Before the 1990s, you had to borrow from family, friends and/or the bank in order to ease your financial burden during a pending litigation. After which, whether your settlement succeeds or not, the amount borrowed had to be repaid with interest (for bank loans).
Fortunately, there are now many lawsuit financing companies that would provide you with a lawsuit cash advance.
What Is Lawsuit Financing?
Lawsuit financing (aka lawsuit advance, lawsuit funding and pre-settlement funding) is a non-recourse ‘loan’ made against a pending settlement of a lawsuit. Lawsuit financing is not an actual loan as it is not subject to the same laws governing a bank loan. It is more accurate to think of lawsuit financing as a cash advance made on an expected legal compensation for damages or negligence.
The plaintiff need repay the lawsuit financing company only if the litigation is won or settled out of court. This is due to the nature of lawsuit financing being non-recourse; the lawsuit financing company has recourse to the settlement amount of the lawsuit and only that.
Should your litigation be lost, these lawsuit financing companies would forfeit the repayment of the cash advance. It is important to note that lawsuit financing does not restrict the choices of your attorney or you. If you are forced to abandon the case, and lose the settlement, there is no need to repay the lawsuit cash advance.
It therefore makes sense to reduce your worries of paying legal expenses by getting a lawsuit cash advance.
Lawsuit Financing Sponsors
Common Lawsuit Where Advances Are Given
These are the common types of lawsuits where advances are applied for:
- Personal Injury
- Worker’s Compensation
- Accident Claims
- Medical Malpractice
- Products Liability
- Wrongful Death
The listed lawsuits and many others last for many months or even years.
More Information On Lawsuit Financing
Lawsuit Financing Info Guide