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In today’s world, navigating a lawsuit can be financially overwhelming. Legal Funding, also known as lawsuit funding or pre-settlement funding, provides plaintiffs with the financial support they need during ongoing legal battles. Companies like Capital Legal Funding offer cash advances to individuals awaiting settlements, helping them cover essential expenses while pursuing justice.
What is Legal Funding?
Legal funding is a non-recourse cash advance provided to plaintiffs involved in lawsuits. Unlike traditional loans, legal funding does not require repayment if the case does not settle in favor of the plaintiff. Instead, the repayment comes directly from the settlement or judgment once the case concludes. This financial support can be crucial, especially for individuals facing mounting medical bills, lost wages, and other expenses related to their lawsuit.
Capital Legal Funding and other legal funding companies assess cases based on their potential settlement value. The amount a plaintiff receives depends on the case’s merits rather than credit history or employment status. This makes legal funding an accessible option for those who need financial assistance during litigation.
How Does Legal Funding Work?
Legal funding follows a straightforward process designed to provide quick financial relief to plaintiffs. Understanding how it works can help individuals make informed decisions about securing financial support during a lawsuit.
1. Application and Case Evaluation
The process begins with an application. Plaintiffs must provide details about their lawsuit, which a legal funding company reviews. Capital Legal Funding collaborates with attorneys to assess the case’s strength and potential settlement amount. Unlike traditional lending institutions, legal funding providers focus solely on the case rather than an applicant’s financial history.
2. Approval and Funding
Once the evaluation is complete, the funding company determines the cash advance amount. If approved, plaintiffs receive the funds quickly, often within 24 to 48 hours. This immediate financial assistance helps cover rent, medical expenses, and daily necessities while awaiting case resolution.
3. Repayment After Settlement
Repayment occurs only if the plaintiff wins or settles the case. The funding company collects the pre-agreed portion of the settlement directly from the proceeds. Since legal funding is non-recourse, plaintiffs owe nothing if they lose their case. This structure minimizes financial risk for individuals seeking assistance.
