Paying for everyday expenses can become difficult if you have a pending case and cannot have access to money that would otherwise solve your financial problems. Many people will not pursue legal funding as an option while they are short on cash because of the widespread misinformation surrounding legal funding. However, legal funding is a great resource for attorneys and plaintiffs alike.
What Is Legal Funding?
Legal funding is financial support given to attorneys and plaintiffs who have pending cases and need money to help pay for bills and other day-to-day expenses. The amount of money received is a percentage of what the legal funding company perceives the settlement of the case will be. The most popular forms of legal funding are:
- Pre-settlement funding- This type of legal funding allows plaintiffs and attorneys to receive an advance on their pending case settlement. Plaintiffs should use the money to cover past-due bills, basic living expenses, or any other pressing financial issue that may arise. Attorneys may use the money towards case-related expenses such as travel, gathering witnesses, and any other unforeseen cost that may come up.
- Post-settlement funding- This type of legal funding is for those who have won their case but need money now and cannot wait months to years for the settlement to be paid to them. Plaintiffs can use this to cover their basic needs while waiting for their settlement to be paid to them. Attorneys may use this money to secure new clients, develop new cases, or grow their practice. Post-settlement funding will be repaid once the client receives their settlement.
- Lawsuit cash advance- A cash advance is a quick way to receive money for your immediate and pressing expenses. Settlements can take an extended amount of time to receive, and many plaintiffs have bills, medical expenses, and vehicle payments that cannot be put off. Cash advances cover the most important bills so that you won’t have to worry about falling behind or creating significant debt. Attorneys can use this money to further their firms and gain more cases and clients.
Legal funding is given depending on your case. If your legal funding company believes you may secure a high settlement, you will receive more money through legal funding. Not all cases are eligible for legal funding. A good legal funding company will tell you why your case may not qualify for funding. Additionally, you are not limited to accepting only one form of legal funding. You may accept additional legal funding as needed to cover your expenses if needed.
Who Is Legal Funding For?
Often, settlements take a long time to acquire, and money may be needed to fund immediate living expenses. Legal funding is available for plaintiffs and attorneys who need funds to cover their basic needs and keep themselves financially afloat during an extensive legal process. If you would like to know if you qualify for legal funding, you can submit your case to The Legal Funding Group.
Common Myths And Misconceptions Of Legal Funding
There has been a lot of misinformation surrounding the topic of legal funding. Many people will discourage others from accepting legal funding because they believe it benefits the companies giving them money and not the plaintiff receiving it. Due to these misconceptions, some people who could benefit from legal funding never apply. A few incorrect statements that deter people from accepting legal funding are:
- Legal funding is a loan- Legal funding is given out on the basis that you will win your case and repay the funding. If you do not win your case, you will never have to repay the money you received through legal funding.
- Legal funding exploits plaintiffs and attorneys- Legal funding is there to support plaintiffs and attorneys while they may be short on money to afford their necessary expenses. It does not contribute to personal debt and is, instead, a safety net for many people.
- Legal funding has to be paid back- Legal funding is non-recourse, meaning that if you lose your case, the money that your legal funding company provided to you will not have to be paid back at all.
- Legal funding is unregulated- When legal funding was first created and implemented, it did go vastly unregulated; however, as this industry has grown, it has been subjected to strict rules and regulations.
- Legal funding will affect your case- Some people believe that legal funding companies pressure attorneys to settle their clients’ cases so that they may receive their legal funding back. This would cause the client to receive a less than satisfactory settlement. Legal funding groups do not take any part in your case and do not place themselves in the middle of it.
- Legal funding should only be given to plaintiffs by their attorneys- While it is true that you can receive some financing from your attorney, it is rare and often insufficient to cover your basic needs. regularly
- Law firms lose profit due to applying for legal funding- Legal funding provides attorneys with the money they need to cover their basic expenses, so they do not have to accept a bad settlement offer on behalf of their clients. With the help and confidence that legal funding gives them, they can fight for larger settlement amounts for their clients and give them the money they deserve.
Although every legal funding company is different, the vast majority of them are not scams. If you are curious about the legitimacy of a legal funding company, thoroughly research it to make sure that you will be assisted by professionals who have your best interests at heart.
Contact The Legal Funding Group
If you are struggling financially due to your case and are in need of legal funding, contact The Legal Funding Group. You can fill out an application on our website, and our experts will take the time to look into your case and provide you with the funding you need to ease your stress during your legal process.