Funding Personal Injury Lawsuits

Written by Michael O'Brien
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Funding personal injury lawsuits can be one of the most difficult tasks for those faced with such a possibility. The reason for this is because personal injuries usually result in the inability of a person to earn his or her livelihood, either temporarily or permanently. Funding personal injury lawsuits is the last thing one finding him or her self in such a situation can afford. What can be done?

Funding Personal Injury Lawsuits: Emergency Relief

Lending companies offer a solution to funding personal injury lawsuits to those who are unable to do so on their own because of their debilitated state. A cash advance or line of credit is extended to pay for lawyer, court, medical, and any other necessary fees. These companies make their money on the interest from the cash advance. When the client wins the case, he or she pays back the cash advance from the winnings that are earned.

Many such funding companies adopt a policy that if no winnings are earned from a case, you don't need to pay them back. Although this may sound like a "too good to be true" proposition, it isn't. What this simply means is that a legal funding firm will make certain it is funding money to a winning cause. How is this determined?

Most legal funding companies, such as Captran, get their business from lawyer referrals. This means these firms know who they are dealing with and are aware of an attorney's track record. If a particular lawyer has made a recommendation that a case be funded, then there is a good reason for it. That lawyer has a great deal of confidence in the success of the case and knows the legal funding firm will make money on its investment.

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