subject: What Is Legal Funding? [print this page] What Is Legal Funding? What Is Legal Funding?
Legal Funding is actually fairly simple. Funding companies provide individuals with money while their settlement or lawsuit is pending. An individuals pays interest for a set amount of time, and when the case settles, they pay the money back, plus interest. A very attractive attribute about legal funding, is that if the case is lost, the individual owes nothing.
Why Legal Funding Is Needed
Many people who seek funding because they were involved in an accident, injured, out of work, or because they need money to continue their case. This type of funding can be life saving, especially for someone who is out of work, needs to pay their bills, and feed their family until their case is settled.
What Kinds of Cases Are Eligible For Funding?
Many types of cases are eligible for funding, anything regarding personal injury, medical malpractice, legal malpractice, negligence, and even civil rights, and some divorce cases.
How Long Does it Take, and What is the Legal Funding Process?
Any company that provides legal funding is going to want to do their research on the case, and require court documents, police reports, or any type of documents that will help them define the case. This information will help the company decide how much is necessary to fund, based on what the potential outcome will be, and the probability of successfully winning the case.
The steps to approval usually are:
Underwriter from funding company requests supporting documents
Based on review of the case, underwriters either Accept or Deny the case
The funding company offers the individual terms, for amount, and interest rate
Once the individual accepts the terms, the clients receives the funds usually by direct deposit within 24-48 hours
Basically, it is a pretty straight forward process. In all, is based on the strength, and the potential amount of the settlement in the case.
Getting legal funding can be a life saving decision, especially for those that are injured and out of work. It can provide the amount of money that someone needs to pay their bills, support their family, and to receive the medical and legal assistance that is needed at the particular time until the settlement is reached.
