How to Get Litigation Financing - Litigation Funding in 3 Easy Steps?

By Paul Sherman -

Risk - Free, Non-Recourse Litigation Loan

Litigation Funding: Providing cash advances to plaintiffs and attorneys even before their lawsuit cases are settled. It is a contingent transaction in which litigation financing is advanced based solely on the merits of a pending lawsuit. Litigation funding is repaid only upon successful verdict or settlement of the lawsuit. If the plaintiff or attorney loses the lawsuit case, the litigation loan is never paid back to the litigation financing company.

LITIGATION - A case, controversy, or lawsuit. A contest authorized by law, in a court of justice, for the purpose of enforcing a right. Participants (plaintiffs and defendants) in lawsuits are called litigants.

For plaintiffs the litigation process is long, stressful and tiring. The legal system is uncharted territory for most of them. Many times litigation process is disruptive and painful life experience for them as well for their families. Even when they win their lawsuits, plaintiffs may not receive payment for months or even years.

Litigation: A machine which you go into as a pig and come out of as a sausage - Ambrose Bierce.

Litigation process, as every body knows, is mostly very expensive. Since the average plaintiff in a tort case does not have the money or the staying power to enter the arena against a giant opponent, the defendant, at this crucial time the litigation funding is a major help.

Litigation financing or litigation funding enables plaintiffs involved in lawsuits to receive cash money months or years before their cases have settled, some times even before the complaint is filed.

What are the other available alternatives?

1. You can use your own credit cards: This is an expensive alternative and you still have to pay your monthly credit card bills. But litigation loan is a non-recourse, which you pay back to litigation financing company only if you win or settle the case.

2. You can borrow money from friends or family:  This also is high risk, especially if, you lose the lawsuit and you may not have the money to pay them back. But that is not with litigation funding as it is a non-recourse litigation loan.

3. You can take out a bank loan: Banks do not generally make loans against future lawsuit settlements, but may offer a personal line of credit to individuals, based on their financial situations and credit worthiness.

Even if you do qualify, you have to start paying back a bank loan right away and continue making payments until it is paid off, even if you lose your case and receive no money.  But this does not apply to your non-recourse litigation funding or litigation loan.

4. You can obtain a home equity loan or second mortgage: This option is extremely risky. If for some reason you do not win your litigation case, you could lose your home. But that is not with the litigation funding or litigation loan.

Litigation Financing - Litigation Funding is safe and fast:

You can secure litigation financing or litigation funding in three easy and quick steps:

1st. Step - Submit the Application: When you apply for litigation financing there is no application fee. A good litigation funding company should not charge any upfront fee or any application fee, processing fee or any monthly fee.

2nd. Step – Your attorney faxes the required documents to litigation funding company. Approval is always fast for litigation financing. Mostly in 24 to 48 hours (some times in 4-6 hours).

3rd Step - If approved for litigation financing, funds are wired into your bank account, the same day. Of course, you can take a bank check also.

Once you get a litigation financing or litigation funding, you do not pay back until you win or settle the case.

What your attorney needs, in order to get you the best settlement or fairest trial, is time. Just as the defendants can buy time, so can you. Litigation funding or litigation financing, allow you to get relief from financial pressure so you do not have to settle your case simply because you need whatever money you can get now.

About the Author:

Paul Sherman is a Legal Funding Consultant. He offers free, professional, and independent advice to plaintiffs involved in lawsuits (incl. business owners) & Attorneys. To apply for Lawsuit loan, Litigation Funding, Commercial Lawsuit funding, Law Firm loan, Attorney funding & Structured Settlement funding  please visit: http://www.easylawsuitfunding.com

Article Source: http://EzineArticles.com/?expert=Paul_Sherman

Avail the Benefits of Lawsuit Loans Today

By [http://ezinearticles.com/?expert=Mark_Stuhmer]Mark Stuhmer

Lawsuit loans can be taken from a reputed financial institution or a bank. The plaintiff does not need on monthly installments or payments and can take the benefits of lawsuit loans without involving any risk.

The term ‘lawsuit loan’ refers to the pre-settlement lawsuit of funding type that is not a loan in actual but it is a cash advance, an advance fee, or an investment. The plaintiff who suffers in case of a personal injury, seeks to take a cash advance for the intentional hurting or negligence of the settlement or verdict in a lawsuit, will not be offered a loan but with a “no recourse lawsuit funding”.

