Lawsuits can be difficult, especially on your finances. Standard bank loans often carry interest rates that make them nearly impossible to pay back. Legal funding exists to give financial options to those in need of monetary assistance during lengthy periods of litigation.
What is Legal Funding?
Legal funding (sometimes called litigation funding or legal finance) is a financial arrangement where a third-party group or agency provides funds to people involved in a legal dispute. The funding is provided in exchange for a portion of the potential settlement or judgment. Most funding is typically used to cover the costs associated with legal proceedings, including attorney fees, court expenses, and living expenses.
Legal Funding Key Points
The process of legal funding may seem complicated but this isn’t the case when you actually learn what legal funding is designed for. There are some key points everyone needs to know about before pursuing legal funding as an option.
Non-Recourse Funding
Legal funding is usually non-recourse, meaning that the individual only repays the funding if they win the case. If the case is lost, the funded amount does not need to be repaid.
Risk-Sharing
Legal funding companies take on the risk associated with the case. They evaluate the merits of the lawsuit and provide funding based on the likelihood of success.
Use of Funds
The funds obtained through legal funding can be used to cover various legal expenses, including legal representation, court fees, medical bills, and living expenses during the litigation process.
No Monthly Payments
Unlike traditional loans, legal funding often does not require monthly payments. Repayment is typically made from the proceeds of the settlement or judgment.
Specific Case Types
Legal funding is not limited to specific types of cases. It can be used in personal injury cases, employment disputes, commercial litigation, and other legal matters.
Approval Process
Approval for legal funding is based on the strength of the case. Funding companies assess the likelihood of success before providing financial assistance.
Confidentiality
The details of legal funding arrangements are generally confidential, and the funding company does not typically interfere with the client’s legal strategy.
Always remember to carefully review the terms and conditions of any funding agreement before you sign. You should understand the potential costs and implications before entering into any arrangement that can further affect your finances.
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.
