Lawsuit Financing: Legal Financial Assistance For People

2007-03-08 10:33:40

( Insurance )



Individuals often think that lawsuit financing and receivables financing mean the same thing; however, both somewhat differ from each other. Both receivables financing and lawsuit financing are both related to obtaining financial assistance. Receivables financing involves the selling of a company’s invoices to a third party. The value of your invoices are exchanged to cash that is almost equal to actual the invoice amount. In contrast, lawsuit financing is a form of cash advance given to an individual requiring financial assistance to pay for certain legal expenses.

Lawsuit financing can be used to pay for the services of expert witnesses, file appeals, to pay for your lawyer and many more. Lawsuit financing is ideal for people who have been wrongfully dismissed, are facing malpractice or sexual harassment cases, are victims of discrimination and many others.

Lawsuit financing, also known as lawsuit loans are only granted to individuals who have a strong chance of winning a case. A decision making body is normally formed within the company, and is comprised of a legal team who evaluates the strength of your lawsuit. The legal team will argue certain points of your case and from there decide whether to grant you the cash advance.

The lawsuit financing company is usually paid back only after a verdict is reached and the case is won. The amount that is paid will depend on the initial discussions that would occur before the cash is received. The lawsuit financing company can earn by charging the plaintiff a monthly fee in proportion to the amount of money that was borrowed. Alternatively, an agreed flat fee in addition to the money that was lent can also be charged.

Lawsuit financing companies can be found advertised on the Internet with complete information on how to go about applying for lawsuit financing.

In order to increase the chances of obtaining lawsuit financing you should get a good lawyer. You must also impress the lawsuit financing company with a large potential settlement value on your case.


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