Everything to Know about Litigation Financing.
When you are in a lawsuit, you look forward to the results turning in your favor. When you talk of litigation funding , it is a practice where a third party that is not involved in a case provides funding to the plaintiff involved in the lawsuit. The merit of your case is the factor that will determine whether you will have the lawsuit financing you need or not because the person funding you needs to know he will have his money back.
Lawsuit financing is no loan hence the need for the lawsuit funding company to look into the case itself before any steps are taken. It is simply an assignment of the portion of the client or attorney’s interest in anticipated recovery of the client. The hard fact is that if money is lost when the case is lost . When it comes to a case being financed, some may question on the ethical nature of a lawyer referring a client to a lawsuit financing party.
The case is ethical if its proven that the lawyer has no interest in the lawsuit financing company or party. To polish off on the ethical requirements, the lawyer should not in any way profit from the transaction that is going to happen. The lawsuit company should also not be involved in the lawsuit in anyway. There are benefits that come with clients being refereed to litigation finance companies . If a client gets to secure financing from a source that they had not anticipated , it will definitely ease the burden. Lawsuit companies come in handy especially if the client has no way to raise the money needed to finance the lawsuit that they are involved in . To secure pre-settlement advance, you have to undergo a process but it’s not complicated. Litigation companies will require you to fill some application to help them evaluate the case at hand.
The merits of the litigation case are assessed and if the parties representing the company have questions the attorney is called upon to provide answers. The clients waits for a day or two after submission of the case documents to receive a verdict on whether the company will support the case. If the case is taken , the company will forward a contract to the attorney representing the case, here they will outline transactions , rates and how they will receive the money from the company. Some cases of the litigation cases may be settled already but approach litigation companies for financing . Medicare solutions, distribution protocols or court order approval among other reasons may occasion the need for post settlement advances.