Lawsuit funding, otherwise known as legal funding or settlement funding
as the names suggest, issues cash in advance which helps to reduce the financial pressure you can expect while awaiting settlement for a case in court. This type of funding mostly deals with accidents or wrongful deaths where the plaintiff was clearly not on the wrong and there is a high possibility of settlement. One thing you need to know is that lawsuit funding isn’t for everyone. If you have the capability to wait out your case until the outcome is heard then you are better of waiting for the settlement. If you are experiencing extreme financial pressure or maybe the accident may have made you unable to carry out your daily work duties and therefore cannot receive any income, then you are the right candidate for lawsuit funding. There are a number of benefits that come with lawsuit funding and these include:
Leveling the Playing Field – In the event that you are going head on into battle with a big company or an individual who is well off, you can expect them to have hired the best possible legal team money can buy. Instead of settling for a legal aid representative who will do a mediocre job, you are better off getting lawsuit funding so as to get qualified representation that will get you the compensation you deserve. In this aspect, legal funding may be your best option.
Lawsuit funding will provide you with cash.
This can keep you going while you await settlement. There may be some bills that you may incur like the down payment for the lawyer or other such like bills that require some money. With lawsuit funding, you are ensured continuity in everything as you await settlement.
Ease Stress – Lawsuit funding will definitely reduce the stress you may be undergoing. It can help ease stress for you and your family because of the anxiety caused by the accident which was not anticipated. You can use these funds to take your family somewhere to take their minds off whatever may be happening.
No Settlement No Pay – A great advantage of lawsuit funding is that if you do not win the case or if you do not receive compensation then you are entitled to keep the money you had received from the lawsuit funding without having to make payment to the funding company. This means that you only pay back the company in the event that you win the lawsuit and are compensated or you settle out of court. This makes it a win win situation for the plaintiff.
Most lawsuit funding companies will offer lawsuit funding of between 10% and 15%. This means that after you have settled with the funding company and the lawyer, you will still retain a substantial amount of the settlement fee.
Lawsuit funding is definitely the way to go for those without money or with nothing to support them during the period of the ongoing law suit. If you already have some money set aside for emergencies such as an accident then you might want to avoid lawsuit funding.