unclear.
Step 8: Funds Are Disbursed
Typical Timeframe: Same Day to 24 Hours
Once all required documents are signed, funds are generally released.
Funding is commonly delivered through:
- ACH transfer
- Wire transfer
- Electronic payment systems
Consumers often use these funds for:
- Rent and housing expenses
- Utility bills
- Food and groceries
- Medical costs
- Transportation
- Childcare
- Everyday household expenses
Because legal funding is non-recourse, there are typically no monthly payments while your case is ongoing.
Step 9: The 10-Day Rescission Period Begins
Timeframe: 10 Business Days
Kansas provides a valuable consumer protection known as the rescission period.
For 10 business days after funding, you may:
- Cancel for any reason
- Return the funded amount
- Walk away without penalties
- Cancel without additional fees or charges
This cooling-off period gives consumers additional time to evaluate their decision.
If you decide funding is not right for you, follow the cancellation instructions provided in your agreement.
Step 10: Your Case Continues
Typical Timeframe: Weeks, Months, or Longer
After funding is complete, your lawsuit proceeds normally.
During this period:
- You continue medical treatment.
- Your attorney negotiates your claim.
- Additional evidence may be gathered.
- Settlement discussions may occur.
Importantly, Kansas law prohibits funding companies from:
- Influencing settlement decisions
- Directing litigation strategy
- Interfering with attorney-client communications
- Affecting medical treatment decisions
Your attorney remains fully in control of the case.
Step 11: Settlement Is Reached
Timeframe: Varies by Case
If the case settles or results in a recovery, repayment is coordinated through your attorney.
The process generally involves:
- Your attorney requests a payoff statement.
- The funding company provides payoff information.
- Repayment is deducted from settlement proceeds.
- Remaining funds are distributed to you.
Kansas requires transparency during this phase to ensure everyone understands the financial breakdown.
Step 12: Final Settlement Statement Is Issued
The final step is distribution of settlement proceeds.
You should receive a settlement statement showing:
- Total settlement amount
- Attorney fees
- Litigation expenses
- Medical liens
- Legal funding repayment
- Your final net recovery
Review this statement carefully and retain a copy for your records.
Timeline Snapshot
Day 1
- Apply for funding
- Attorney contacted
- Case verification begins
Days 1-3
- Underwriting review
- Funding decision made
Days 2-4
- Agreement reviewed
- Attorney acknowledgment completed
- Documents signed
Same Day or Within 24 Hours
- Funds disbursed
Next 10 Business Days
- Rescission period remains open
Following Months
- Case proceeds normally
At Settlement
- Payoff requested
- Repayment processed
- Final settlement statement issued
Bottom Line
The Kansas Transparency in Consumer Legal Funding Act creates a structured, consumer-focused process from application through settlement. With attorney oversight, maximum repayment disclosures, non-recourse protections, plain-language contracts, and a 10-day cancellation right, Kansas plaintiffs have strong safeguards at every stage of the funding timeline.
Understanding each step helps you make informed decisions and ensures there are no surprises as your case moves toward resolution.