Legal Funding

Legal funding is a financial tool that provides money to plaintiffs and attorneys. Legal funding is a term that is used when describing the process of obtaining money against a personal injury  lawsuit or commercial claim. A plaintiff is the individual bringing action against the defense receives money before, during or after a lawsuit is settled.  When a person secures legal funding they will agree to pay back the monies borrowed only if they win the case. Legal funding can also be secured by the purchase of a structured settlement annuity. These annuities can be purchased through a partial or full buyout of future payments.

Over the last 10 years legal funding has gained enormous popularity amongst plaintiffs throughout the United States. This is a direct result of tough economic times and skyrocketing unemployment rates. A person may apply for legal funding to help supplement a lost income and to pay for living expenses until a suitable and fair settlement is reached. There are other plaintiffs that secure legal funding as a safety net to an unfavorable ruling. LawLeaf provides several different types of legal funding types for clients throughout the United States.

Legal Funding Types

Pre settlement legal funding is the most popular amongst plaintiffs. This form of legal funding is borrowed against personal injury and commercial litigation claims. The money is always secured before a settlement or verdict. Because there is a higher threshold of risk, the rates are generally higher. This is because legal funding is offered on a non-recourse basis which means a company does not receive payment unless the plaintiff agrees on a settlement or wins a judgment.

Post settlement legal funding is commonly used by those individuals that have immediate financial needs. Unlike pre settlement, post settlement is borrowed against a recent settlement or judgment. When a person receives a favorable ruling they may wait weeks or months before compensation is received. They now have an option to pull money from the expected recovery through post settlement legal funding. Because there is a lower threshold of risk, the rates are generally lower.

When a person wins a settlement or judgment against a lawsuit they can opt to receive compensation through a lump sum or structured settlement annuity. If a person decides to receive their payments through an annuity they have an option of selling off their payments at a later date. Structured settlement legal funding provides a client with immediate cash flow. If a person decides to secure legal funding against an annuity they will sign over the payments to a lender.

Legal funding for law firms is becoming extremely popular amongst attorneys throughout the United States. A law firm can secure legal funding against personal injury cases and commercial litigation cases. The money is oftentimes used for operating expenses and litigation costs. A law firm can secure legal funding against a single case or portfolio of cases.

The number of plaintiffs applying for legal funding is rapidly increasing. Legal funding has become overwhelmingly popular over the last several years because of financial hardships and the unwillingness of insurance companies providing respectable offers to accident victims. There is no questions that many Americans are financially strapped and many have depleted their investments and savings. When a person is going through the litigation process and considering settling the case due to a financial hardship, legal funding could be a better option.

LawLeaf is a leading provider of legal funding services throughout the United States. We have gained the reputation of offering some of the most competitive rates and fastest approvals within the legal funding industry. If you are currently seeking lawsuit funding, begin by applying online with LawLeaf.

LawLeaf provides a variety of different legal funding options for all types of personal injury related cases:

We provide legal funding services for the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming and the District of Columbia D.C.