Lawsuit Loan- A Relief To The Plaintiffs
The highly appreciated benefit of the lawsuit loans is the fact that these types of financing do not involve the risk on the part of the plaintiff. In case the defendant prevails, if there is no recovery to be taken, or even if the lawsuit settlement gets finalized at an amount, which is much less than the total cash advance amount, the plaintiff is not held responsible for any recovery or payment. Also, it is interesting to note that the costs involved in the lawsuit loans can be substantial because they are prepared and structured in a way that ensures avoidance of usury laws.

A lawsuit loan is basically a cash advance that the plaintiff can use to pay for the immediate financial urgency and expenses. As the worker compensation and personal injury claims can take a large number of years to be settled, the plaintiff will be needed to wait for longer duration of time in order to pay the money that can used desperately in order to resolve the lawsuit.

Great Advantages Offered By Lawsuit Loans
A reputed lawsuit loan provider will carefully check the merits of the loan taker and see if there are any chances of loan recovery, in case the loan service provider gets satisfaction for the paying capacities of the loan taker, the claimant is offered a small portion of the total amount of the lawsuit as a loan.

So, this lawsuit loan is generally a funding or investment by the third party or the cash advance company that helps the plaintiff to carry on with their lawsuit settlements. When all the client’s savings and financial funds gets over, the litigation funding can work wonders by providing the essential amount of lawsuit loan.

This lawsuit loan amount can prove to be highly useful when a defendant intentionally or by negligence hurts the claimant and the plaintiff can conveniently use the loan amount to sue for the injustice suffered at the hands of the defendant.

This highly beneficial lawsuit loans have been designed and introduced due to the fact that in such cases the plaintiffs were generally not able to sue the defendant because of financial difficulties. However, with the coming of these lawsuit loans, the claimant can conveniently get the loan and have his share of right without any monetary hassles.

Types Of Injuries For Getting The Lawsuit Loans
Discrimination, medical malpractice, and workplace injury are the three main categories under which the plaintiff can take the beneficial services of a lawsuit loan. Although it involves a bit higher rate of interest, the advantage they provide are commendable. The claimant does not need to show good credit history in order to take these lawsuit loans and the tension of paying monthly payments also gets eliminated. So, in case you are facing any personal injury lawsuit but are not able to sue the defendant due to the shortage of finance, lawsuit loans can be the best option for your needs.

Mark Stuhmer is author of this article on [http://www.globalinjuryfunding.com]Lawsuit Loan.

Find more information about Lawsuit Loans here.

Article Source: http://EzineArticles.com/?expert=Mark_Stuhmer

How The Plaintiff Funding Process Works

By Morgan Todd -

If you are the plaintiff in a lawsuit or legal claim, you know it may take several months or years to settle your case. If your ability to work is hampered or your bills are unable to be paid, Plaintiff funding might be an important option for you.

The first step in Plaintiff Funding is for the plaintiff to contact a lawsuit funding company, often at the suggestion of their attorney. Based upon that information provided, the funding company estimates the value and likelihood of an eventual settlement, and offers a cash advance to the plaintiff based upon that estimate. The fee typically is a monthly charge that accrues each month the advance is outstanding. When the case settles, the advance and associated fees are paid to the funding company.

Funding advances generally are approved for about 10% of what your attorney may think your case will settle for. Therefore, most Funding Companies will offer pre-settlement advances in amounts between $500 and $25,000. Funding companies will generally charge a fixed cost between 2% - 8% monthly, depending on the information provided on the plaintiff’s specific case. This whole process often takes between 2 and 15 business days to get your money from your initial contact.

These advances are offered as non-recourse funding, which means that the plaintiff has no obligation to repay if the lawsuit is lost. Similarly, if the ultimate settlement is smaller than anticipated, the amount that must be repaid never exceeds the amount of the plaintiff’s share of the settlement.

