Legal funding, also known as lawsuit funding or pre-settlement funding, is a valuable resource for plaintiffs involved in ongoing legal cases who need financial support before their case reaches a settlement or judgment. Whether you’re dealing with personal injury, employment disputes, or any other type of legal claim, legal funding can provide the cash you need to cover living expenses, medical bills, and legal fees while you wait for your case to be resolved.
However, not everyone qualifies for legal funding, and understanding the eligibility criteria can help you determine if this financial option is right for you. Here’s a beginner’s guide to who qualifies for legal funding.
The Type of Legal Case Matters
The first and most important factor in qualifying for legal funding is the type of case you are involved in. Legal funding is generally available for plaintiffs in personal injury cases, including car accidents, slip-and-fall incidents, and medical malpractice. Employment-related cases, such as wrongful termination, discrimination, or wage disputes, may also be eligible for funding. Other types of cases that may qualify for legal funding include workers’ compensation claims, product liability cases, and class action lawsuits.
However, not all types of legal cases are eligible for funding. For instance, cases involving family law issues, criminal defense, or divorce are typically not eligible for pre-settlement funding, as they don’t involve financial compensation or a direct settlement in the same way as personal injury or employment claims.
The Strength of Your Legal Case
Lawsuit funding providers evaluate the strength of your case to determine whether you qualify for funding. They assess the likelihood of your case reaching a successful resolution and the amount of compensation you may receive. The key factor here is whether your attorney believes that you have a strong chance of winning or settling your case.
Funding providers typically request detailed information from your attorney to assess the strength of your case, including case details, medical records (in personal injury cases), and any other evidence that may be relevant. If your case is expected to result in a favorable outcome, you’re more likely to qualify for legal funding.
Your Financial Situation Does Not Impact Eligibility
Unlike traditional loans, where your credit score, income, and financial history are important factors in determining eligibility, legal funding does not depend on your personal financial situation. This means that even if you have bad credit or limited financial resources, you may still qualify for legal funding, as long as your case is strong and your attorney is involved.
This aspect makes legal funding an appealing option for plaintiffs who may not have access to other forms of financing but need immediate financial assistance while awaiting the resolution of their case. It provides a safety net for those who may not have the means to cover living expenses or medical bills during a long legal process.
Your Case Must Be Expected to Settle or Reach a Judgment
For legal funding to be viable, your case must have a clear path to settlement or a judgment. Funding companies are essentially advancing you a portion of your expected settlement or judgment amount, so they need to be confident that you will ultimately receive compensation from your lawsuit. If your case is in the early stages or lacks a clear path to a financial resolution, you may not qualify for legal funding.
Additionally, the funding amount is typically based on the expected outcome of your case. The higher the potential settlement or judgment, the more funding you may be eligible to receive. Keep in mind that the funding is usually repaid from the settlement or judgment, with the funding provider taking a percentage of the total recovery.
No Repayment Until Your Case Settles or Is Won
One of the major advantages of legal funding is that it is non-recourse, meaning you are not required to repay the funding if you lose your case. This makes it a low-risk option for plaintiffs, as repayment is contingent upon a successful resolution of the lawsuit. If you win or settle your case, you repay the funding provider, typically with a fee that is based on the length of time it took for your case to resolve.
If you lose your case, you owe nothing, which is a significant difference from traditional loans, where repayment is required regardless of the outcome.
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.
