Are you a plaintiff or an attorney involved in a lawsuit and need more money to continue your case? Lawsuit funding may be the way to go. Since this service has only been available for a few years now, most attorneys and hardly any individuals are aware of the fact that they can receive cash advances for pending lawsuits.
What Is Lawsuit Funding? Lawsuit funding – often referred as lawsuit loans, litigation financing, and legal finance – is a new segment of the cash flow industry. But, it is growing very quickly. Essentially, a funding company provides a cash advance to a plaintiff in a lawsuit against the favorable outcome of the case.
In other words, based upon the strength of the lawsuit, the lawsuit funding company will provide an advance (normally, in the range of 10-15%) on the amount of money the plaintiff is expected to receive, should he win his case. This advance is non-recourse. This means, that should the plaintiff not win the case, he does not owe the funding company any money in return. Lawsuit funding is not a typical loan because the money does not have to be paid back, unless the case is won or settled.
Why Lawsuit Funding? It levels the lawsuit playing field. Typically, lawsuit defendants (insurance companies, large manufacturers, banks, etc) have deep pockets. The plaintiffs are normally average, ordinary citizens. These large companies tend to string the process out, hoping that the plaintiff will run out of money and quickly settle the case for a small sum of money.
Take for instance, slip and fall cases and auto accidents. These cases account for more than 3 million injuries each year in the US. Many result in job loss, severe injuries, paralysis, and head traumas; some are permanent and irreversible. Many require continual, expensive medical care – the cost of which can easily bankrupt a family. This is where lawsuit funding can help.
A lawsuit cash advance will allow the plaintiff to pay his or her medical bills, mortgage payments, and other household bills. The problem is: Most lawsuit plaintiffs do not know they can get a lawsuit loan. They can qualify for funding, ranging from $250 to over $1M for an individual case and up to $10M for a commercial case. summons and complaint
How Does Lawsuit Funding Works? It is very simple and straightforward: The plaintiff fills out an application and submits it to the lawsuit funding company. The company contacts the plaintiff and his lawyer and asks background questions about the case. The funding company sends the plaintiff a contract, the plaintiff signs and the company transfers the money into the plaintiff’s bank account or FedEx’s the funds directly to the plaintiff (whichever the plaintiff chooses).
Advantages of Lawsuit Funding. Lawsuit funding offers many advantages: it is confidential, prompt and discreet; there is no risk to the borrower; applications are free, and without obligation; there are no upfront fees, nor any processing or monthly fees; there are no credit or employment checks; bad credit – even no credit – is okay; the underwriting process is quick – as little as 6-8 hours; a client can have money in hand the very same day; funds can be for any purpose; plaintiff pays back the advance, only if he or she wins; if the client loses the case, he or she owes nothing; all information is kept confidential; you do not need your attorney’s approval; and its available for all types of civil and commercial lawsuits.
Who is eligible for Lawsuit funding? If you are involved in any type of lawsuit, such as: personal injury, product liability, auto accident, patent infringement, malpractice (medical, legal, construction), employment discrimination, fraud, breach of contract, Mesothelioma, negligence, workers compensation, class action, civil rights, whistle blower (qui tam), workers compensation (not in all states), wrongful death, commercial litigation etc.; and you are represented by an attorney, you may qualify.