Pros

No upfront fees or application cost

Receive money now - before the settlement

No credit check, no employment, no payment

Pay nothing unless you win

Cons

You must have your attorneys authorization
You must have an eligible type of case
Monthly fees are generally high due to risk

Given the fees involved in Plaintiff funding, it is important to review and consider all other funding options before proceeding with Plaintiff funding. But if your case is dragging on, you’re unable to work, you have reduced income, or you are incurring other expenses associated with care or disability, it may not be possible to wait until the end of the lawsuit before obtaining funds.

Jon Grodecki

(404)474-3577 http://webuyyourbusiness.com

jon.grodecki@webuyyourbusiness.com

Article Source: http://EzineArticles.com/?expert=Morgan_Todd

Settlement Funding

By Peter Emerson -

Settlement funding is the money made available to a plaintiff by a settlement funding company or attorneys fighting the case. Settlement funding may be a structured settlement or lawsuit settlement or life settlement. A structured settlement is the payment of money for a personal injury claim where all or part of the settlement calls for future periodic payments.  Lawsuit settlements are settlements based on compensation cases.  Life settlements are based on Life Insurance policies.

Lawsuit settlement funding may be pre-settlement funding or post-settlement funding.  Usually persons are not directly funded by their lawyers, because State Bar Associations recognize that when a lawyer becomes a creditor or client, a conflict of interest is created that may interfere with the attorney-client relationship.

Pre-settlement funding is given in advance to a person who has filed a lawsuit and is waiting for the settlement amount.  In post-settlement funding, a person who got a positive compensation verdict, but has not yet received the money, gets funds from a funding company in anticipation of his verdict amount distribution.  Both of these are non-recourse funding.  Pre-settlement funding involves considerable risk, is a complex process and the fee rate is also high, as the verdict amount is an assumed value.  Post-settlement funding is simple and usually no risk involved and the fee rate is low, as the verdict amount is a known value.

Structured settlement funding does not depend upon the assumed strength of the settlement, as the settlement value is already determined.  Moreover an annuity or government bond generally guarantees structured settlements.

Life settlement funding is advanced to qualified life insurance policy owners to liquidate a life insurance policy for an amount much higher than the cash surrender value.  If a senior person owns a policy that is no longer needed or affordable, then the life settlement funding companies help him in selling his life insurance policy at a much higher price. Settlement Funding provides detailed information on Lawsuit Settlement Funding, Life Settlement Funding, Post Settlement Funding, Pre Settlement Funding and more. Settlement Funding is affiliated with Burn Injury Settlements.

Article Source: http://EzineArticles.com/?expert=Peter_Emerson

Lawsuit Cases That Qualify For Pre Settlement Loans

By Stephen Sandecki -

When it comes to the different types of lawsuit cases it can be mind boggling. There are over fifty different types of civil court cases; thousands if you branch them off into their own specific field. Many plaintiffs in the middle of a lawsuit seek pre settlement loans as a source of cash during their pending lawsuit. They may use this cash to pay bills or even to fund their lawsuit case. Regardless of the reason a plaintiff should know what cases lawsuit settlement loan providers accept. In theory with so many different lawsuit loan providers in the industry one will at least fund your particular type of case. However, there is a general set of cases that they all will fund. Below is a quick list of the different cases that the majority of the providers will give loans for.

Asbestos
Auto Accident
Aviation
Breach of Contract
Civil Rights
Class Action
Commercial Litigation
Construction Negligence
Copyright (and other intellectual property) Litigation
Divorce Funding
Employment Discrimination
Environmental Litigation
FELA (Railroad)
Fraud
General Negligence
Inheritance Funding
Jones Act
Legal Malpractice
Litigation Funding
Mass Tort
Medical Expenses Funding
Medical Malpractice
Mesothelioma
Motor Vehicle and Passenger Injury
Nursing Home Malpractice
Patent Law
Pedestrian Injury
Personal Injury
Pharmaceutical Litigation
Plane Crash
Premises Negligence (slip & fall)
Primary Pulmonary Hypertension (PPH)
Product Liability
Securities Fraud
Settlements
Sexual Harassment
Slip-and-Fall
Structured Settlements
Surgical Expenses Funding
Trucking
Vioxx
Whistle blower
Workers Compensation
Wrongful Death
Wrongful Termination
Zyprexa

As you can see, the list of cases lawsuit loan providers will fund the plaintiffs for is staggering, and this isn’t even a complete list. This just provides you with the basic civil court cases a settlement loan provider may or may not provide plaintiffs with loans for. Regardless of what type of lawsuit case you’re currently involved in you should research the providers list of acceptable cases “before” applying for a lawsuit loan. This will save time and effort while trying to get access to the cash you need. If you want to learn more about the different type of lawsuit cases accept or want to apply for a lawsuit settlement loan then continue below.

