How Legal Funding Can Help You
As many people are all too aware, lawsuits can prove to be long, drawn-out processes. This can mean months and sometimes years before a case even reaches a legal court. In addition to the emotional stress this creates, financial resources can also become stretched.
Not only are there likely to be medical, but also regular living bills still need paying. For anyone injured and out of work, this can be a huge burden to carry. Luckily, help is at hand to aid you through such situations.
The Long Legal Process
While the legal system was first designed to protect the individual against injustice, the reality often creates many unforeseen hardships. This is partly due to the sometimes complicated processes put in place to ensure a fair trial.
However, it can also arise through facing a rich and powerful opponent during a prosecution. All of this can quickly lead to many, many hours required to build your case. Even negotiating a settlement can prove more time consuming than many people expect. If you are injured and unable to work, this stretch of time can seem insurmountable.
Beginning legal proceedings is a decision which should not be treated lightly. For many people, it is a decision which has been made for them though. Irrespective of why you enter the judicial process, you will need to carefully lay your plans. This includes:
- Deciding upon your minimum objectives
- Collecting as much documentation as possible
- Explore alternative routes of action
- Budgeting your potential expenses
Build a Partnership to Success
The most important person in helping you plan all of this is your lawyer. They should have plenty of knowledge and experience which can guide you to a more realistic plan. Therefore, finding a reliable and competent legal representation is vital.
Because you will need to work together as a team in fighting your case, you should choose someone you feel comfortable being around. There may be a pressing need for you to quickly find someone to work with you.
However, you should also seek two or three trustworthy law firms to provide a more informed decision. It’s critical that you always have a private consultation with an attorney prior to choosing them though.
While most personal injury attorneys work on contingency, some charge higher rates than others. Also, some will require that you pay for certain legal expenses. It is important to discuss these items up-front.
Concerning legal matters, being honest seems like the most obvious advice there is. However, being honest regarding your personal situation is something easily overlooked. Not everyone has a firm grip on their personal finances.
Knowing what you will need to survive comfortably in the short-term is crucial though. Before entering any major undertaking in life, you should always reassess your finances. But this is only beneficial if you are brutally honest with yourself.
Once you’ve calculated your monthly bills and expenditures, you will then need to add in all potential legal costs. The trick to good budgeting is always ensuring there are surplus funds available for unexpected emergencies.
Bridging a Shortfall
For many people, the numbers don’t always add up. This can be especially true if there are medical bills or car repairs which need paying.
More-so again if you find yourself unable to work during this period. Whatever the reason, inadequate funds creates an incredibly stressful situation. Not only does this have adverse health risks, but it can also affect your legal case.
The traditional solution to this predicament was often found through loaning money. Either through friends, relatives, or financial companies, borrowing money was the only viable option for many.
This is far from a perfect solution, adding extra risk to an already stressful process. However, there is another solution currently available.
What is Legal Funding?
Similar to a loan, legal funding can provide a lump sum of cash to help make ends meet.
Unlike a regular loan, legal funding is far less risky to the individual. This is primarily due to the fact the fees, interest and principal are only payable if you win your case.
If you are not legally successful, there is nothing which needs to be paid back. There will also be no negative impact on your credit rating if you take legal funding.
Who Can Apply for Legal Funding
Legal funding is primarily designed to aid clients who are financially struggling through no fault of their own. Essentially, it can be seen as a way of buying extra time for a client. This is meant to reduce financial pressures and allow for higher compensatory rewards.
Unfortunately, legal funding companies cannot fund every type of case. The first thing to note is that it’s only available to people with valid personal injury claims. Furthermore, not every plaintiff will qualify for access to these funds.
If you have a strong case and have growing financial problems, some insurance companies will try to push you towards an unfairly small settlement. Pre-settlement funding can help keep you on your feet so that you and your attorney can fight back.
How Does Legal Funding Work
There are many reputable companies which provide this service. You may need to do some shopping to find one that works for you.
Once secured, they are then unable to impact or interfere with the ongoing case. While it’s possible to seek legal funding as an individual, consulting your lawyer about such a decision is a wise move.
Insightful recommendations and avoiding bad deals are definitely in your best interests. With a working knowledge of the legal funding system, lawyers are well-placed to help you decide. And because lawsuit loans can be expensive, this decision can be as crucial as any other which you make during your litigation.