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Lawsuit Funding

Legal Article Guide
By: Jennifer Bailey

Consider a situation when you find yourself a victim to an accident on a road, which took place because through no fault of yours. Alternatively, you may find yourself at the receiving end of racial discrimination or harassment at the workplace, or even a victim of medical malpractice. You can claim compensation for your personal injury by taking your case to court. The question is how to afford this.

In this case, you have two options. One is to take out a traditional loan. If you take out a traditional loan, you will have to repay it according to the terms and conditions associated with the loan. This will, in most cases, involve a monthly payment amount.

The other option is to take a non-recourse loan from a Lawsuit Funding company. Simply stated, these funding companies will study your case, contact your lawyer, gain insights into the merit of the case and the amount of compensation expected and, on the basis of this, they will offer you an advance payment. Since this is a non-recourse loan, you would be expected to pay it back only if you win the case. Alternatively, if the settlement amount is less than anticipated, the financing company will not make a claim, which is more than the verdict’s settlement amount.

Considering the amount of risk involved, the fees involved with non-recourse loans are considerably high. You have the choice of paying either a flat fee or a recurring fee.

In case of a flat fee, the plaintiff and the funding company agree in advance the amount the company would get from the verdict or settlement. Recurring fee, on the other hand, involves the charging of a recurring fee on monthly basis, based upon the advance sanctioned by the company. The fee settled upon varies from company to company.

Lawsuit Funding provides detailed information about lawsuit funding, lawsuit cash advances, lawsuit funding companies, lawsuit loan services and more. Lawsuit Funding is the sister site of Litigation Financing Companies.


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