A fairly new industry that is cropped up in the United States is the legal financing industry. It has become an industry mainstay during the last two decades. In the beginning, the legal financing industry was primarily unregulated. This situation, unfortunately, caused some companies to take advantage, and as a result, there were quite a few people in the legal field who had serious doubts about the true benefits that the legal financing industry promoted. The good news, however, is that recently there have been more safeguards and regulations added to this industry. The safeguards and regulations have been put in place to provide extra protection for any client of the legal financing companies.
In 2004, the American Legal Financing Association was introduced and established. The Association’s mandate was to maintain and provide high ethical standards and business practices that were fair for all legal financing procedures. It was not mandatory to have membership in this Association, but there was a total of 31 companies that became members. The Association always has and will continue to represent the members of any legal financing company so that any information about the industry is accurately disseminated. The Association will also try to guarantee that the legal financing industry performs all of the needs for any parties that are involved or for any parties that are interested.
In a nutshell, the legal financing industry will offer non-recourse types of legal financing to any litigant. The financing can be either funded from an individual lawyers finances or from somewhere outside of the firm. These funds are then processed through a third-party company. The various financings are often used for worker’s compensation, civil rights, or personal injuries.
The legal financing industry will provide a litigant with an upfront lump sum of cash in exchange for a portion of the litigants future trial award or settlement. Some legal trial cases can take a long time before they conclude and therefore this upfront cash can help to alleviate the litigant’s financial burdens. Some of these burdens may include things such as educational bills, legal fees, daily expenses, mortgage payments, rent, medicals bills, and so forth.
Many companies which provide legal funding have a goal to help their clients see how beneficial legal financing can be. As mentioned previously, legal financing is very advantageous for both personal injury lawyers and personal injury victims. From its beginning, legal financing has had its fair share of skeptics, but as time goes on, there are more and more professionals in the legal community who are realizing how prevalent this type of financing can be.
If you are about to deal with a legal financing company, it is important to choose one that has a good reputation and that has been in business for a long period. Most legal financing companies do not require the litigant to have a credit check or current employment. Their only criteria for funding is for the litigant to have a pending, bona fide lawsuit and financial need that is serious. Since this type of funding is based on a non-recourse format, it is important to note that if the litigant loses their case then they will not have any obligation to pay back the financing.
Litigants will be happy to know that it is easy to apply for this type of financial assistance. You can either call the company or fill out an application online. If the company approves your application, then you will likely have your funds released in as little as 24 hours. The process is simple and easy to understand.
One legal financing company that has an online service will provide funds for people thr oughout the United States. They claim to have adequate funds on hand so that you can receive them promptly when needed. They also claim to have the lowest rates of other loan service providers. The company has a reputation for providing financial assistance to companies, individuals, and attorneys who have used up all of their resources as they wait for a fair settlement. Their company motto is to provide relief to litigants who are finding it extremely difficult to maintain their day-to-day expenses.