Funding has always been a great distress for a lot of lawyers, especially those who are taking a solo path on their careers. Litigation funding is one way to take care of it.
Litigation funding is known for a lot of names: legal financing, settlement funding, third party funding, and professional funding. This type of financing enables another company to take care of the litigation expenses in exchange for a few percent share upon settlement or judgment. This mechanism is currently common in a lot of law jurisdictions.
Litigation funding is usually confused with loans. On the outer surface, it does seem like it but unlike loans, you do not have to repay this kind of debt when the case ends as unsuccessful.
When should a solo lawyer consider in getting a litigation funding though?
- Some cases take years to settle. Litigation funding will help prevent financial disasters.
- Get litigation funding if the litigant needs to support somebody during the duration of the case. Litigation funding could help support a child or pay a kid to go to college.
- Litigation funding is mostly encouraged if the litigant needs to improve his health by getting medical procedures to prolong his life.
- Litigation funding is an option for litigants who do cannot get loans due to bad credit.
- Litigation funding is open for a lot of people, which means that if a solo lawyer is open for this kind of financing; he has more chances of getting more clients. In addition, more clients mean more cases. More cases to win increase a solo lawyer’s chance to be known in the field.
A lot of people are engaging in litigation funding to help them in their lawsuit troubles. However, a lot of solo lawyers get more pressure in terms of confidentiality and privileges but a lot of courts have been considering litigation funding because it encourages more justice.