Anyone who is involved in a legal battle experiences considerable financial pressure. There are many money requirements in a legal proceeding, which makes the involved parties experience challenges.
The issue becomes complex if one has suffered personal injuries and is looking for compensation. In such circumstances, they are not getting any income, which complicates their financial situation.
Benefits of Legal Funding
However, in the last few years, legal funding has become a major resource to the plaintiffs as they get some funds to continue operating normally. They can sustain the case until the damages and compensations are awarded. Looking for legal funding comes with some advantages. Some of the four benefits of legal funding include:
- A clear method of repaying the loan
- No huge interest charges involved in legal funding
- Helps you to hire a lawyer
- Supports livelihood while awaiting compensation
Although the benefits of legal funding are clear for the plaintiffs to be enticed, it is always essential to consider all the necessary factors before applying for legal funding. This article details some essential factors to know about legal funding.
1. Cost of Legal Funding
The first important factor that you should know before applying for legal funding is that it involves exorbitant charges. Most of the lending companies are not always sure that you will be getting compensated.
To protect against extreme financial losses, these companies have to charge very high monthly fees, which amounts to hundreds of dollars. The financial requirements may get out of control if you involve a broker because they will always include some markup prices.
2. Obtaining Legal Funding
There is always a process involved when you are applying for legal funding. However, you don’t have to act alone in this process. You need to work with your case manager or your lawyer, as this is the only way you will get some good recommendations.
Your lawyer may advise against legal funding depending on the status of the case. However, suppose your lawyer is sure that you will win the case and be compensated. In that case, they will always recommend that you apply for legal funding because they will benefit where necessary.
3. Is Legal Funding Right?
Establishing whether legal funding is right for you should be the foundation of determining whether you need this money or not. Many people abuse the entire process of legal funding because they want to have money.
However, it is always necessary to establish how the money will help you and your case. If you need money to cover your medical bills, applying for legal funding might be a necessity that you cannot ignore.
If you have been incapacitated to work, you might need some legal funding to sustain your livelihood by replacing your income. If you cannot work, you have sufficient justification for legal funding. However, you don’t need this if you’re still working and getting enough income to sustain your family and medical expenses.
4. Select the Right Legal Funding Company
How quickly you will get your pre-settlement funds highly depends on the company that will be rendering you such services. Some companies will take many months before they can render you money, which means you will suffer before getting any assistance. You must work with companies that are willing to help you immediately and not charge exorbitant fees.
What You Need To Know
Personal injury cases take many months to settle. Sometimes it can take more than three years before you can get compensation. If you’re injured, waiting for many years will not do you any favors. It can hurt your financial wellbeing. Legal funding companies help you get some advance compensation to hold on to the best compensation possible.
