The concept of legal funding can be generally confusing to people who are new to the courtroom. With so many legal terms out there, this confusion is understandable. This article will hopefully provide some clarification to those who are confused and/ or have their doubts. If you’d like to learn more about the legal funding process, take a look at our comprehensive legal funding guide.
Here are 5 common legal funding myths, debunked:
Legal funding is a loan.
The term “lawsuit loan” can be slightly confusing. The definition of a loan is an amount of money that is expected to be paid back, in addition to interest. Traditional loans must be paid back in all cases. Legal funding, on the other hand, does not require monthly payment. It provides an amount of money to the plaintiff or attorney, however, the lender is only entitled to payment if the plaintiff wins the case. If the case is lost, the plaintiff does not owe the lender anything.
Lawsuit funding companies interfere with legal process.
Lenders do not interfere with the case; that is the responsibility of a lawyer. We are simply here offer financial support to the plaintiff so that they are able to go up against the defendant. This allows a financially level playing field between the plaintiff and defendant (who are oftentimes much more successful individuals or large corporations). Legal funding companies essentially claim a part of the plaintiff’s lawsuit winnings, and are only able to collect if the plaintiff actually wins the case.
All legal decisions are solely made by the plaintiff and their lawyer.
Legal funding is illegal in your state
Legal funding is completely legal! To some, especially defendants, it may appear as though funders are taking sides and unfairly helping sway a verdict. However, legal funding is perfectly acceptable in most states.
Certain organizations, such as The American Legal Finance Association (or ALFA), are put in place to ensure fairness within this industry.
So many individuals turn to legal funding to help them through the legal process, and this is done in an ethical and legal manner.
If you still have doubts, do a bit of research on the thousands of applicants seeking legal funding assistance.
If you’ve been denied from several legal funding companies after hearing the state you live in, it’s probably because there is burdensome regulation or case precedent in your state. Uplift can help plaintiffs nationwide.
Legal funding exploits the plaintiff.
It is common for plaintiffs who are new to the legal process to be skeptical of lenders. However, legal funding is there to help plaintiffs who do not have the financial resources to withstand a long trial. There are no gimmicks or hidden clauses that require repayment. It is the lender who takes on the risk of losing money if the plaintiff does not win the case. Each case is handled individually, and accurate calculations are made to determine how much will be given to the plaintiff. The risk of any individual case determines the funding rate.
It is difficult to receive legal funding.
Acquiring legal funding does not have to be a long, tedious process. Unlike acquiring lawsuit loans, we do not need an employment check or credit history. The application is proven to be simple as well. There are no application fees, as well as no payment necessary if the case is lost. All the plaintiff needs is a strong case, and we will be on their side.
Here at Uplift Legal Funding, we provide reliable customer service and are readily available to guide you through our three step application process. With us, plaintiffs will experience complete transparency and fast cash transfer. It’s time to take control of your legal journey. Apply today.