Article by Lawsuit Funding
Legal funding has become popular amongst plaintiffs looking to extend their personal injury claims in hopes for larger payouts. Due to the downturn in the economy and recent job loss, legal funding is being used by thousands of individuals on a monthly basis. The financial tool can be helpful to those plaintiffs that are strapped for money and need help paying bills. It also provides the plaintiff the ability to wait for a larger payout.
Over the last several years, legal funding has become increasingly popular within the legal community. Attorneys are using lawsuit funding as a way to litigate commercial litigation lawsuits & large personal injury claims, and many are now advising their clients to investigate this form of financing in place for an early settlement. Insurance companies have deep pockets and litigation can extend out for years before a verdict or settlement is reached. These companies all have a team of lawyers willing to hold up a verdict at all costs. These companies will intentionally hold up a case in hopes for a smaller payout.
When a legal funding company provides financing against a legal case, the borrower will be provided with a non recourse loan. This financial arrangement between the lender and the plaintiff is based upon a contingency fee basis. If a plaintiff loses their case, they don’t have to repay the loan.
If a person decides to secure legal funding the lender would be in line to receive payment after the attorney fees. The remainder of the money left over would be paid directly to the plaintiff.
There four different lawsuit funding types include:
* Pre settlement funding
* Post settlement funding
* Commercial litigation financing
* Law Firm loans
While alternative financial methods are preferred by some, legal funding certainly be a viable option to an early settlement.
If you are going to borrow money against your lawsuit, you should always consult with your attorney before signing a contract. Your attorney can review the contract to make sure you are getting what you applied for. You should never agree to a loan unless it’s non recourse.
About the Author
Related Funding Articles
Here a re few sites that may be useful to you. Thanks for stopping by.
Basel burden to affect bank prices - MSN ZA News
F.B.I. Struggles to Handle Financial Fraud Cases - NYTimes.com
"zjin: ""People upset...they are not directly benefiting or not benefiting ..."
Alaska Oil Spill Commission - Washington Post
Crowdfunding encyclopedia topics | Reference.com
Getting Started: Overview [SAP for MIT Documentation on the Web]