Hiring a lawyer simply isn’t a cheap exercise. They charge an hourly rate and normally require a retainer to provide you with any of their services or to represent you in court. Never mind all the additional administration fees and other charges that may be required.
On top of this, most lawyers only take on a few pro bono (free) cases every year and these need to be well motivated in order for the lawyer to consider taking such cases on. The reality is that few people have the available funds to pay a lawyer upfront and then cover the costs as a case proceeds.
However, for those who are require services related to a civil lawsuit there are other options available.
This is where a lawyer will work for free on the contingency that they will claim a percentage of the settlement amount or the compensation that is awarded by a court of law. This can be highly profitable for the lawyer and can benefit a client who does not have the funds to retain a lawyer but a strong case against another party.
However, in the event that the case is unsuccessful where no settlement or compensation is awarded, the lawyer may still hold their client responsible for their fees. Whether the case is successful or not, additional charges for administration and court fees will still be for the client’s account.
- Lawsuit Funding
There are companies that provide funding for lawsuits similar to the contingency basis described above. It is not the same as taking out a loan that will need to be repaid on a monthly basis or when the case is settled. Rather, the funding provider will claim a portion of the settlement amount in order to cover their flat fee as well as the loan amount.
Unlike a contingency lawyer, http://legalcapitalcorp.com/ will not hold you responsible for the advanced funds should the claim or lawsuit be unsuccessful. The pre-settlement funding can be used to cover all legal costs including court and admin fees meaning that the client never has to pay for anything out of their own pocket.
The cash advance will also not accrue interest which is ideal for cases that are complicated and could take years to resolve in or out of court. Instead, a set fee is charged for this service. You will also not lose a portion of your settlement amount like you would with a contingency lawyer and only be required to pay the fee.
In addition, there are no restrictions placed on the legal representation that is required. In other words, you can choose any lawyer that you want to represent you.
Lawsuit funding is probably the most beneficial means of ensuring that you are able to cover the costs of a lawsuit. It has all the benefits of contingency without the pitfalls.
However, it is important to ensure that the amount that you are claiming will be able to cover the cost of the cash advance as well as the fee if a settlement is reached.