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  27 March 2018

  Are You Qualified For Legal Funding ?

  Are You Qualified For Legal Funding ?

  Personal Injury Lawsuit Funding After Jennifer fell at her local Walmart she needed to cover her critical living expenses for her and her daughter. Although all of her coworkers have chipped in, money is getting tight. To add insult to injury, her lawyer is precluded by the American Bar Association (ABA) from lending her money. Out on unpaid leave and unable to work she turns to legal funding to get her and her daughter through. The advance that she receives is used to pay for their rent, food and other expense until Jennifer gets back on her feet. Needless to say, they could have ended up in a much worse situation. Jennifer is not alone, however. Every year, millions of Americans are injured due to the negligence of others. Whereas in the near past a situation like this could have spelled financial ruin, today that is simply not the case. Qualifying for Lawsuit Funding Qualifying for legal funding is simple. To be eligible, the plaintiff who resides in state where lawsuit funding is available, must have:

  • a viable personal injury claim with merit,
  • be represented by an attorney on a contingency fee basis; and,
  • the defendant must have the ability to pay damages (i.e. insurance).

    Once these minimal criteria are met the applicant can be considered for legal funding. With those pre-qualification criteria having been met, there are several more qualifiers that come into play. These are:

  • Damages
  • Liability
  • Ability to Pay
  • Attorney on Contingency Fee
  • Sufficient Margin for Investment

   

  • Damages: In the main, these are normally severe injuries that require time off of work. However, more and more, legal funding companies have now begun to give more weight to “soft tissue” injuries such as sprains.
  • Liability: It must be clear from the legal funder’s perspective that the defendant has a strong liability for causing the damage. In other words, it must be clear that the defendant is at fault.
  • Ability to Pay: In a typical personal injury advance the defendant must have the ability to pay. That means that the defendant must have insurance coverage or other means to pay.
  • Sufficient Investment Margins: When a legal funding company decides whether to give you an advance on the case, they weigh what other expenses will be paid out by the proceeds of your settlement. They may check public records to see if there are any other liens or encumbrances against it.

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  20 March 2018

  The Lawsuit Funding Process

  The Lawsuit Funding Process

  In understanding and dealing with legal funding, it is important to recognize the parties involved in the field. The key players in the mechanism and process of legal funding are the clients, the brokers, the underwriters and the lawyers. These key players and their attendant roles in the legal funding mix will be addressed from the vantage of personal injury legal funding.     (more…)

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