3 Misconceptions that Can Keep You from Fast and Easy Funding of Legal Claims
With lawsuits, and personal injury claims at an all time high, it seems that in society today, litigation is the preferred method of handling disputes. And while it has certainly curtailed random acts of violence, and out a judge and jury at the helm of the individuals grievances, a personal injury claim isn’t easy on either party, and whether you get a wrongful death settlement, a medical malpractice settlement or a million dollars in damages, there are usually injuries and deaths of loved ones to contend with. However, with the influx in personal injury claims, it has given rise to a new facet of our economy within the legal world, as there are more residual, side businesses popping up to support legal issues than ever before. One such field has got to be legal funding or litigation funding, the process by which individuals who can’t afford to file a lawsuit, pay for a lawyer, or need money to pay for other issues and daily things during their lawsuit, can get the financial help they need. The fact is that with the right case, an individual can get fast and easy funding for their legal claims in under 24 hours, and with that money they can continue their legal battle and pay legal fees, or get surgical funding for an injury they might have incurred during an accident. The idea of litigation funding is that in that in the event of some kind of settlement you would be given money in advance, whether that be a medical malpractice settlement, a wrongful death settlement, or any other type of personal injury settlement. This is quite the valuable service, and while lending services can pop up in all different fields and areas, the fact is that litigation funding is a bit more vital and trustworthy than those others. However, despite its importance, many tend to group this service into a similar category of cash advanced on a credit card or certain pay-day loan scams – this couldn’t be farther from the truth. To better help you understand the legal funding process, here are a few of the most common misconceptions out there today.
· Legal Funding is Just a Loan
As far as these litigation funding myths go, this isn’t one of the worst ones, and its actually relatively understandable, as it is somewhat true. However, litigation funding or surgical funding, whatever it might be used for, isn’t just a cut dry loan – as individuals can also take out certain lawsuit loans as well. The biggest difference however is that a loan must begin to be repaid relatively soon after it is taken, in addition, there are high interest fees and this will often lead to mounting, crippling debt that can take years to pay off. Often, before legal funding people used to turn to conventional bank loans and credit cards, leaving them in debt for years. However, with legal funding client submits an application to a funder and, if approved, the client receives a cash advance. After receiving the cash advance, there are no payments of any kind until the case settles, which could be months or years away. Plus, depending on the understanding of your funding, in certain cases, for instance of a medical malpractice settlement that is simply never paid or a wrongful death settlement that might be overturned on appeal, the individual’s obligation to repay the funding might disappear altogether. Again, this is dependent upon the specifics of your case, and your legal funding deal made with the company.
· Legal Funding Can Hurt Your Case
This is definitely one of the most outrageous myths or misconceptions out there, but we have certainly heard it more than a few times. The fact is that when it comes to legal funding, lawsuit funding, surgical funding – any type of funding that contributes to your personal injury claim and your receiving a personal injury settlement, it is a huge benefit to your case, as it gives you the capital needed to pay lawyers, hire experts, and live your life while you are fighting through a case.
· Legal Funding is an Unregulated Industry
This is something that is generally made by those who are uneducated or don’t keep up with legal funding and the legal system as a whole. In years past, when legal funding began, and was first introduced, it was definitely not as regulated, and was something that resembled more of a loan than anything else. However, over the years, as the industry has grown, it is becoming an increasingly regulated industry, with practices designed to protect the plaintiff’s best interests. ALFA, the industry’s trade association, is leading the way in establishing the highest standards and a set of business practice principles for the legal funding industry. In the past, ALFA worked alongside former New York’s former Attorney General Eliot Spitzer to establish certain specific types of practices for legal funding companies and fairly in-depth laws and regulations for how they must operate within New York State. This was groundbreaking and essentially stamped the industry within the legal world.
For more information on fast and easy funding, or to schedule an appointment to discuss your case or claim, be sure to contact Express Funding today.