How Legal Funding Helps Plaintiffs Secure Justice
When individuals file lawsuits, they often face significant financial strain. Legal battles can take months or even years to resolve, leaving plaintiffs struggling to cover medical bills, living expenses, and other financial obligations. This is particularly true if plaintiffs are unable to work, sometimes due to accident injuries. This is where legal funding helps plaintiffs by providing a financial lifeline during the litigation process. In this post, we examine how legal funding helps plaintiffs endure the legal process and secure justice.
What Is Legal Funding?
Legal funding, also known as lawsuit funding or pre-settlement funding, is a non-recourse cash advance provided to plaintiffs awaiting a settlement or court judgment. Unlike traditional loans, legal funding does not require monthly payments, and plaintiffs only repay the advance if they win their case.
Although sometimes referred to as lawsuit loans, the differences between personal loans and lawsuit loans are many. First, traditional lending implies repayment at some point in the future. Legal funding however, is structured as a sale of future property rights in a lawsuit’s recovery. If the lawsuit is not successful, what is purchased (part of the recovery) is nothing. Thus, lawsuit loans are only repaid if a case is successful. A lawsuit “lender” cannot pursue a plaintiff personally for repayment under the terms of the agreement and under normal circumstances.
This unique nature provides a liquid market for plaintiffs to sell a portion of their recovery prior to receiving it. And in certain circumstances, makes legal funding a viable financial tool to alleviate immediate financial concerns.
Key Ways Legal Funding Helps Plaintiffs
Legal funding helps plaintiffs in various ways. These can include:
Covering Essential Living Expenses
Many plaintiffs are unable to work due to injuries or other case-related circumstances. Legal funding helps plaintiffs by covering rent, mortgage payments, utilities, groceries, and other necessities while they wait for a settlement.
Providing Relief from Medical Bills
Personal injury plaintiffs often face mounting medical costs. Legal funding helps plaintiffs afford necessary treatments, surgeries, and therapy without worrying about immediate out-of-pocket expenses.
Levels the Playing Field Against Insurers
Large corporations and insurance companies have the financial resources to delay settlements, hoping plaintiffs will accept low-ball settlement offers out of desperation. Legal funding helps plaintiffs hold out for a fair settlement by giving them the financial stability to continue their legal fight. With this cushion, their attorneys can do their jobs and secure just compensation.
Avoids Traditional Loan Requirements
Traditional loans often require income and/or asset verification and employment. Many plaintiffs simply cannot qualify for traditional lending solutions. Without legal funding, some plaintiffs resort to unsecured debt transactions such as high-interest credit cards or personal loans to stay afloat. Legal funding helps plaintiffs avoid these costly alternatives, as repayment is only required if they win their case.
Legal Funding Helps Plaintiffs by Reducing Financial Stress
Lawsuits are stressful, especially when financial hardship is involved. They also take time as legal system delays are inherent in the process. This is especially true when lawsuits involve severe injuries which make cases more complex. Legal funding helps plaintiffs focus on their recovery and case without constantly worrying about bills and expenses.
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Who Qualifies for Legal Funding?
Legal funding is available to plaintiffs involved in various types of cases, including:
- Personal injury lawsuits
- Wrongful death claims
- Employment disputes
- Medical malpractice cases
- Product liability lawsuits
In fact, most plaintiffs who are represented by attorneys on a contingency fee basis (they earn a legal fee based upon a successful outcome) can apply for lawsuit loans. Eligibility is primarily based on the strength of the case, not the plaintiff’s credit score or income. This is because funders invest on the case’s outcome, not the plaintiff’s ability to repay.
How to Apply for Legal Funding
The lawsuit loan process is simple:
- Submit an application – Plaintiffs provide basic case details to a live lawsuit loan representative who screens the applicant and takes down basic information.
- The Paper Chase – Once pre-qualified, documents are requested from the plaintiff’s counsel.
- Attorney cooperation – Legal funding helps plaintiffs the best when their attorneys participate in the process. In fact, attorney cooperation in lawsuit funding is required. The funding company reviews case documents with the plaintiff’s lawyer.
- Approval and funding – When approved, a contract is drafted and sent to the applicant. Upon receipt, funds are sent quickly—often within 24-48 hours.
Legal Funding Helps Plaintiffs When Needed
Legal funding helps plaintiffs by providing crucial financial support during litigation. Whether covering daily expenses, medical bills, or enabling plaintiffs to reject low-ball settlement offers, lawsuit funding ensures justice isn’t compromised by financial hardship. If you’re involved in a lawsuit and need financial assistance, exploring legal funding options can be a game-changer in your pursuit of fair compensation.
Why Choose Fair Rate Funding
You obviously have a choice in who you use for legal funding. We offer:
- Simple and Easy Process – Approval only on the strength of your case.
- Risk – Free Proposition – Only repay if you win your case.
- Rapid Approval and Funding – Approvals often within 24 hrs.
- Up Front Pricing – Absolutely no hidden fees.
Give us a call and learn about your options. We are here to help and are at your service.
