What is litigation financing?
Some of the confusion about litigation financing stems from the fact that this form of funding is sometimes referred to as a “lawsuit loan” and that leads some to think that litigation funding is simply another type of loan. In fact, a lawsuit advance is a NOT a loan because it is non-recourse. This type of financing allows plaintiffs who would not qualify for traditional financing to get advances against the expected proceeds of their settlements. Unlike a traditional loan, no employment verification or credit check is required, and there are no monthly payments. While a loan must be repaid – regardless of the debtor’s ability to repay it – a lawsuit advance is only repaid if and when the lawsuit is won at trial or settled out of court.
What is the difference between lawsuit funding and litigation financing?
They are the same thing. The service we offer goes by many terms including lawsuit advance, lawsuit cash advance, pre-settlement funding, legal funding, legal finance, litigation financing and lawsuit loans. While the term “loan” should not be used because the transaction is NOT a loan, the other terms are more or less interchangeable.
Who qualifies for a lawsuit advance?
If a plaintiff in a lawsuit has retained the services of an attorney, there are documented damages and compelling liability, and the defendant is capable of paying a judgment, the plaintiff meets our basic requirements. However, each request for funding is considered on a case-by-case basis. Our underwriter will request supporting documentation so he can thoroughly analyze the case.
Should I get a lawsuit cash advance?
The decision to get litigation funding should be weighed carefully. In general, if you need money and can get funding from a less expensive source, such as savings or a loan against a life insurance policy, you should take advantage of such less expensive options. However, for plaintiffs who do not have those options, a lawsuit cash advance makes a lot of sense.
What role does Litigationfinancing.com play in a lawsuit once it funds a client?
We provide funds to the client and take the position of any other lien holder. We are neither a back-seat driver nor a Monday-morning quarterback. We do not offer advice, nor will we question any decisions you or your lawyer make about the prosecution of your claim. We do not affect the outcome of the case in any way, and we will always support your decisions, regardless of the outcome.
What are the costs associated with lawsuit funding?
Litigationfinancing.com does not charge any application fees or other up front charges. And since the transaction is not a loan, we do not charge interest in the conventional sense. We charge a fee which is added to the advance at regular intervals and depends on how long your case is outstanding. The fee is determined on a case-by-case basis, depending on the strength of your case. The cost of the advance is explained to you when the advance is approved by the underwriter.
What types of cases qualify for litigation funding?
We invest in many types of cases, including:
- Personal Injury Lawsuits
- Automobile Accidents
- Industrial and Workplace Accidents
- Wrongful Death Claims
- Worker’s Compensation Cases (in some jurisdictions)
- Medical, Dental and Legal Malpractice
- Sidewalk, Walkway and Stairway Accidents
- Slip, Trip, Fall and other Premises Accidents
- Pharmaceutical Cases
- Head and Neck Injuries
- Burns, Dog Bites and Other Injuries
- Products Liability
- Construction Negligence
- Business and Commercial Litigation
- Contract Disputes
- Patent and Trademark Infringement
- Intellectual Property Claims
- Tortious Interference
- Fraud
- Anti-Competitive Conduct and Antitrust
- Commercial Construction Disputes
- Commercial Products Liability
- Divorce Suits
- Inheritance Claims
- Appellate Litigation
- Financing for attorneys and law firms
What are the benefits of litigation funding?
For a plaintiff in financial need, a lawsuit advance can be the difference between staying in his or her home or actually becoming homeless! For a plaintiff who cannot work, a lawsuit cash advance covers basic living expenses while he or she awaits the outcome the claim. And since there are no monthly payments, a lawsuit advance does not create yet another monthly obligation as a conventional loan would.
What are the benefits of litigation funding for the attorney and law firm?
Securing an advance for a client stops calls from that client asking when he or she will see money from the claim. And a lawsuit advance will enable a client in need of cash to turn down a low-ball offer from the defendant. Ultimately, litigation financing levels the playing field, especially against the well-financed defendant, enabling attorneys to win fairer, larger settlements for their clients.
When should an attorney recommend Litigationfinancing.com?
Only recommend us to the client who is facing financial hardship and needs cash to pay critical bills, such as rent or mortgage, car payment and utilities. The money should NOT be used for frivolous purposes, although the client is free to use the money as he or she wishes.
Why work with Litigationfinancing.com?
We are the premier provider of lawsuit funding. As one of the oldest, best known and most respected legal finance providers, you have confidence that you will receive fast, professional, and courteous service. You will also find that our underwriters make working with us as minimally interruptive to you and your attorney as possible. For example, when we request supporting documentation, we give you the option of submitting hard-copy or digital files, whichever is more convenient for you. We strictly abide by the ALFA Code of Ethics.
Is it ethical to recommend a client to a lawsuit advance provider?
All state bar associations that have ruled on the subject have issued favorable ethics opinions regarding an attorney’s ability to refer clients to non-recourse funding sources. In fact, referring a client to Litigationfinancing.com is no different than referring a client to a medical professional, CPA, tax advisor or investment counselor.