Legal financing has been around for more than 10 years however most plaintiffs and attorneys are still unaware the option exists. While this tool is still a fairly new financial tool, thousand of people are taking advantage of borrowing against their lawsuit.
When a person is involved in a personal injury lawsuit or commercial dispute they may secure financing against the future and expected proceeds from the case. When a company provides legal financing against a lawsuit, the borrower will repay the advance after the case is settlement or a verdict is won. It is important to understand that legal financing should always be non recourse. This means if the client loses his or her case, they are not legally responsible for paying back the loan. The only recourse to a lawsuit loan is the actual compensation from the case.
Legal financing is typically used by those plaintiffs that can't afford to wait for a settlement or judgment. They will borrow money in hopes their attorney can negotiate a better overall settlement; alleviating the need to settle for less. Because legal financing is offered on a non recourse basis, naturally the rates will be higher than a standard bank loan. While most investments will pay a handsome percentage to the lender, there are cases in which an investment is lost. These rates counterbalance lost investments.
When a person applies for legal financing they can use the money for personal reasons. Many people will use the money to help pay for their rent, mortgage, car payments, medical bills, food and other out of pocket expenses.
Legal financing is oftentimes used by those individuals that can't afford a lengthy legal process. When a person is having a hard time reaching a settlement and can't wait months or years before the lawsuit is concluded, they may borrow against their case. If legal financing wasn't available, some people may be forced into a smaller settlement offer. Legal financing can help you buy more time in hopes for a larger settlement offer.
If you have been involved in an accident and never filed an injury claim, it's a good idea to contact an attorney. Any person that is filing a personal injury claim will be forced to make tough decisions. These decisions are oftentimes based upon a person's ability to financially sustain. When an injury claim is filed against the defense you will be faced with an uphill battle.
Insurance companies employee some of the best defense attorneys money can buy. These attorneys have the fiduciary responsibility to the insurance company and not the victim. There main job is to keep settlements at a minimum and in some cases go into litigation with the claimant. While most personal injury lawsuits settlement before going to trial, there are cases in which the case will be heard in the court of law.
If a person believes the case is heading into litigation they may be more likely to settle the suit instead of waiting 6-12 months before the case is heard. When a person accepts a premature settlement that only pays a portion of what the case is worth, it can spell disaster. Many people will accept settlements without considering ongoing medical expenses; only to find out several months later that the settlement only paid a small fraction of what the case was really worth.
Legal financing is a viable option to a smaller settlement. If you are considering legal financing against your lawsuit, contact LawLeaf.
Check out the author’s other blogs: bay area jobs and nursing jobs san francisco. LawLeaf is a lawsuit funding company that offers services throughout the United States and Canada. If you are considering a lawsuit loan against your case, contact LawLeaf today.
Legal Financing with RD Legal Funding Joe Genovesi07:34Rd legal funding senior vice president joe genovesi explains his company's role in the legal finance industry.
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