Pursuing a legal suit can actually put lot of strain on your finances as it requires a large amount of money to be spent on the same. But, instead of shelling out the whole money from your pocket, you can opt for litigation funding, which is a feasible financial loan that provides adequate support to your living and lawsuit expenses. If you are running out of your personal funds, and you are not in condition to file a case in court, you can go for litigation funding as your source of lawsuit fees. Litigation funding primarily helps in cases, where the bearer is facing personal injury as it bridges gap between your actual accident dates to the date on which the court has made settlement on your lawsuit. With litigation funding, you get cash in advance for the complete duration of your lawsuit.
In simple terms, financing a lawsuit is not considered as a loan, instead the funding company acquires a small part of your future settlement from the proceedings of your lawsuit, depending on the future result if your case. You will receive the specified amount of cash today in lieu of the specific amount of the judgment you will get in future against your lawsuit, which you have filed with the amount of litigation. Mostly, people opt for litigation funding to cover up the expenses of medical procedures and immediate living conditions.
Many of the private banks offer litigation funding for cases such as personal injury, employment discrimination, medical negligence/malpractice, wrongful death, etc. Technically speaking, litigation funding is a legal practice according to which, the individuals who acts as a complainant in a lawsuit receives immediate cash loan from the lawsuit finance company against a small part of individuals lawsuit settlement to be paid after the settlement of case. It means the money you get through litigation funding remains yours even the result of the lawsuit is negative.
Generally, companies offer litigation funding to the powerful cases, because for them the advancement of cash loan is a kind of investment. If the client wins his lawsuit the company receives agreed portion of the monetary compensation their client has been paid by the second party and if their client lose, they remain empty handed. Litigation funding has no risk factor for you as a person seeking litigation fund, because you not need to repay it if you fail to claim the settlement amount through lawsuit. But, if you get the claim, you might get more amount than what you have expected if you maintain to make the settlement early. The same will be proved true if even you pay the said portion of your settlement to the litigation funding firm.
Need of Litigation Funding
Litigation funding can be a bit expensive if you fail to make proper use of it. Most of the people with personal injury cases have to appoint attorney to present their lawsuit in court on the basis of contingent fees. If your lawsuit is unsuccessful, you not need to pay any fees to the lawyer. But if you win the case, the fees of attorney is equal to the small percentage of the settlement amount you have received. You will receive regular litigation funding from the firm until your case gets resolved. However, if you are paying all the fees of your lawsuit from your pocket only, the need for adequate legal funding becomes more critical. There is a reason behind this, when a person gets severely injured in an accident can be devastated financially due to regular medical procedures throughout. Many of the people have to take break from their work for months so that they can recover from the injury, which means no income for them and for the people depending on them for regular bread and butter. Unluckily, such cases doesn’t left victim in a position to apply for a traditional personal as they demand high rate of interest and monthly installment, thus increasing burden on the victim further. Litigation funding can be of great relief for the plaintiffs facing poor financial condition. It gives them a helping hand to fulfill their daily living expenses, medial fees, medicines, etc. This also prevents plaintiffs from selling their property and other valuable assets for keeping their life going. With litigation funding, victims can lead their life normally, bear medical expenses, pursue lawsuit without taking tension about the finances until their lawsuits gets settled.
How to Deal With Litigation Funding Firm
There is no dearth of companies offering litigation funding. Seeking legal funding from a reliable firm is actually very straightforward because all you need to do is to contact the company and have their free consultation. The company itself will follow up your case with the attorney, make exact evaluation of your case and settlement amount and also informs you about their procedure in a shortest possible time if they find you eligible. Such companies don’t charge any application fee and personal verification is also not required for litigation funding.
If you get authorized approval for the litigation funding, your attorney will take complete control of your lawsuit. However, the firm providing you litigation funds didn’t have anything to do with your lawsuit, thus they doesn’t get involved in that. They are also not eligible to ask for any payments until your lawsuit gets settled.
There are certain things to be kept in mind while choosing
the reliable litigation funding company:
- Make sure you finalize your litigation funding deal with a company, which is making
investmentfor its own development.
- Never ever let out your personal details about the case to the litigation fund firm, keep it to your attorney only.
- Making multiple applications to different litigation funding companies might ruin your chances of cracking the desired litigation funding deal, because there are some companies that sell deals to other leading litigation funding companies. Moreover, multiple applications will confuse your attorney and he/she might lose the track of your case. Make confirmed choices about such serious funding solutions.
- Check the complexities of your litigation funding contract with your attorney before you sign the agreement finally.
With so much of handy information about litigation funding available for your reference, now it has become easier for you to understand the complexities of litigation funding and handle them smartly in case you need to take benefit of the same