Legal Funding

It is a fundamental principle of justice that everyone and anyone should, and can have, access to legal advice and representation, despite their financial capability to pay. Honestly, seeking assistance from the advocates can be very costly, thus the need for legal funding. This is the financial assistance that individuals get to help them in pursuing a lawsuit. There are several financing options that people in this situation can choose with the intent of winning the case.

Funding options
When you consult an attorney, or any other legal advisor for the first time, there is usually no charge. This is called the free first interview which outlines your options, chances of success in the case and the exact cost you will incur if the said advisor represents you. Some of the options include;

Legal aid: This is the financial assistance that the government usually awards individuals for the sake of seeking legal help and representation. The amount awarded in this case depends on the candidate’s financial situation, type of case and many other factors. You can apply for them and the legal representative can direct you on the same.

Legal insurance cover: You will be asked if you have an insurance policy that covers you for such situations. If so, the insurer will be contacted and you will get free access to the legal advice and representation in court. Some of the cases that the insurance may cover include personal injury, unfair dismissal and unemployment as well as loss or damage of property or life due to someone else’s negligence, among others. It is up to you to find out which of these cases you are covered for and how much the financial cover is. Remember that some insurers do not cater for the entire costs, so be knowledgeable of such before filing a lawsuit.

Lawsuit financing company: Besides the government and the insurance cover, the most profound financing option that a plaintiff has is legal funding from lawsuit financing companies. These individual companies do offer pre-lawsuit settlement cash advances to help the plaintiff pay for rent, bills, automobile payments and the legal representation.

Benefits of legal funding
There are a number of advantages of seeking legal funding, especially from the private lawsuit companies. One fact for sure is that you can only apply for the financing during the lawsuit and not close to its settlement, that’s why it is usually called a pre-settlement cash advance. Here are some of the benefits.

Legal funding provides a fundamental financial solution to both the plaintiff and the attorney. Since you are awarded the loan during the case, it reduces any financial pressures that the lawsuit may cause you. Legal funding is also a non-recourse financial solution to the plaintiff. Remember that this loan is normally given out on the basis of a ‘no win no pay back’ contract. Therefore, the plaintiff can only repay the amount if he or she wins the case. Otherwise, there is nothing the company can ask for.

Legal funding has no risk at all. Anybody and everybody can apply for this loan provided he or she has a case in court. You do not have to pay any pre-approval fees, no upfront charges or monthly fees. Also, you do not go through a credit check.

With legal funding, the attorney can concentrate fully on winning the case at hand. As long as he or she is assured of payment at the end of the case, the advocate will definitely put his or her foot forward when representing the plaintiff. With no financial stress, the plaintiff can be assured of protection and that the attorney will only go for a fair settlement.