Basically, two parties are involved in this type of funding. They include; a litigant and a third party funding company. After getting finance from a third party funding company, litigants use the money throughout the legal process. For a third party funding company to give money to the litigant in question, they must assess a litigant case closely. At the end of it all, the case should possess a lot of merits. This is due to the fact that, it is only at the end of the settlement that a third party company benefits. This is because, it is at this point that it receives a percentage share of the judgment. Legal financing is also referred to as settlement financing, litigation funding, professional funding, third party funding and legal funding.
The number of lawsuits filed each year are so many. In addition, the cases are not only many but also tiresome. It is during this period that litigants are faced with financial difficulty. As a result, they end up being stressed. The need to ask for financial assistance from third party funding companies comes in here. In this article, you will find the advantages of legal funding.
First things first is the cost of living. Other life businesses continues taking place even if you have a pending lawsuit. This means that your life continues as normal. You will have to pay water and electricity bills. You will be required to pay for your children school fees and mortgage loans. Fuel and food will also be needed. Money is needed to take care of the above bills. Legal financing becomes the most appropriate option. This is attributed to the fact that legal funding companies do not dictate on how you should spend the money.
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The process involved in acquiring a loan is a difficult one. This is not applicable in lawsuit loans. This means that you will not be required to move up and down arranging documents and files. Having a lawsuit case and a lawyer is enough. Having these two guarantees you a normal life. At no point should you get stressed because of hospital and rent bills. Assistance from a third party funding company should give you peace of mind. This is possible until the settlement of the case goes through.
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Note that, legal funding companies do not receive compensation if the case fails. This becomes an advantage to the litigants. On the other hand, it is important to note that incase the case wins, litigants pay a lot of money to the third party funding company. Usually, it may double or even triple the amount you were given at the very beginning. In addition to this, litigants are relieved the burden of time limit tension. Loan repayment is done after the lawsuit case is settled. The fact that lawsuit cases lasts for a number of years is not put into consideration.