What Can Be The Benefits And Drawbacks Of Lawsuit Funding?
Lawsuit funding is the process where the litigants can sponsor their legal costs through a third party funding company. It is however not like the traditional loan where you are paying monthly interests. If the litigant wins the case, then only he will have to repay the amount. You can visit http://www.topconsumerreviews.com/lawsuit-funding/ to learn more about various funding companies. Here we can go through the advantages of hiring this type of third party companies:
Buy Time: The lawsuit funding company can provide enough time for your legal case. For example, if you have gone through an accident and are struggling to recover, then the fair settlement with the insurance company can be a matter of long time. Now, if you have opted for a claim against lawsuit funding, both you and your lawyer can breathe and get ample time for fighting the case.
Immediate Cash: As the funding company provides with instant cash within a week or sometimes 24 hours after approval, you can pay all your legal bills up to date. You are not required to repay the amount unless the case is getting settled. Therefore there is no risk involved as you are not required to pay if you lose the case.
Personal Guarantee or Credit History: A solid credit history or a personal guarantee is not required for applying the lawsuit in the funding companies. Therefore, any litigant who is struggling with a case can apply for the fund. Even law firms opt for third party financing when they go short of funds.
Online Application: You can apply online by mentioning the name and contact number of your lawyer. Many companies provide online application forms where the submission is free without any hidden upfront costs.
Not A Limited Time Offer: Unlike the other financial institutions, lawsuit funding does not offer money for a limited period of time. You can take your own time and think about all your legal needs before applying for the fund.
Stress Reliever: It can also act as a perfect stress reliever in your time of need. You and your family
can easily get out of the stress of the legal proceedings.
Free Client Resource Center: Some of the companies may provide with the client resource center free of cost. These centers can guide with proper knowledge and skills so that the clients can move smoothly through the whole litigation process. They also help in searching the local and national options for assistance, offer tips for saving money, manage the budget properly and all the procedures for minimizing your financial burden.
With all these benefits, there are few drawbacks of the lawsuit funding companies. These can be:
High Interest Rates: There can be some companies who charge high interest rates from the litigants.
Non-Cooperative: Some companies may have a bad reputation for not cooperating with the lawyers or the attorneys you have appointed.
Delay in Providing Funds: Some of the lawsuit financing companies may provide the cash after a long time, even when everything is approved. They may have long procedures and regulations that need to be fulfilled after the approval. The delay can affect the legal case and the litigant may lose the case due to the short of fund.
Hidden Fees: You must be aware of the hidden fees, if any, before applying in any funding company. There should not be any charge unless the claim is settled in a positive way. If a company charges any amount, you must avoid taking fund from them.
If you are fighting any case with a financial crunch, you can always opt for the popular lawsuit funding companies and live a stress free life.
Author Bio: Roger Anderson is a well known legal professional who is working in a lawsuit funding company for 10 years. In this article he shares the advantages and disadvantages of applying fund from the lawsuit financing companies; you can go through http://www.topconsumerreviews.com/lawsuit-funding/ for more information.
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