Litigation Financing
litigation financing
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Panel Q&A: Third Party Financing of Litigation
Litigation Financing
At LawLeaf we are asked questions each day regarding the litigation financing process. Litigation financing is a lawsuit advance against a pending claim. In order to qualify for litigation financing the applicant must be the plaintiff in the case. Litigation financing is a fairly new concept that most attorneys and plaintiffs are unaware of. Litigation financing serves as financial assistance while the plaintiff is wrapped up in the legal processes of a lawsuit.
Before the option of litigation financing, plaintiffs were forced to settle their claim if they hadn’t the financial capacity to move forward with the process. While most plaintiffs may have understood the repercussions of an early settlement their current financial position gave them no other option. The insurance industry has the reputation of offering lower settlement offers because they no a vast majority of people can’t financially sustained.
Litigation financing can prevent some people from early settlement. It can serve as a financial stop gap between early settlement and full compensation. Insurance companies have the financial and legal resources to extend a life of a claim. They understand that the average American is having trouble paying for bills and everyday expenses. They are making record breaking profits each year which have a lot to do with smaller payouts. A person can understand why the insurance industry is against litigation financing. They see it a potential crutch to their bottom line. They understand that if a plaintiff decides to extend the life of their claim that it will cost the company more money for litigation and attorney costs which ultimately affects the bottom line.
Litigation financing is a way to put money in your pocket before a settlement is reached. It serves to counter lower settlement offers in hopes for fair compensation. Litigation financing is now being used by more plaintiffs throughout the United States due to a down economy and increased popularity.
The litigation process can be effectively streamlined if done correctly. While some companies take different approaches it’s important to hire a company that puts its clients interests ahead of its own. The LawLeaf process includes an initial application or phone conversation with the plaintiff. This serves as permission to contact an attorney. Upon given permission to speak with an attorney, immediately be in contact with the attorney or someone within the office for a document request. These documents are used to assess the viability of an advance. Once the documents are received the underwriter should immediately begin evaluating a case and determine if the client should be approved for litigation financing. Once approved the underwriter should contact will be send for review and signed. At this time the underwriter will regroup with the client and set up an arranged payment depending upon the client’s preference. The process can take less than a day to several days depending upon how quickly the documents are received.
If you are searching for additional information regarding litigation financing, begin by visiting LawLeaf.
