While legal funding is seen as a godsend by many people in life-changing situations, the funding and payment aspect confuses just as many others. Common questions people ask include “Where does the money come from,” “Who gets the money,” and, most importantly, “How is the money paid back?
Legal funding groups typically expect to get paid after a judgment or settlement is reached in the underlying legal case. The repayment is contingent on the successful resolution of the case, and the timing may vary depending on the terms outlined in the legal funding agreement.
Let’s take a look at how and when the majority of legal funding groups expect to be repaid.
At Settlement or Judgment
In many cases, legal funding groups are repaid directly from the proceeds of the settlement or judgment. Once the case is successfully resolved, the plaintiff’s attorney, in coordination with the legal funding provider, deducts the agreed-upon funding amount along with any fees from the settlement or judgment amount.
Upon Disbursement of Funds
The legal funding provider may expect repayment immediately upon the disbursement of funds from the settlement or judgment. This ensures that the legal funding amount, along with any accrued fees or interest, is promptly repaid.
Through An Attorney Trust Account
The legal funding group may work with the plaintiff’s attorney to facilitate repayment through the attorney’s trust account. The attorney ensures that the agreed-upon funding amount is paid to the legal funding provider before disbursing the remaining funds to the plaintiff.
Repayment Plans
Some legal funding agreements may involve structured repayment plans. In such cases, the repayment may be scheduled over some time, and specific terms are outlined in the agreement. This could involve periodic payments or milestones tied to the case’s progress.
Contingency-Based Repayment
Legal funding arrangements are often structured on a contingency basis, meaning repayment is contingent on the success of the case. If the case is not successful, the legal funding provider may not be entitled to repayment.
Always Be Aware of Terms
It’s crucial for anyone seeking legal funding to carefully review the terms and conditions outlined in the legal funding agreement. The agreement will specify when and how the repayment will occur, the total repayment amount, any fees or interest charged, and other relevant details. Clear communication between the plaintiff, their attorney, and the legal funding provider is essential to ensure a smooth repayment process and to avoid any misunderstandings.
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.
