Plaintiff Advance

Written by Michael O'Brien
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A plaintiff advance is available for people who wish to prosecute, but lack the necessary funds to do so. Legal funding should be sought only after all other avenues of income are exhausted. Lawsuits grow more costly each year. In many instances, would-be plaintiffs have very valid cases, but do not have the resources to pursue a case. This is why legal funding is available.

Good to Receive a Plaintiff Advance

It's a good sign if you are awarded a plaintiff advance. These advances are non-recourse, meaning that a funding is given with the intention of the suit being won. If the case is lost, the plaintiff does not have to repay the funding, and it is simply a wash for the lender. A plaintiff advance is only granted by a legal funding lender that believes the case is going to be won.

You Are Not in Debt

If the case is won after a lawsuit advance has been granted, the money is paid back from the suit winnings. A simpler tact would be for a plaintiff to simply borrow money from his lawyer. However, this creates a conflict of interest. It is not only legal, but more judicious for a third party to provide the legal funding.

When acquiring legal funding, you do not have to pay back the funding out of your own money, even if you do not win the case. In effect, the company providing you the money is investing in you on the hunch that you will win in court and they will receive their fees. If you do not win, neither you nor your legal counsel is indebted to the legal fund company. There is no immediate consequence, although it will most likely be more difficult for you to obtain legal funding advances in the future.


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