In essence, third-party litigation funding enables individuals, such as victims of personal injury or businesses involved in complex litigation, to bring their cases to court without the stress of upfront legal fees. The funder assumes the financial risk by covering all or part of the legal expenses, and in return, they receive a percentage of the settlement or judgment if the case is victorious. If the lawsuit does not result in a favorable outcome, the funder absorbs some of the financial losses, alleviating the burden on the plaintiff.
Benefits of Third Party Litigation Funding
For those contemplating a personal injury claim or any litigation, partnering with a third-party funder can provide several significant advantages:
- Reducing Financial Risk: Engaging in a lawsuit can be expensive, and third-party funding mitigates the financial risks associated with the legal process.
- Cost Transfer: By utilizing a third-party funder, plaintiffs can transfer some or all of the costs associated with pursuing their claims, allowing them to focus on their case rather than financial concerns.
- Pursuing Justice: Third-party funding empowers individuals to pursue claims they might otherwise abandon due to lack of resources, ensuring they can seek full justice for the damages caused by another party’s negligence.
After a personal injury incident, victims often face overwhelming medical bills, repair costs, and various other expenses. Third-party funding can provide crucial cash advancements to help these individuals navigate the financial aftermath. Unlike a traditional loan, third-party funding is not considered debt in the conventional sense; thus, it does not impact the plaintiff’s credit score nor is it reported to credit bureaus.
Eligibility for Third-Party Litigation Funding
While third-party funding offers substantial benefits, it does involve risks for the funders. As a result, funding companies conduct thorough due diligence to determine the viability of funding a case. Factors that influence eligibility include:
- Case Success Potential: The likelihood of success in the case and the anticipated size of the settlement are critical considerations for funders.
- Experience of Legal Counsel: The expertise and track record of the plaintiff’s attorney play a significant role in the funding decision.
- Defendant’s Financial Standing: The financial capacity of the defendant to pay a settlement amount is evaluated to ensure that the case is worth pursuing.
- Nature of the Case: Different types of cases have varying potential for damages, which can influence a funder’s decision.
- Personal Background: The personal circumstances of the plaintiff may also be considered as part of the funding evaluation process.
Consult with Etemi Law for Your Legal Options
If you have been injured due to someone else’s negligence and are exploring your options for financial recovery, Etemi Law is here to help. Our experienced team understands the complexities of personal injury cases and can guide you through the litigation funding process.
We offer a FREE consultation to discuss your legal options and address any concerns you may have. To schedule your free consultation, please call us at (203) 409-8424 or fill out the contact form on our website. Don’t let financial concerns prevent you from seeking the justice you deserve.
