Settlement capital is available through legal funding companies. This money is intended for persons with a valid legal argument, who lack the funds to pursue settlement. Legal funding companies will research many factors including the validity of the complaint or history of the lawyer chosen to represent the case. Even your own personal legal history will be reviewed.

When Settlement Capital Isn't Awarded

If you have a history of bogus legal claims, you are considered a bad risk for legal funding, even if your current complaint is valid. Unfortunately, it's a case of "The Boy Who Cried Wolf." Assaulting the court system again and again with inappropriate cases will not seem very sympathetic to a judge nor a legal funding agent. A legal funding company will only finance a claim that appears valid.

Once liability, damages, and other key factors are considered, settlement capital may be awarded. The settlement will most likely be agreed upon without having to go to court. Most legal complaints never make it to court. Lawyers meet and negotiate until all parties are satisfied, then a settlement is drawn up.

Payback

Settlement capital is not a traditional funding. Traditional loans must be paid back regardless of any outcome. Legal funding works more like a bond. If the case is lost, the funding is never repaid. The advantage of this is clear. If you are tied up in court and ultimately lose your case, the last thing you want is added debt to repay.