Litigation Funding: Providing cash advances to plaintiffs and attorneys even before their lawsuit cases are settled. It is a contingent transaction in which litigation financing is advanced based solely on the merits of a pending lawsuit.
Litigation funding is repaid only upon successful verdict or settlement of the lawsuit. If the plaintiff or attorney loses the lawsuit case, the litigation loan is never paid back to the litigation financing company.
Litigation - A case, controversy, or lawsuit. A contest authorized by law, in a court of justice, for the purpose of enforcing a right. Participants (plaintiffs and defendants) in lawsuits are called litigants.
For plaintiffs the litigation process is long, stressful and tiring. The legal system is uncharted territory for most of them. Many times litigation process is disruptive and painful life experience for them as well for their families. Even when they win their lawsuits, plaintiffs may not receive payment for months or even years.
Every body knows that Litigation process is mostly very expensive. Since the average plaintiff in a tort case does not have the money or the staying power to enter the arena against a giant opponent, the defendant, at this crucial time the litigation funding is a major help.
Litigation financing or litigation funding enables plaintiffs involved in lawsuits to receive cash money months or years before their cases have settled, some times even before the complaint is filed.
What are the other available alternatives?
1. You can use your own credit cards: This is an expensive alternative and you still have to pay your monthly credit card bills. But litigation loan is a non-recourse, which you pay back to litigation financing company only if you win or settle the case.
2. You can borrow money from friends or family: This also is high risk, especially if, you lose the lawsuit and you may not have the money to pay them back. But that is not with litigation funding as it is a non-recourse litigation loan.
3. You can take out a bank loan: Banks do not generally make loans against future lawsuit settlements, but may offer a personal line of credit to individuals, based on their financial situations and credit worthiness.
Even if you do qualify, you have to start paying back a bank loan right away and continue making payments until it is paid off, even if you lose your case and receive no money. But this does not apply to your non-recourse litigation funding or litigation loan.
4. You can obtain a home equity loan or second mortgage: This option is extremely risky. If for some reason you do not win your litigation case, you could lose your home. But that is not with the litigation funding or litigation loan.
Litigation Financing - Litigation Funding is safe and fast:
You can secure litigation financing or litigation funding in three easy and quick steps:
1st. Step - Submit the Application: When you apply for litigation financing there is no application fee. A good litigation funding company should not charge any upfront fee or any application fee, processing fee or any monthly fee.
2nd. Step - Your attorney faxes the required documents to litigation funding company. Approval is always fast for litigation financing. Mostly in 24 to 48 hours (some times in 4-6 hours).
3rd Step - If approved for litigation financing, funds are wired into your bank account, the same day. Of course, you can take a bank check also.
Once you get a litigation financing or litigation funding, you do not pay back until you win or settle the case.
What your attorney needs, in order to get you the best settlement or fairest trial, is time. Just as the defendants can buy time, so can you. Litigation funding or litigation financing, allow you to get relief from financial pressure so you do not have to settle your case simply because you need whatever money you can get now. For more details you can call on 020 7626 0191