A Loan at Last! How to Get Legal Funding
In most situations where money is a major concern, this means that the plaintiff will likely accept a settlement which may be many times lower than their case value.
Accepting a settlement too early due to financial restraints creates an “opportunity cost”.
Mitigating Opportunity Cost in a Legal Proceeding
In terms of legal proceedings, an opportunity cost is the loss of potential gain from settling out of court.
Legal disbursement funding helps to drastically reduce the cost of opportunity due to a lack of finances, by providing the plaintiff with money, and a guarantee.
Pursue Claims Without Compromising Settlement Value
A court case can take years to run its course, and your case may be tied to injury, or unemployment which can severely impede your ability to pay your bills or provide for your family.
If the cost of being broke is more damaging than the cost of legal disbursement funding, then this route may be your best option.
The companies that offer this service will review your case, and if a favourable outcome is likely they’ll finance you for part, or all of your settlement. Interest free, and often with no upfront fee. If you lose, they absorb the loss.
Sound too good to be true?
Well it isn’t, you definitely pay to use this service.
First, realize that it isn’t a “loan” in a traditional sense. It’s an investment on the part of the legal funder, sort of like stock. They are banking on your win, and a court case isn’t something a bank would take into consideration for a loan. So it’s not a loan, in official terms.
The cost is usually a % of your settlement, and spread out over all of the people being funded by the company. Their margins allow them to assume the risk on your behalf, so even if you lose, you win, and what the company loses won’t break the bank.
When Should I Consider Legal Funding?
When it comes to your income, timing is everything.
Are you injured and unable to work to pay your bills? Is your career tied up in your legal debacle, leaving you unemployed, or unemployable? Are the expenses of going to court strangling you?
Any reason to tempt you to settle prematurely when you’ve got a winning case is not a sound one, and you must ask yourself if the amount of the settlement is less than a proper pay-out, minus legal funding fees.
You’d be quite surprised how much money your case is worth, so be sure to consult your lawyer about your decision to move forward with legal funding.
Allow yourself the flexibility to manage the financial, emotional, and physical pressures of your litigation without being financially vulnerable, while giving your lawyer enough time to do their job –and ensure you get the best results of your litigation.
