If you need to know about lawsuit funding, you’re in the right place. Read this guide to learn the ins and outs of how to obtain monetary support here!
Did you know that roughly forty million lawsuits are filed every year? This is part of the reason why lawsuits often take so long to complete. The courts are so backed up with cases that it can be months or even years before you even reach the settlement phase.
Sadly, lawsuits are also expensive. Lawyer fees, court costs, and possible medical bills are just some of the expenses that can bog you down while you wait. Unfortunately, many people are enforced to abandon their cases simply because they can’t afford it.
If you find yourself in this category, then you should consider lawsuit funding before calling it quits. But what exactly is lawsuit funding? In this article, we’ll teach you everything you need to know about the concept. That way you can decide whether or not it’s right for you. Let’s get started!
What is Lawsuit Funding?
As we mentioned in the intro, many people underestimate exactly how long lawsuits can take. This is a problem if they’re waiting on funds they expect to get from a settlement or out of court.
For example, how do you pay rent when you have expensive legal fees and medical bills to keep up with? Sadly, many people are forced to abandon cases that they would otherwise win simply because they can’t afford it.
That’s where lawsuit funding comes into play. These types of lenders provide you with money that you can use for whatever you need — rent, bills, groceries, anything you need.
In return, the company receives a small percentage of whatever you get from your settlement or court case winnings. That way everyone is happy. You can continue your legal battle while staying afloat on your payments. And, if you win, then the lender gets properly compensated for their investment in your case.
How Does Lawsuit Funding Work?
So, now we know what lawsuit funding is. But, exactly how does it work in practice? Well, the process starts with your application. These types of applications can be found online using the company’s website.
In the application, you’ll include information about your case. From there, the lender will contact your lawyer to request documents related to the case. Then, they will evaluate your case to see whether or not there’s a good chance of you getting your settlement.
If there, is then the lender will agree to loan you money. In exchange, they get a percentage of whatever you make from your lawsuit. The good news is that if you don’t win, then you don’t have to pay them back.
If you want to learn more about how the lawsuit funding process works, then make sure to check out this helpful resource.
What Types of Lawsuit Cases Can benefit From This Type of Funding?
Whether or not a lawsuit funding company will accept your loan first depends on whether or not they work with your type of case. Some lending companies only go with a certain type of case, like car accident injuries.
Ideally, you should find one like Legal Bay Lawsuit Funding that accepts a variety of different cases. Here are just some of the cases that they handle:
- Vehicle accidents
- Attorney or law firm
- Civil rights
- Breach of contract
- Class action
- Commercial litigation
- Construction accident
- Dog bite
- Labor law
- Legal malpractice
- Life insurance buy-outs
- Maritime jones act
- Personal injury
- Medical malpractice
- Medical receivables
- Pedestrian accidents
- Police brutality
- Pharmaceutical cases
- Premise and product liabilities
- Security fraud
- Sexual harassment
- Slip and falls
- Structured settlements
- Wrongful death
- Wrongful imprisonment
As you can see, there’s a good chance that your case will be accepted by a lawsuit funding company. Just keep in mind that whether or not your case is accepted will depend on the amount of evidence and the size of the settlement.
What Should You Look For in a Lawsuit Funding Loan Company?
Unfortunately, not all lawsuit funding companies are made equally. Indeed, some prey on people in tough circumstances by engaging in dishonest practices like fake advertising and conflicted interests.
So, how do you find one that you know you can trust? The first palace to start is your network. Your lawyer might know of some reputable companies. Or, if a family or friend was involved in a long lawsuit, then they might have some suggestions.
If not, then you can turn to an internet search. Just make sure that you closely read the reviews that come with the company. This will give you a good idea of whether or not the user experience is generally positive or not.
Ideally, your lender will also be a member of a popular trade association like the American Legal Finance Association (ALFA). Organizations like this come with a Code of Conduct that helps make sure that the business engages in better practices.
As such, you can likely trust a company that is a member. It’s best to find a lawsuit funding company that’s as upfront as possible. However, you should still make sure to ask a lot of questions about fees and interest rates. That way, everyone is on the same page about the money.
Need Lawsuit Funding? Look No Further Than Legal Bay Lawsuit Funding
We hope this article helped you learn more about lawsuit funding and whether or not it’s right for you. Lawsuits are already incredibly stressful. As such, it helps to find a good lawsuit funding business that doesn’t add any more stress to the equation.
But how can you find a good one? Simple: just go with Legal Bay Lawsuit Funding. We offer some of the fastest lawsuit funding approvals in the country.
That way, there’s no nail-biting over whether or not your get approved. So, if you’re ready to get the funds that you need, then make sure to apply today.