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Lawsuit Funding

Written by LawLeaf
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Lawsuit funding is a term that is commonly used throughout the legal industry. There are essentially four types of lawsuit funding options. There is pre settlement funding, commercial litigation financing, structured settlement payouts and attorney loans. When describing these forms of funding you need to evaluate each case.

Pre settlement funding is typically referred to as personal injury funding or plaintiff funding. This is a cash advance against an active lawsuit. This type of funding typically comes as non recourse meaning you only pay back the money if your attorney is successful in winning your case. Several examples of pre settlement funding cases include: car accidents, slip and falls, wrongful death lawsuits & product liability cases. The money is lent before a case has reached settlement.

Commercial litigation financing is a type of funding that typically has to do with lawsuit geared towards business. These types of lawsuits are typically contract disputes, copyright infringement, entertainment litigation, discrimination & wrongful termination cases. Oftentimes these are multi-million dollar lawsuits.

A structured settlement is a payment received for a case over a set period of time. When people request funding against a structured settlement they have two different options. They can ask for a partial payment or full buyout of the settlement. Most lawsuit funding companies offer both full & partial buyouts.

Attorney funding also called law firm loans can mean requesting money to finance a case, a credit line or a loan to help build a law practice. This type of funding sometimes is also non recourse.

Most personal injury lawyers believe it's always a good idea never to settle a case without fully understanding all expenses surrounding a case. This means you should always consider the overall expense of an accident before prematurely settling a case. Oftentimes plaintiffs will prematurely settle a case because they are financially incapable of continuing the litigation process. Lawsuit funding can help a plaintiff pay off bills while the attorney is seeking full and fair compensation from a case.

If you are currently searching for lawsuit funding and you want a network of lenders to compete for your business, begin by applying online.

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