Learn more about the [http://www.legalsettlementloans.com/type-of-cases-accepted/]cases accepted for settlement loans at the LegalSettlementLoans.com website. You can also apply online for a lawsuit pre [http://www.legalsettlementloans.com]settlement loan or get more general information regarding them.

Article Source: http://EzineArticles.com/?expert=Stephen_Sandecki http://EzineArticles.com/?Lawsuit-Cases-That-Qualify-For-Pre-Settlement-Loans&id=2083261

The Accident, the Injury and the Potential for Financial Ruin

By [http://ezinearticles.com/?expert=Dan_Reid]Dan Reid

The car in front of you stops without warning. The driver may be talking on a cell phone or reprimanding a disruptive child in the backseat. The reason doesn’t matter. What does matter is your life, and those with you, may never be the same.

The result is unthinkable. You sustain life-threatening injuries. You require emergency surgery and are required to endure a lengthy hospital admission, followed by months of painful rehabilitation. You’re out of work indefinitely and may never return. Initially you accept help from friends and family, because you have no choice, but you feel like a burden and your self-esteem begins to falter. You can’t pay your bills, and bankruptcy looms on the horizon. Everything you’ve worked for your entire life hangs in the balance and you have nowhere to turn.

Your lawyer assures you that your lawsuit against the offending driver will eventually be resolved in your favor, but the settlement may be months or years away. In desperation you ask your lawyer to loan you some of the money he plans to recover in the lawsuit, but he tells you that he can’t, because it’s a violation of the Disciplinary Code.

He reads you the applicable section from the New York Lawyer’s Code of Professional Responsibility: DR 5-103 [1200.22] Avoiding Acquisition of Interest in Litigation.

B. While representing a client in connection with contemplated or pending litigation, a lawyer shall not advance or guarantee financial assistance to the client…

What recourse do plaintiffs have?

Pre-settlement funding offers a potential solution to this overwhelming problem. Also known as non-recourse funding, a plaintiff may be eligible to acquire a cash advance against his or her anticipated award. A lawsuit funding company, a third-party unaffiliated with the plaintiff’s attorney, provides the proceeds.

The funding company fronts money directly to the plaintiff to pay bills, acquire medical services, or use in any way he or she sees fit — in return for a promise to repay the advance after the lawsuit settles. This is not a loan. It’s known as “non-recourse” funding, because the injured person does not have to repay the advance if the lawsuit is unsuccessful. In other words, if the plaintiff doesn’t recover, neither does the funding company. Therefore, it is in the best financial interest of the companies engaged in these practices to choose the cases they wish to fund carefully because there is always a chance that their investment may be lost. On the other hand, since the funding company is taking a substantial risk in advancing the funds – the fees tied to the advance are usually quite significant.
What steps must plaintiffs take?

The plaintiff takes the first step in contacting the funding company. For instance some companies provide an online application, which contains the vital information necessary for the funding specialist to consider. A representative of the funding company then contacts the potential client and his or her lawyer. The attorney supplies additional information about the case, and based upon the information provided; the funding company estimates the value of the potential settlement or verdict. The lawsuit cash advance is offered to the injured person based upon the estimate. The fee may be a flat fee, or a monthly fee that accrues each month the advance remains outstanding.

The injured person has no obligation to repay if the lawsuit is lost. Similarly, if the ultimate settlement or verdict is smaller than anticipated, the amount that must be repaid never exceeds the amount of the injured person’s share of that verdict or settlement. Because the attorney runs the risk of losing his investment, these advances are not characterized as loans.

Amounts available vary significantly, depending upon the nature of the case and the company involved. Some companies will fix the fee for the advance up front. Others will charge a monthly fee for each month, from the time the funding is issued until it is repaid, sometimes as high as 15% per month.
Lawsuit funding is not for everyone.

