Legal proceedings can be extremely costly. Whether you are filing suit against a Fortune 500 corporation or an individual, legal bills often arrive before the proceedings finish. Many individuals find themselves requiring financing.
Attorneys and plaintiffs both have costs which need to be paid during and after legal action. Sometimes these costs are able to be absorbed by the attorney. However, in many cases the attorney may not have the necessary funding to continue. They may need to bring in another law firm or seek litigation financing to assist them in their quest for a successful judgment. One of the most common reasons for needing this type of assistance is for medical bills or daily living expenses. This type of financing is typically sought by the lawyer for their client.
The great thing about financing for litigation is that there is often no demand for repayment if the case is not won or settled. The litigation financing company must only be repaid should the lawsuit be resolved successfully. A loss will result in no repayment being necessary. Financing companies recognize this as a possible problem and will often lower the maximum amount that they are willing to hand over to a client. For example, a client who has a good chance at winning a $5 million case will not be given $5 million. They may be given several hundred thousand dollars in order to tide them through their hard times. The financing company will then tack on an additional set fee or percentage of the amount loaned.
This fee is applied through the use of a lien on the judgment. While there is no judgment at the time the loan is made, it does not prevent the lien from being created against a future judgment. It is important to note that you should consult with your lawyer before deciding to enter into a finance agreement. Your lawyer may be required to co-sign the agreement as well as be reviewed as part of the financing offer. Litigation finance companies will often require that you fill out a number of forms as well as speak to them over the phone.
Another great reason to choose this type of financing is that interest rates on these types of loans are much lower than credit cards. Many individuals choose to use their credit cards to deal with a financial crisis.
This could not be a worse idea! Most financing loans are determined based upon the merits of the case, length of time the case has been open as well as insurance coverage. Other factors may be used to determine which type and amount of financing will be the best for your specific situation.Litigation financing is often necessary for legal cases that stretch out over a period of time. This financing can ensure that you receive the funds that you need to pay for your day to day expenses. The funding does not charge nearly as much as other loan options. Plaintiffs with excellent cases and good attorneys may receive hundreds of thousands of dollars or more with financing!
Leave Litigation Financing for Mesothelioma Lawsuit Home
0 comments:
Post a Comment