Litigation Financing and Your Attorney Can Mean a Better Outcome for You

The most important decision a plaintiff must make is selecting an attorney. A capable attorney will gather all the evidence needed to prosecute the plaintiff’s case, he or she will advise his plaintiff of his or her legal rights, and will work to get the best possible settlement for the injuries and losses the plaintiff suffered. A capable attorney will ensure the best possible outcome for a plaintiff, but plaintiffs need more than an attorney to prevail in their legal claim: They often also need the right financing in order to have financial support while they await their settlement.

The second most important decision plaintiffs make about a case may have to do with litigation financing. Lawsuit advances offer plaintiffs the money they need to maintain their lifestyles while they wait for their attorneys to do their jobs. Even with the best possible attorney, a case can take months or even years to settle. In fact, some defendants may delay a case for months or years, hoping that a plaintiff will abandon the case or accept a lowball offer. In the meantime, the plaintiff is left without a settlement and without any cash to pay necessary bills, medical treatments and other expenses. Legal financing takes care of this problem by offering up-front cash that can help the plaintiff survive financially.

A plaintiff’s attorney and a lawsuit advance can work hand-in-hand to bring about the best results. While a plaintiff’s attorney is working the lawsuit through the legal system, the lawsuit advance allows the plaintiff to pay everyday living expenses. Without legal financing, a plaintiff may be left with penalties on late bills, increased interest costs, ruined credit, and even repossession of assets such as homes and cars. Legal financing can help safeguard the plaintiff’s assets and lifestyle while the plaintiff's attorney works for a fair settlement offer.

Legal advances also protect plaintiffs: If the plaintiff does not win his or her case or reach an out-of-court settlement, the plaintiff had the use of the lawsuit advance funds, but does not have to repay the advance! Just as most personal injury attorneys work on a contingency basis, ensuring that plaintiffs can seek legal redress for wrongs without having to worry about paying huge legal costs up front, so Litigation Financing offers plaintiffs the ability to pay their immediate bills without having to worry about enormous debts after the trial. If a plaintiff wins the case or settles out of court, both the attorney and the legal financing provider are paid from the proceeds of their settlement. If they lose or abandon their case, plaintiffs will not be in debt to their attorneys or legal finance providers.

Litigation Financing also helps keep plaintiffs from accepting lowball offers from defendants. In many cases, defendants are able to get plaintiffs to accept offers that are far from fair simply because the plaintiffs are in need of cash. In many cases, these low offers are made just to see whether the plaintiff is desperate enough to take the money. There is no downside for a defendant to make a lowball offer. A plaintiff who is in financial need will find a lowball offer difficult to resist. In effect, their judgment will be impaired by their need for cash to pay pressing bills. In many cases, a lowball offer may only represent 10 to 15% of what can actually be achieved if the plaintiff and attorney hang tough and aggressively pursue the claim. Legal financing, therefore, can be an essential way to a truly fair settlement or verdict in court!