Litigation can take years. While cases are pending, the injured person has to have enough money to get by. If the injured person is unable to work, has reduced income, or has expenses associated with care or disability, it may not be possible to wait until the end of the lawsuit before obtaining funds.
Given the fees involved in pre-settlement funding, which could cause the principle to double over the course of a year or less, it is important for injured people to consider alternatives. Lawsuit financing should be the plaintiff’s last resort. The fees are premised upon the risk to the lender associated with non-recourse lending, but keep in mind that these companies choose their cases carefully in order to minimize their risk. In other words, if they offer you an advance they believe that you will receive money from your lawsuit. If you decide to obtain pre-settlement funding you should check with several companies, in order to obtain the most favorable terms.

Conclusion

Pre-settlement lawsuit funding should be considered at last resort. Due to the high cost of this type of funding, your decision to accept an advance should be made with caution. When seeking pre-settlement funding, it makes sense to check with several companies, to obtain the lowest possible fees.

Dan Reid assists plaintiff’s during the long process of civil litigation by financing their lawsuits. For more information on this. Go to: http://AdvancedLawsuitFunding.com

Article Source: http://EzineArticles.com/?expert=Dan_Reid

Can’t Afford An Attorney? Get A Lawsuit Loan

By Brad Schlieper -

Lawsuit loans are also called pre-settlement loans, lawsuit cash advances or lawsuit funding.  They are a piece of the little known field of legal finance and are meant to aid in relieving the financial strain, for you and your family, brought on at the time you’re pending winning certain types of lawsuits. Lawsuit Loans permit financially strapped plaintiffs to acquire an advance on a potential settlement in order to make payment on costs such as legal fees and living costs. They can render a much needed financial quick-fix if the purpose of the lawsuit leaves you low on funds.

If you’re hurt in a collision, what usually occurs when you anticipate a settlement is you wait for your medical care and wait even more so you can get well. Then you are required to hold on until your case is settled or goes to litigation and if you gain victory then you hold on a while longer to get what you’ve won! In the interim, nothing else is going to wait for you. The rent or mortgage still has to get paid, your bills do not care that you just won a case, your belly still rumbles when you’re starved, and if you’re not unlike me you perhaps enjoy running water and electricity. Bottom line life does not wait!

Now the good thing about lawsuit loans is that they are not even in fact loans. Meaning, you do not need to pay anything back if you do not win your case. If you do win, the company that granted you the advance will take a portion of your earnings, anywhere from 10-15% on average. If you think that is big, take into account that you’re inclined to get next to nothing from the insurance company directly. Individuals who obtain an attorney to represent them win about 5 times as much money on average.  They will even pay attorney fees if you have a firm case. This basically removes any gamble for you and lets you afford an attorney to go after a case for you.

To put it in a nutshell, this form of legal finance is not based on previous credit or bankruptcy status and really isn’t a loan at all since there is no payment if you do not win your case. A better term for it is probably “lawsuit cash advance”. A lawsuit loan can produce a very appropriate financial solution to help with those annoying bills while you’re waiting for payment. Lawsuit funding businesses take the risk out of defending your rights and reaping the payment you have coming.

Bradlee Schlieper is a   lawsuit loan specialist and advocate for   legal finance methods that help people get access to justice.  For more information on plaintiff litigation finance, visit http://www.mountaintopmtg.net/lawsuit-cash-advance-loans.htm

Article Source: http://EzineArticles.com/?expert=Brad_Schlieper

Lawsuit Loan FAQs

By Kevin Stith -

Lawsuit loan refers to a kind of pre-settlement lawsuit advance money, which is not exactly a loan but more like an advance fee lent by a finance company. When a plaintiff fighting a lawsuit involving personal injury seeks an advance, he is usually not offered a loan by financial institutions, but is instead offered the option of ‘no recourse’ lawsuit funding. This is referred to as a lawsuit loan.

What are the pros and cons of such a loan?

The main advantage of such a loan for a plaintiff is that it comes at no risk to him or her. This is to say that if the lawsuit goes against the plaintiff, he or she is under no obligation to pay back the loan at all. The main disadvantage is that such a loan comes with a very high rate of interest and thus is usually treated as a last resort measure by most people.

