Populat Categories of Litigate Financing
Litigate finance refers to the prior cash payment given to plaintiffs who have filed a case but do not have enough money to settle the case. Litigation finance companies invest in the lawsuit itself as opposed to the advancing money to the plaintiff in the form of a loan. This finance is not based on a plaintiff’s previous credit or bankruptcy status.
The interest rates charged by different litigation companies for the financial assistance are different. It is true to say that these litigation finance companies assume a lot of risk due to their investment in the lawsuit as opposed to investing in the plaintiff. There are some lawsuits that are not resolved successfully in spite of how strong they are. Due to the risks involved, these litigation finance companies charge high-interest rates on the cases that are successful so that they can make up for the cases that have been unsuccessful. Some funding companies prefer to use multipliers overcharging interest rates for their financial assistance.
The main purpose of the litigation finance companies is to provide the plaintiff with any financial assistance they might need to fight a case. If you have a lawsuit, and you do not have the financial resources to settle the case, you are qualified for the funding. As long as a person is a lawyer who is involved in your case, they are not allowed to provide the clients with the means to get the case settled. In spite of that, the advocate has a right to inform you about the best financing option that you can depend on. The litigation financing options available are several.
The first type is the plaintiff’s funding. This means that the plaintiff does not have to repay the loan if the case is lost. This litigation finance is like a debt and attracts high-interest rates. The funding company only takes away a certain percentage of the amount paid after the case has been resolved.
Another financial option is the post-settlement financing. In case you are not sure of the time you will receive the settlement, this is the best financial option you can choose.. When you get the post-settlement financing, you are expected to pay back the interest rates or a portion of the settlement in case the case is successful.
Most of the injury victims are the ones who are funded by the litigation financing companies. Attorney litigation financing is also another financial choice. You can either pay or not pay after the case has been resolved successfully.
If you are a plaintiff, you can consider using appellate financing to get the best lawyer for your case. It also provides funds to plaintiffs so that they can satisfy their monetary needs and have to pay if the case is successful.
You should know all the facts that concern litigation financing before you use it. As a plaintiff, it is always a good idea to choose a funding company with a good image.