Legal funding, mostly known as litigation Financing can be known in some areas as litigation financing. It is a mechanism through which law firms or even individuals finance their legal costs by the help of a third party company. It is likely to be used by plaintiffs and its advantage to the funded party is that it doesn’t have to pay back the amount if they lose the case. The funding firm gets a percentage of the shares only if the court judgement is won but the funding has to occur if it’s worth the risk.
Listed below are steps which are Followed when trying to get lawsuit financing.
Decide on the type of financing you require.
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There are two kinds of funding in Legal financing and you need to know which one you’re settling for its consequences. It can either be direct plaintiff financing whereby you’re given the cash to run the day to day legal expenses or legal cost financing whereby in settling the lawsuit costs, a check is sent to your attorney from time to time.
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Involve your lawyer.
Your lawyer is a major determinant in your process of acquiring legal financing because he needs to answer a few questions about the case and filling of some paperwork hence the need to let him know the facts and your intention to acquire funding.
Look out for litigation funding companies.
Find out about lawsuit financing companies and the various Types of Injuries for which they offer financing and their area of coverage.
Research on the companies you’ve chosen.
When you have finally decided on the company to source funds from, research On the company to learn whether it is qualified and pay attention on the complains. You could also visit their offices to find out its physical location.
Analyzing the potency of your case.
Consult your attorney to find out if your case is strong enough to obtain Funding and how essential it is.
Considering the proceeds from winning the court judgement that Will go in the payment of the attorney and the legal financing company incorporating the interest, consider if it is worth it. If there are other more economical options like sourcing your capital from household and Friends then settle for that.
Enquire all requirements and what it implies to get the funds.
This can be done best by asking questions from the company itself like the percentage they are willing to fund, the interest rate they will charge you on the funds they give you and even any hidden fees. Find out about any extra services they offer and should they attract additional charges.
One can now confidently use for the authorized financing providing the Necessary information through the right channels.
Read the contact thoroughly and understand before signing. Should you agree With everything inside, you can the append your signature.
Depending On the station of getting money, check on whether you’ve received the amount.