When to Seek Litigation Financing
Litigation finance comes with certain conditions that it is important to know of before going in for it. Some people rush in to use it without understanding what it means to their future. You ended to find out more about how to go about engaging these services.
Litigation finance refers to the cash advance one gets based on the strength of their lawsuit, to help them fight the case to the end. You are expected to pay it back when your case is over, and you have gotten the settlement amount. This should not be looked at as a loan. This money is not given to you personally, but directly to your case, where they see a high chance of you winning. This means that you are not obliged to reveal your credit history or whether or not you are bankrupt.
You do however get charged an interest on this loan. You will notice differences in how much each company charges. They are placing a huge risk on themselves, seeing as a case is only certain when it is over. Their investment is not within their control. Cases that may have seemed destined for certain outcomes can quickly turn direction at the last minute. This is why they will charge high interests for their advances. This sees them make up for all the unsuccessful cases when one goes through successfully.
They may also lay on other charges on you, apart from the interest rates. They are also dependent on the company you decide to use. They will state these additional charges in the contact this contract is usually assigned by your lawyer, which will then be presented when the case is over and won. You will see charges like origination fees, application fees, a documentation fee, closing costs, a premature payoff penalty, and others. They share such items with what normal loans attract.
The litigation finance amount should not be looked at as a faster way of getting your settlement. This is only an amount that helps smooth out the operations of your defense. You need to remain clear on what it is here for. These two amounts in question are hardly ever the same. The amount you have to pay the financier depends on the time it took from you receiving it to the time you win the case and get your settlement money. It is advisable for you to seek other sources of funds before delving into this option.
It is thus important for you to have these details handy when you have to approach such a financier. When your situation allows for this kind of arrangement to win your case, you shall benefit greatly by understanding all that goes into this arrangement. If you go in blindly, you may end up extremely disappointed when your case is over.