When you’re involved in a personal injury lawsuit as the plaintiff, there are likely several things on your mind. You have to think about your medical care to get back to full health, the attorney’s fees and court costs, and the ongoing expenses such as housing and groceries—even though you may not be able to work due to your injury.
It’s natural to think of everything in terms of a light at the end of the tunnel: winning your settlement. You may find yourself saying, “Once I have the settlement money, everything will be okay.”
Unfortunately, many people can’t afford to take their cases to the finish line—and that’s exactly what the defendant is hoping for. Read on to learn how litigation funding can help clients before the case settles.
How Does Litigation Funding Work?
The concept of litigation funding (or pre-settlement funding) is simple: instead of waiting until you win your case, a litigation funder gives you a kind of advance on your settlement. You get money while the case is happening rather than after you win it. When you do settle, you pay the funder back for what they lent, and the rest of the money is yours.
Many people assume that the money comes with strings attached, but that’s not true. Once the funder approves your application and transfers the money to you, it’s yours to do with as you please. You can use it to pay court costs, attorney’s fees, medical bills, or even your rent or grocery bills.
The Difference Between Litigation Funding and a Personal Loan
Traditional personal loans come with significant risks—if you take out a loan, head to the casino, and lose all your money, you’re still obligated to repay your loan, plus interest. Litigation funding doesn’t work the same way. Litigation funding firms understand the position you’re in—medical bills and legal fees are expensive, so you may not be able to afford to pay them back unless you win your case.
That’s why litigation funding is a non-recourse loan, which means if you don’t win, you don’t repay. That’s right—if a litigation funding firm reviews your application and transfers money to you, the only situation where you’re obligated to pay it back is if you win your case. In other words, you need to repay only if you’ve won the money to repay. There will be no scary moment when you’re forced to take out a second mortgage on your home—just pull the funds out of your awarded settlement, and you’re all set.
The Application Process
If that all sounds a little too good to be true, we’re just getting started. So many application processes require application fees or take months to process, but that’s not the case with litigation funding. In most cases, you can apply for free, and the firm will get back to you in as few as 24 hours.
Whereas you may qualify for a credit card if you’ve proven your creditworthiness in the past, a successful litigation funding application looks a little different. The most important factor is the strength of your case. A litigation funder wants to ensure that, in all likelihood, your case will win before they transfer money to you. The firm will have a team review the case and estimate its solidity and potential return.
Every lawsuit is a risk, no matter how strong of a case you think you have. There’s a reason why massive corporations throw money at excellent lawyers to defend them, even if they’re guilty: sometimes, the guilty people win. That’s why employing risk management techniques is essential.
Personal injury lawsuit funding is a prime example of risk management—once you secure your funding, the risk is entirely lifted off your shoulders. If you win, you simply need to repay your funder from the settlement money. If you lose, however, you’re free and clear. The funder will not require you to repay them, and you will have already paid medical bills and legal fees with the advance they transferred to you.
Fast Access To Funds
Everything surrounding personal injury lawsuits is expensive. Attorney’s fees, court costs, and medical bills can easily cost tens of thousands of dollars, if not more. Most people simply don’t have the money to pay for those things in perpetuity, but they’re all essential for winning a case. Litigation funding offers you the chance to access cash when you need it most to keep your lawsuit afloat.
A Level Playing Field
Giant corporations and rich defendants have had a ton of success in the last century with throwing money at lawsuits until the plaintiffs couldn’t afford to keep up. Those cases left the plaintiffs out tens of thousands of dollars with nothing to show for it—and the wealthy defendants got off scot-free. Litigation funding allows plaintiffs of any economic background to have a voice in our legal system.
We view litigation funding as a platform that provides equal access to justice to everyone in the country. If you were unjustly wronged, you shouldn’t need a seven-figure salary to win a lawsuit. Litigation funding puts everyone on the same level so that justice is the only thing that matters.
Affording the High Costs of Litigation
Going to court is an expensive proposition any way you look at it. You’ll need to take time off work to appear in court, and you’ll have to invest in a great legal team for the best chance of winning. However, these things are often impossible without financial aid.
That’s where funding firms such as Apogee Capital Partners come in. We can provide you with the capital you need to afford the best representation and to take as much time off work as necessary to appear in court and get the medical treatment you need.
Now that you know how litigation funding helps clients before their cases settle, talk to your lawyer about securing lawsuit funding. Lawyers should have experience with the process, and they can guide you through a successful application. If you don’t have a lawyer yet, find a reputable litigation funding firm—Apogee Capital Partners is happy to assist you and review your case.