The process of legal funding always doesn’t work for litigants. In certain situation they take certain longer period of time than the expected ones but they end up giving huge amount of legal finance to the user. There are number of examples wherein the litigants have won the settlements or even have become the legal funder as awarded by the court.
Pros and cons
Pro: One of the major advantages of legal funding is that the repayment of the finance is quite clear meaning the litigant need not have to pay for the legal funding companies even if they lose the case also. In the traditional method of paying back the loan amount, it forces the people to sell all their assets and go bankruptcy. In such cases, the legal funding company will not be having any other alternative and as such the litigants need to wait till them their case is successfully completed.
Con: In certain cases, the legal funding companies will not be paid back. They charge you quite more than you expected and also based on their risk taking. Some of the legal funding company will charge you with the higher rate return, in some cases they provide 100% rate of return. The entire process of legal funding is very expensive and as such it is advised for the persons to make use of the legal funds as a last option. But if you still want to make use of it, use it to a slight extent but never make use of the legal funding option juts for the reason that you can’t wait for the proceeding as you need to move on for a vacation.
Pro: Legal funders will not conduct credit checks. If you are having low or no credit, then the legal funding might be the only best option to consider if you desire cash when a lawsuit is enduring.
Pro: Legal funding in the lengthy lawsuit, aids a plaintiff to say no to low or unfair settlement offers. The risk involved in legal funding factually oftentimes forces insurance firms to re-evaluate their offers, knowing the fact that plaintiff has several other options.
Pro: A plaintiff utilizing legal funding does not have to make payments if the lawsuit is yet pending. The plaintiff must only pay to the legal funder if the lawsuits settle or when the plaintiff wins the court award.
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About the author
Michael Smith is the Customer Experience Director at 911 Lawsuit Loans LLC and is responsible for client relations throughout the funding.