Can a lawyer lend money under lawsuit loan?

Under the law, a lawyer is allowed to forgo the cost of litigation until the case is decided but he or she is not allowed to lend money to the client because of concerns about creating a conflict of interest between the two. A lawyer might, in such a situation, have an interest in recovering the money and bend the course of the law in a way that may not be in the best interest of the client. Despite this, a lawyer is allowed to refer a client to a lender and verify the facts of the case with any other company willing to give a lawsuit loan.

What could be the other ways of funding oneself during a lawsuit?

A plaintiff may not wish to take no-recourse funding because of the high rate of interest and fees. In such a case, the plaintiff may consider trading in one’s home equity by taking a mortgage. One can even get a personal loan or other credit by borrowing money from family and friends.

When should one resort to a lawsuit loan?

There are times when a lawsuit loan becomes absolutely essential despite the high cost. This happens when the person has no other source of income or capital and needs money for urgent medical care or to pay for other expenses. In case of such dire financial straits that may have been brought about by the lawsuit in question, one should go ahead and take a lawsuit loan. [http://www.WetPluto.com/Lawsuit-Cash-Advances.html]Lawsuit Loans provides detailed information on Lawsuit Cash Advances, Lawsuit Loan Companies, Lawsuit Loan Services, Lawsuit Loans and more. Lawsuit Loans is affiliated with Lawsuit Settlement Loans.

Article Source: http://EzineArticles.com/?expert=Kevin_Stith

A Beginner’s Guide to Litigation Funding

By Tony Perkins -

Litigation funding can be a confusing concept.  Plus, most people have never been exposed to the concept of litigation funding so the average person probably has many questions such as:  What is a litigation funding?  Do I need litigation funding?  How do I get funding for my lawsuit?  When I am approved for funding, do I have to pay back the money?  If I am denied funding does it mean that I do not have a good case?  These are all very good questions and are answered below.

What is litigation funding?

Litigation funding is not a “loan” at all but rather it is a cash advance based upon the merits of a lawsuit that provides a plaintiff with sufficient funding to reach the conclusion of the case when the plaintiff will receive his/her fair share of the settlement or verdict.  Litigation funding companies invest in the lawsuit itself as opposed to advancing money to the plaintiff in the form of a loan.  Litigation funding is not based on a plaintiff’s prior credit or bankruptcy status.  Other terms used for this type of funding include: lawsuit loan, litigation finance, litigation loan, lawsuit funding, lawsuit finance, lawsuit cash advance, case loan, case cash advance, plaintiff cash advance, litigant funding, pre-settlement loan, pre-settlement lending, pre-settlement cash advance, etc.

Do I need litigation funding?

Litigation funding should not be a substitute for your settlement but rather a raft that helps you stay afloat while your attorney fights for you.  Too many plaintiffs apply for litigation funding with the belief that litigation funding is simply a different way to get their settlement money.  Assuming you win your case, the amount owed to the lending company varies greatly depending upon the length of time between the date of the advance and the date when you receive the settlement/verdict money.  You should exhaust other means of funding first.  Also, a good guideline to use is that litigation funding companies generally advance up to 10% of the estimated settlement amount.  There are some good internet sites that give more background on litigation funding.  Some good sources of information are The Funding Exchange (www.TheFundingExchange.com) and Expert Law (www.expertlaw.com).

How do I get funding for my lawsuit?

Litigation funding companies have popped-up all over the country.  Some tout their “low interest rates” or how they are the most lenient when it comes to approving litigation funding.  Many litigation finance companies charge random penalties and fees.  These penalties and fees help to offset their “low interest rates” and many times end-up costing the plaintiff more of their settlement.  A good option is The Funding Exchange (www.TheFundingExchange.com).  The Funding Exchange is a network of the most respected litigation funding companies in the industry.  You complete one application on The Funding Exchange and your application is intelligently routed to the best litigation funding companies for your specific case.

When I am approved for funding, do I have to pay back the money?
Almost all litigation funding companies give non-recourse funding to plaintiffs thus requiring the plaintiff to pay back the advance and fees/interest only upon a favorable decision in the case.  If the case is lost then you can keep the cash advance with no obligation.  If you win your case then part of the settlement amount will go towards repaying the cash advance plus interest and fees.  The amount owed to a litigation funding company increases the longer that your case takes to settle so keep that in mind.

