Litigation funding is a concept that most individuals that are involved in a lawsuit will find beneficial to them. It is most commonly used in personal injury cases, but can be used for any type of lawsuit in which the individual is seeking funds in a settlement for their hardships, whatever those may be. It has been used in a variety of cases from *** harassment to worker's compensation and many more. But, what is litigation funding and how do you know if it will benefit you? Take into consideration the number of things that it can offer to you and what will happen if you decide not to use it.
Funding A Lawsuit Through A Loan
Litigation funding is the process of securing a loan in order to pay for the cost of a lawsuit. It costs a good amount of money to see your lawsuit from start to finish. If you are suffering from medical problems and can not work, you probably need the funds to help you to pay your daily living expenses as well. These costs can be covered by your lawsuit loan, as they are often called. Believe it or not, these funds are available to you through litigation funding lenders, who are offering a wide range of options for those that need them.
Another benefit to litigation funding is the fact that you don't need to pay the funds back that you borrow to make these payments unless you actually win your case. When you do win your case, the settlement that you receive will be lessened the amount that you've borrowed to pay for your needs. But, if you lose the case or do not receive a settlement, then these funds are no longer you obligation to pay and the lender will not be able to recover them. It's completely legal and its part of the process of securing litigation funding in the first place.
Are there are other options to consider to fund the loan that you need to pay for the lawsuit that you know you should be filing? You could use a personal loan, credit cards or your own funds to pay these things. Many people don't have the funds necessary and they may not be able to secure these types of loans because of lack of employment or a back credit history due to the restrictions on their funds. Even if you do have these funds, you'll be risking your own money on these expenses, which means that if you do lose the case, you are out all that you've invested in it. That's an expensive risk for you to take.
Working with a litigation funding firm is a good option for those that know they deserve a fair share of the settlement. If you know this and you want to secure the funds that you need to make sure that your case reaches settlement, you'll want to consider litigation funding. It could mean funding a lawsuit that you deserve to win or giving up on it.
Amanda Bellview writes to expand the question base of attorneys and litigants looking for lawsuit litigation or pre settlement funding .