Depending on the complexity of the case (and numerous other factors), a lawsuit can extend into a lengthy process before settling. This development can put a considerable financial strain both on the plaintiff and the lawyer working on a contingency fee basis. However, there are alternatives to help ease the burden.
Beyond the classic lawsuit financing options like bank loans, there is the relatively new route of legal funding. This accessible and highly adaptable resource offers an appealing set of benefits to both the plaintiff and the lawyer who represents them. Legal funding is a welcome buffer against the costs associated with the successful resolution of a case.
The Basics of Legal Funding
Legal funding is a lawsuit funding alternative designed around the specifics of the legal system and with the plaintiff’s needs in mind. These funds can be accessed through a third-party funding company (often referred to as legal funding companies). What makes this stand out among other alternatives is that it employs non-resource transactions. Simply put, the amount accessed by the client has to be repaid only if they win the case.
Benefits of Legal Funding for Your Law Practice
A time-consuming litigation is a source of added strain and pressure for both plaintiff and lawyer. Clients left financially exposed during prolonged legal proceedings may seek to terminate the process prematurely, thus halting justice in its tracks. For the attorney representing the client, this means months of hard work wasted. Not to mention being unable to further practice law in their service and losing the chance to rejoice in a victorious outcome.
The fact remains that the plaintiff and lawyer have a relationship based on interdependence. The hardships of one have a bearing on the other. Legal funding allows lawyers to continue providing their expertise to clients and gradually build their case toward victory. Also, they can focus all their efforts on devising a solid legal strategy rather than being side-tracked by financial problem-solving.
Many practitioners live and work by the premise of empowering people to seek justice. Legal funding is merely another way to secure that. It serves as a means to level out the playing field in judicial battles.
Benefits of Legal Funding for Your Clients
A prolonged lawsuit can not only financially drain a plaintiff but also impact their general well-being and lifestyle. Clients often access legal funding for a personal injury lawsuit, as these cases are particularly subject to stalling. In an effort to reach a higher number of people seeking justice, legal funding companies cover a wide range of services, including nursing home negligence, medical malpractice, construction accidents, and many more.
Pre-settlement payments are widely available to anyone injured by the gross negligence of a third party and represented by a qualified attorney. However, the specifics of each case will determine the final eligibility. True to the original intent, these funds can be accessed by all who are in great financial need. Many legal funding companies do not consider poor credit scores or unverifiable income as disqualifiers.
Furthermore, clients are not required to pay any upfront fees to access their funds. Repayment is conditioned by the outcome of the case and is not due if the lawsuit is lost. Unlike alternative resources, legal financing offers clients considerable financial freedom in spending the amount according to their personal consideration. Thus, the amount can serve to cover rent, car payments, or other financial obligations.
An Accord Between Lawyer and Plaintiff
There are a few aspects to consider before accessing legal funding. By far, the most important one is that both the plaintiff and the lawyer representing them must agree to this option. Legal funding can only be awarded if there is an accord between the two parties. Also, this is designed as an alternative for people who are in dire need of financial assistance to stay afloat while seeking justice and should not be taken lightly.