Understanding Lawsuit Funding: A Comprehensive Guide for Plaintiffs
Lawsuit funding, also known as litigation funding or legal financing, has become an invaluable resource for plaintiffs facing financial challenges during ongoing legal battles. This comprehensive guide aims to provide plaintiffs with a thorough understanding of litigation funding, including its benefits, considerations, and the legal landscape surrounding it. Litigation funding serves as a financial lifeline for plaintiffs. It is a non-recourse cash advance provided by a third-party funding company, typically based on the potential outcome of the lawsuit. Unlike traditional loans, litigation funding is not repaid if the plaintiff loses the case. Instead, repayment is contingent upon a successful settlement or verdict. The funding can be used to cover various expenses, such as legal fees, medical bills, living expenses, and other costs associated with the litigation process. Litigation funding helps plaintiffs meet their immediate financial needs, reducing stress and allowing them to fo