In a nutshell, legal funding works through a process where a third-party funding company provides financial assistance to individuals involved in legal disputes. The process of gaining approval for legal funding, however, has a few general steps.
Please note that every legal funding agency will handle general steps differently. The goal of this article is to simplify the legal funding application process, followed by how legal funding groups are paid for their financial assistance.
Legal Funding Steps
There are steps or phases behind every case backed by legal funding. The following steps are generalized and simplified to give a brief overview of how the legal funding process works.
Applying for Legal Funding
The individual (plaintiff) applies for legal funding with a funding company. The application often involves providing details about the case, including the nature of the legal dispute, the expected damages, and the amount of funding needed.
Legal Funding Case Evaluation
The funding company evaluates the merits of the case. This evaluation includes assessing the likelihood of success, potential damages, and the overall strength of the legal claim.
Approval
If the funding company determines that the case has merit and is likely to result in a favorable settlement or judgment, they may approve the funding request. Approval is not solely based on the financial status of the applicant but rather on the strength of the legal claim.
Entering a Funding Agreement
Once approved, the funding company and the individual enter into a funding agreement. This agreement outlines the terms and conditions of the funding, including the amount provided, the fee structure, and the repayment terms.
Use of Funds
The individual can use the funds obtained through legal funding to cover various legal expenses. This may include attorney fees, court costs, expert witness fees, medical bills, and living expenses during the litigation process.
Non-Recourse Funding
Legal funding is typically non-recourse, meaning that the individual only repays the funding if they win the case. If the case is lost, the individual is not obligated to repay the funded amount.
Repayment
Repayment is typically made from the proceeds of the settlement or judgment. Once the case is successfully resolved, the funding company receives its agreed-upon share of the settlement or judgment amount.
Confidentiality
The details of the legal funding arrangement are generally confidential, and the funding company does not typically interfere with the client’s legal strategy.
Everyone considering legal funding needs to carefully review the terms of any funding agreement presented to them. This includes things like the fee structure and repayment terms. The goal of legal funding is to allow people access to the financial resources needed to pursue their legal claims without the immediate burden of out-of-pocket expenses.
Legal Funding From Cash Now Funding Group
Are you or a family member in need of financial assistance due to a lengthy legal battle? Are you preparing for a long-term legal battle to get the compensation you deserve? Cash Now Funding Group can be the financial lifeline you need while your case settles. Applying is free and confidential & no credit check is required.
