Category:Lawsuit Funding

Lawsuit funding has become popular amongst plaintiffs & attorneys. Several years ago lawsuit funding was only allowed in certain states and most recently a plaintiff or attorney may now secure lawsuit funding in all 50 states throughout the U.S.

When a person decides to secure lawsuit funding for a legal case they can do so from through a financial legal company. Unlike a standard bank loan, lawsuit funding oftentimes comes as non recourse meaning you only repay the lender if you win compensation for your case.

The four common types of lawsuit funding include:

Pre settlement funding - This is an advance to a plaintiff before a case has reached a settlement. A pre settlement advance is used to help pay for expenses while a case is reaching a settlement. This type of advance can also help an attorney buy more time during the litigation process and oftentimes can result in higher payouts to the plaintiff. Pre settlement funding is usually called a settlement loan or personal injury funding.

Structured Settlement Buyouts - When a plaintiff has decided to take compensation over a certain period of time rather than a lump sum its called a "structured settlement." When a plaintiff secures a structured settlement they may have the option to sell part or the full buyout at a later time.

Commercial Litigation Funding - This is a case against a company. A lawsuit can be filed both by a company or individual. Similar to pre settlement funding, commercial litigation financing can be paid prior to a case reaches a settlement.

Attorney Funding - When an attorney seeks financial backing during or after the litigation process they may do so as well. Attorney funding can be both non recourse or a regular loan. This type of funding is typically loaned against future compensations from active lawsuits.

Lawsuit funding is becoming much more popular over the last several years due to hard financial times.