The legal financing industry is growing and for good reason. Traditionally, plaintiffs have had to face costly litigation on their own. The availability of new financial instruments specific to civil law has given plaintiffs the valuable resources they need to pursue litigation to its conclusion with tools like litigation financing.
Financial assistance during a lawsuit, known as “non-recourse funding” was first introduced in the 1990s. This legal funding has grown out of a unique combination of facets from both the financial sector and the legal sector. Since its introduction, litigation funding has grown into a billion dollar industry that provides lawsuit financing to individuals and firms alike.
It is important to note that legal financing is not a loan, but rather a financial service and you only have to repay if you settle or win your case.
Lawsuit funding has been an important asset both to plaintiffs and the rest of the legal community. The New York Bar Association has described legal financing as “a valuable means for paying the costs of pursuing legal claims and sustaining basic living expenses until a settlement or judgment is obtained.”
The application process is quick and easy and does not usually require a credit check.
According to TRAC Reports, plaintiffs file over 20,000 lawsuits each month in federal courts alone. In addition to filing fees, most litigants have to pay for expensive attorneys, researchers, investigators, and court reporters. A lawsuit can take years to settle or reach a verdict.
Pursuing a legal claim takes a serious financial and personal toll, especially when corporate defendants have teams of lawyers who will delay litigation as a defense tactic. Pre-settlement funding is an essential resource for individual plaintiffs who stand up when they have suffered a legal tort.
During a lawsuit, you may miss work either because of the injury that gave rise to the suit or because of a need to appear in court or meet with lawyers. Defendants demand time-consuming depositions that require your extended presence. Without a paycheck, a mountain of debt accumulates quickly.
When lawyers need to hire another paralegal for your case and the bills are overflowing the mailbox, litigation funding is there. Don’t drop your suit or give up rights. Depend on lawsuit funding to fill the gaps and allow you to pursue your claim.
When plaintiffs must abandon lawsuits because of a lack of financial resources, courts, clerks, and attorneys are left with procedural gaps to fill. Additionally, risks of unpaid costs or counter-claims by defendants remain.
Relying on pre-settlement funding to support you and your family during the long legal process ensures the smooth operation of the legal system and protects your rights.