Legal financing, mostly known as litigation Financing can be known in some areas as lawsuit 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 receives a proportion of the shares only if the court verdict is won but the funding has to occur if it’s worth the risk.
Listed below are measures which are Followed when seeking to acquire litigation financing.
Decide on the type of funding you need.
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There are two kinds of funding in legal financing and you have to know which one you’re settling for and its implications. It can be direct plaintiff financing in which you’re given the money to run the day to day legal expenses or legal cost financing at which in settling the lawsuit expenses, a check is delivered to your lawyer from time to time.
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Involve your lawyer.
Your attorney is a major determinant on your process of obtaining legal Financing since he wants to Answer several questions regarding the situation and filling of some paperwork hence The should let him Understand the facts along with your intention to get funding.
Be Aware of litigation funding companies.
Find out about litigation funding companies and the various kinds of injuries for which they offer funding 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 find out whether it is eligible 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 lawyer to find out if your case is strong enough to obtain financing and how necessary 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 cheaper options like sourcing your funds from family and friends then settle for that.
Enquire all demands and what It implies to get the money.
This can be done best by asking questions in the firm itself like The percent they are willing to fund, the interest rate they will charge you around the funds they give you as well as any hidden fees. Find out about any extra services they offer and should they attract additional charges.
One can now confidently apply 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 receiving money, check out if you have gotten the amount.