Litigation funding is not appropriate for every plaintiff involved in a lawsuit, but it does have its advantages. It may be the only means to avoid an early settlement with compensation far less than the case is worth.
Let’s assume you were seriously injured in an auto accident. It may result in emotional and financial hardship. If you file a lawsuit, obtaining fair compensation can take time. You may be out of work and have exhausted your savings, but you still need to pay the bills. You may decide it is in your best interest to settle your case despite a settlement offer far less than full case value. While this may seem the best short-term solution, it can be a financial catastrophe in the long-run. When a plaintiff only wants to settle because s/he had no other financial alternatives, litigation funding could make sense.
With litigation funding, plaintiffs can pay off their debts with no restrictions; the money can be used for anything although recommended to pay the mortgage, medical expenses, or monthly household bills. Funding is provided on a non-recourse basis meaning repaying the cash advance is only made if, and when, the plaintiff successfully settles the case. This means plaintiffs can pay off their debt worry free and risk-free.
When you are struggling through your lawsuit for weeks, months, possibly even years the stress is not just financial. While legal financing can be expensive, settling for a fraction of case value because you need money could be the absolute wrong decision. Relieving the financial pressures can go along way in improving ones physical and emotional well-being.
Although litigation funding can provide a financial stop gap for those who have lost the ability to make ends meet during a long litigation process, this financial tool is not for everyone. It is important to talk with a funding expert to fully understand whether litigation funding makes sense for you. If you decide to apply, the funding company will review your case and if determine the case has merit, will wire the money into your account in less than 48 hours. Contact us today to learn how we can help you realize the true value of your case.