By Brian Murray JD
It’s important to understand that a lawsuit cash advance loan is not a loan and the central feature of litigation funding is that it is non recourse. That is to say, the advance of monies provided by a third party funder are not paid back unless the plaintiff prevails in the pledged case portfolio. Law firms typically provide a portfolio of cases and in the case of plaintiff funding, a single case is provided for collateral.
Loans from bank carry interest that is fixed or variable and have an obligation to repay unlike non recourse litigation financing. An easy way to think about the relationship is to understand that when your lawyer who takes your case on contingency only gets paid if you win your case. The same goes with litigation financiers.
By Melissa Ibanez JD LLM
Not all litigation funders are created equal and they finance different types of cases. There are two main types of legal funding: commercial litigation funding and personal injury case advance funding. Commercial litigation funders fund legal costs in large commercial disputes involving business transactions. In addition to funding legal fees, litigation funders can cover case expenses, and in some instance, business operations.
On the other hand, pre settlement funding legal providers focus on personal injury cases and providing advances to consumer claims for motor vehicle accidents, product liability cases, and other consumer cases. They are also structured as advances and are for smaller sums ranging from $500 to $100,000 to cover personal expenses such as rent and food while a plaintiff is unable to work as a result of their injuries.
So when seeking legal funding, it’s important for plaintiffs to know what type of legal funder they are seeking based on their case type and needs.
By Miguel Heras JD at Fuerza Immigration Law in Las Vegas
Legal funding is important for our personal injury clients. Making ends meet after a personal injury case can be very difficult. Many of our immigration lawyers know us as abogados de inmigracion en Las Vegas but we also handle a variety of consumer tort claims. And for those clients litigation funding is essential. We work with a handful of companies that charge fairly low interest fees compared to the majority of tort funders.
We recommend that our clients determine who much funding they need and use the funding as a last resort rather than a first option. Speaking with your attorney about your budget and asking for them to look over the funding contract is important when analyzing the fees and repayment terms and making sure you understand them. Finding a reputable litigation finance company ensures that your funding process will be smooth and help you take care of your immediate expenses.