If I am denied funding does it mean that I do not have a good case?
The simple answer is “no.”  Being denied for funding does not mean that your case is not a good case or that you will actually win less money than you think.  There are many different reasons why funding is denied.  One reason is that the estimated settlement date is too soon.  Litigation finance companies make money by accruing interest on their investment in your case.  If your case is supposed to settle in 2 months then a litigation finance company will not make any money because the settlement date is too soon and therefore they may decline the funding request.  Other reasons for denying funding include: attorney will not provide documentation, attorney will not sign contract, plaintiff demands too much money, etc.

Conclusion

As a plaintiff, you should understand litigation funding and the process of securing funding before you apply.  If your expectations are set correctly and you proceed with litigation funding then you will find that it is a saving grace in the turbulent world of litigation.  If you apply for litigation funding without a true understanding then you may be disappointed.

About the author:
Tony Perkins is the founder and president of The Funding Exchange ( http://www.TheFundingExchange.com) which connects the top litigation funding companies in the country to people in need of a lawsuit loan.  The Funding Exchange is not a litigation funding company but rather it is an independent 3rd party company that routes a high volume of applications every day to its network of litigation finance companies.  Mr. Perkins has unbiased experience in helping secure litigation funding.

Copyright 2006     The Funding Exchange, LLC

Article Source: http://EzineArticles.com/?expert=Tony_Perkins http://EzineArticles.com/?A-Beginners-Guide-to-Litigation-Funding&id=161832

Financing A Lawsuit

By Joseph Kenny -

Financing a lawsuit provides monetary help when a person seeks legal remedy in a court of law, and does not have the finances to bear the expenditure. The expenses covered by lawsuit financing companies include attorney fees, medical bills, health care, rent and mortgage, food etc. Cases funded by lawsuit firms include personal injury, workers compensation, motor vehicle accidental injury, wrongful death, medical malpractice, product liability, breach of contract, fraud and others.

However, this should not be mistaken for a loan, as it is non-recourse. That is, the client does not have to repay the amount if he or she loses the lawsuit. The risk is undertaken entirely by the companies. A loan, on the other hand, usually has a definite payback schedule within a fixed period. As there is no way of determining how long a case will run, there is no rigid schedule of repayment followed by lawsuit financing companies.

These companies usually lookout for cases that have a strong chance of winning, in order to reduce the risk of losing money. They have an in-house attorney who studies cases, and decides which of those are more likely to win. Subsequently, they fix the amount that is to be provided to the client, according to his or her needs.

There are basically three types of funding:

1. Pre-settlement funding:

Companies provide funds before the verdict is announced. These are generally provided when the client, due to some injury or some other reason, cannot work and earn money to pay the fees. If however, the verdict goes against the client, the company does not retrieve the money.

2. Post-settlement funding:

Firms give money only after the lawsuit is settled. In such cases, however, they do allow partial advances.

3. Attorney Loans:

The firms directly provide the attorney a long-term credit that will take care of all the expenses incurred.

However, before accepting help from such companies, it would be wise to consider the terms of repayment, and options available. The terms include the flat fee and the recurring fee. One should make an exploratory survey of different companies, and choose the one that is the most suitable. However, the chances of getting such funding would be negligible, if a case has a higher probability of losing, because lawsuit-financing firms scrutinize each case very carefully before providing help. Generally, this kind of service is provided to only those whose attorneys are ready to bear the huge expenses, which the client cannot provide.

Some clients are often compelled to obtain lawsuit financing at a high cost. For example, they may either need to pay their medical bills, pay the rent or mortgage, or avail of health care facilities. If there is no other source of income, lawsuit loans are often the best option. It is advisable to involve your attorney in processing a lawsuit loan, since he or she may be able to find you a funding company that offers the best terms. An attorney will also be able to help you review the contract before you sign up with the lawsuit funding company.

Joe Kenny writes for Card Guide, offering the latest information on [http://www.cardguide.co.uk/]UK credit cards, visit them today for more [http://www.cardguide.co.uk/articles/]credit card articles.
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Article Source: http://EzineArticles.com/?expert=Joseph_Kenny

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