If you are in the midst of a lengthy litigation process, you may be wondering: What is legal funding and do I need it?
Luckily you have come to the right place. We are going to explore what types of legal funding are available and whether or not you might need it.
Types of Legal Funding
There are two types of legal funding, and they are available to plaintiffs and divorce lawyers, tax attorneys, or any other attorney with an active license. The first type of legal funding is pre-settlement, and the second is post-settlement funding.
In most cases, you will need either of these types of funding due to a routine personal injury case, which can have a lifetime of up to two years.
As mentioned above, personal injury cases can last up to two years. It is only natural for both layer and the plaintiff to need a source of capital to cover various expenses related to your lawsuit.
Pre-settlement funding for attorneys is helpful when an attorney needs travel, discovery, witness, and administrative costs while waiting for a settlement or verdict. A pre-settlement advance allows attorneys the time and money to build a better case and avoid settling for a low offer.
If a plaintiff needs immediate access to capital pre-settlement lawsuit funding can be a great option. A plaintiff can qualify for pre-settlement financing if they have already secured an attorney and filed a legal claim. The plaintiffs will typically be approved within forty-eight hours.
Post Settlement Funding
After a verdict has been decided in a lawsuit, it can take months or even years before settlement awards are paid out. This is an excellent option for those wanting to avoid the risks associated with pre-settlement funding.
Delayed legal fees can cause all sorts of problems for attorneys struggling to pursue new cases. Post-settlement funding allows attorneys to receive payouts soon after a verdict has commenced. This way, securing and maintaining a functioning practice is not hindered due to settlement award delays.
Plaintiff financing for post-settlement complainants is non-recourse. This implies that if the obligor could not pay the agreed settlement quantity, the complainant would still retain any part of the settlement advanced under a legal financing contract.
Legal Funding – Real Life Example
If you are still a bit confused about the legal funding process, the NFL Concussion Settlement represents a great real-world example of the process. Many retired NFL players are currently suffering from neurological diseases, including Alzheimer’s, dementia, and CTE (chronic traumatic encephalitis). These illnesses resulted from years of hazardous gameplay with inadequate protection.
Current appeals are preventing many retired NFL players from receiving their settlement of over $65 million. Meanwhile, the players and their families are suffering from illness. Legal funding provides financial advances to players so that they can access the medical care they need.
Rebuild Your Life with Legal Funding
Legal funding provides a solution for layers and plaintiffs who need capital but are unable to access traditional financing methods. Law Firms and clients can receive advances based on the strength of the case at hand. With the help of legal funding, attorneys gain the ability to grow their practice, and plaintiffs have the opportunity to rebuild their lives.