Even though you do not hear about it often, going through a lengthy lawsuit as a plaintiff can be a long and arduous process, and this long process can cost a lot of money. Lawsuit funding for plaintiffs in legal cases can be a feasible idea. Here is what you should know.
Why would a plaintiff need lawsuit funding?
Lawsuit funding can be necessary for a few reasons. One of the primary reasons a plaintiff may seek funding is to help them cover the costs of legal fees associated with a trial. For example, a plaintiff may need money to pay their attorney so they can maintain proper representation in their case. Some plaintiffs seek funding to help cover other costs as well, however. For example, a plaintiff may need funding to pay for:
What lenders offer lawsuit funding?
Many lenders offer funding for lawsuits, such as banks, finance companies, and even private lending groups that specialize in this unique form of funding. Most of these loans operate with the same requirements that other loans do. For example, you may have to have a good credit rating and a steady form of employment. You may also have to provide some form of tangible collateral, such as a piece of real estate you own.
What is the difference between a lawsuit funding loan and a lawsuit funding advance?
Lawsuit advances are a totally different thing than a lawsuit funding loan for a plaintiff. A lawsuit advance is an advance of money given to the plaintiff when it is expected the case will have a good monetary outcome. For example, if a plaintiff is suing a business due to a faulty product that caused them an injury, they may be able to obtain an advance from the proposed settlement. A loan has to be paid back but an advance is coming from money that is anticipated to belong to the plaintiff when the case concludes.
Are there other funding options besides loans during a lawsuit?
In some cases, plaintiffs can gather funding in other ways beyond obtaining a loan. For example, high-profile civil cases sometimes make it fairly easy for plaintiffs to gather funding from supporters who want to help.
For more information, contact a company like Lance Capital Group, LLC today.
Share30 December 2019
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