question.jpgIn Personal Injury Law

How do I fund my lawsuit?

One of the newer trends in lawsuit funding is to use a lawsuit funding company to provide the resources you need to fund your personal injury lawsuit. Many people who are victims of personal injury simply are not in the appropriate financial situation to cover the expenses of hiring a good attorney and/or taking the case to trial, which can often lead to huge attorneys’ fees. Because of this need, the lawsuit funding industry has flourished of late, both for the good and the bad of the individual plaintiff. Lawsuit funding companies basically loan you the money you need to finance a lawsuit in exchange for part of your future settlement - and, in nearly all cases, this is done through a non-recourse loan, which is a loan you only have to pay back in the event that you win your personal injury case. However, there are certain risks involved in cases of this variety, so lawsuit funding companies often charge a very high fee for the services, often 10 to 15 percent of your winnings, in addition to repaying the loan. So, it is often wise to look elsewhere for resources to fund your lawsuit; funding companies should generally be a last resort.