What Information Do I Need for Lawsuit Funding?

May 13, 2010

What Information Do I Need for Lawsuit Funding?

It can seem sometimes that the legal system has been designed not to allow each of us the chance to have our say in court but to keep lawyers busy. It is a world onto itself, full of twists, turns, delays, and other snags that can be very difficult for the layperson to navigate successfully. Not only can the process itself be convoluted, the financial aspects of pursuing legal action can be excruciating. Lawsuit funding may be the only way that you can afford to be able to pursue legal action. What information do you need before you take that route?

There is a bit of research you need to do before deciding on lawsuit funding. Before you even decide if it is right for you, know the following:

  • Lawsuit funding is not a “no-cost loan,” as some companies claim. It is an advance on your settlement designed to help you cover pressing financial costs during a lawsuit.
  • You should opt for a company which provides “no recourse” funding, which means that if your case is unsuccessful, you don’t need to repay the advance. If you win, however, you will repay the advance with interest.
  • This is a last resort. Bank loans or loans from family or friends will be less expensive, but if they’re not open to you, lawsuit funding may be your only option.
  • A lawsuit funding company does not provide any legal counsel or advice, simply the money to help you pay for living expenses.

If you do not have the money to wait for a settlement but are not willing to settle for less than your case is worth, lawsuit funding may be the only way you can pursue this line of action. If you do decide that this is right for you, you will need to have your case information ready for the funding company to review. For any time of case, your attorney will need to provide a copy of the lawsuit if one has been filed. Depending on the specific type of case you will be bringing, you will need to have the proper documentation, which may include the following:

  • Police reports or witness statements if a police report wasn’t taken.
  • Accident and/or incident reports.
  • Photos.
  • Medical reports or records.
  • Defendant’s insurance information
  • Expert reports
  • Workman’s compensation petition.
If your case has been settled, you will need a letter from your attorney which states the amount of your settlement, as well as the amount of liens, fees, and other expenses against the case. Be prepared with these documents, as well as any other that will substantiate and strengthen your case.

Before you make your final decision, make sure you also obtain essential information from your funding company. Among the most important considerations:

  • Do they provide no-recourse funding?
  • What are their interest rates and/or any fees?
  • What are your obligations in regards to the advance? What are theirs?
  •  When will you be able to get your money?
There is a lot to know before you decide to take advantage of legal funding. It is important to take the time to gather information about lawsuit funding in general, your company in specific, and the information you will need regarding your case. A little preparation will go a long way in ensuring this part of the legal maze is a little easier to navigate.