You’ve probably never noticed that legal funding is a growing and very popular funding option for plaintiffs. Most are struggling to survive financially as they await a final resolution in their case. This type of emergency financial assistance is necessary and appropriate for plaintiffs whose cases drag on for an extended period of time. Many of these cases can go on for months, and even years before a settlement is reached. During this extended amount of time that a case is pending the plaintiff must pay mounting legal fees and also have enough money left to live on. This can add huge pressure on a plaintiff and their families. Some face losing their home and their ability to work. If the plaintiff is unable to work, has a smaller income, or has higher care expenses it might become impossible to exist while waiting for the lawsuit to end.
What is the Legal Finance Cost?
Here’s the bottom line. This is no risk funding, but as with any borrowed money, there are fees involved with legal finance funding. Since there is some risk involved in providing the funds there is cost associated with legal finance funding. However, the cost is usually worth it to plaintiffs who are struggling to keep their case alive, while keeping a healthy quality of life. Legal finance companies review your case in depth and will only offer funding if the case has a good chance of winning in court. This is done to minimize the company’s risk in making the loan.
It is important for plaintiffs to find the right settlement loan company before entering into an agreement for a cash advance with legal finance funding. Companies like Alliance Claim Funding are professional and respected in the industry.
Why Can’t my Lawyer Offer Funding?
This is a typical question many plaintiffs ask regarding legal finance funding. Lawyers are prevented from providing funds to their clients due to what they consider a conflict of interest. State bar associations do not allow such funding as it is believed when a lawyer becomes a funder to one of their clients; a conflict of interest is present that may change the relationship between an attorney and their client. Since legally this relationship is meant to be preserved at all costs, no funding can come from a plaintiff’s legal counsel.
Typically the lawyer is involved with the legal finance funding company to communicate information about the case as the company reviews the merits of the case. This must be done to determine if the plaintiff can qualify for funding. Also, many lawyers can suggest legal finance companies to their clients.
To learn how legal finance can help you, give us a call, toll free, at 888-732-3389 or complete the contact form on the left. If you’re ready to get started, you can complete the application form. It’s never too late to get the financial help you need!