A lot of things can be said about litigation funding, not the least being that qualifying for it is quite simple and straightforward. While legal funding companies have various requirements, they’re usually minimal. But it’s still a good idea to know what these requirements are to avoid misunderstandings during the application process.
An Attorney is Required
First of all you must have an attorney with whom you have reached a contingency-fee agreement. What this means is your lawyer agrees to get payment from the settlement proceeds that will emerge from your case. If you lose the case and don’t get any awards, then there won’t be any payment.
Legal funding companies cannot provide you with an attorney, so you need to hire one first and inform him that you plan to engage the services of a legal funding company. Make sure that this matter has been settled first before you get in touch with any legal financing firm so everything will move along smoothly.
Second, the litigant (in this case you), must have suffered some kind of personal injury, because property damage alone is not sufficient for a case to be accepted. Third, the person or company you are suing (i.e., the defendant and/or their insurer) must have the means to pay you or make a settlement.
Your attorney should also agree to the transactions involving the litigation funding company, and that they will be paid out of the settlement proceeds. This agreement, it should be noted, must be in written form. This is not just for legal purposes but also serves as protection for you since it indicates that both parties have reviewed the case and found the terms acceptable.
Bear in mind that your attorney’s involvement and approval are mandatory, and you should be wary of any legal funding company that says otherwise. If the funder says your attorney is not required, you’re better off looking for another legal finance company.
After you meet all the requirements, the litigation funding company will provide you with the cash advance necessary to ease the financial pressure that legal cases bring. By availing of their services, you’ll have the means to go through the legal process without fear of getting into debt.
The importance of legal funding services cannot be stressed enough as going up against a company with deep pockets is very difficult. It’s hard enough to pay for legal expenses, but if your injury prevents you from working the situation becomes even harder. But with a bit of legal funding you can feel comfortable about going along with the case.
The services provided by litigation funding companies have proven popular, leading to the emergence of more businesses in this industry. This is good news for prospective litigants because it means the cost will go down. However, your choice should not be based solely on the fee but also the kind of service provided. At the very least, the company should explain how legal funding works, what their criteria are and how long the process take.