How Legal Funding Can Change the Course of Your Case

Disclaimer: Consumer legal fundings and advances are not loans under applicable financing laws. Rockpoint’s products are non-recourse, meaning if you don’t win your case, you don’t have to pay us back. Receiving financial support in connection with a legal case is typically (and oftentimes incorrectly) referred to as a “lawsuit loan” or “loan.” Therefore, for the ease of search references, these terms may be used in this context to refer to our funding products, but we maintain our separateness from consumer loan products in all legal aspects. 

Even legal cases that seem simple at first glance can quickly turn into a war of attrition. If the other side tries to pin the blame on you and it’s not clear who is liable, your case could drag on for far longer than you expected. Legal funding is made for situations like these.

Below, Rockpoint Legal Funding Services explores legal funding benefits for your case.

What Is Legal Funding?

First things first, legal funding is not a loan in the typical sense. Both loans and legal funding provide upfront cash, but unlike a loan, you don’t have to pay back the amount you borrowed until after your case is over. Additionally, a credit check is never required for legal funding, so we can approve you even if your credit history is poor or spotty.

Legal funding provides a non-recourse cash advance on your settlement. You can use the money for anything: medical bills, rent or mortgage payments, credit card bills, groceries, hiring home care, and more.

Legal Funding Benefits for Your Case

If you’ve never heard of legal funding before, you might naturally be a bit wary. “It sounds too good to be true,” you may think. “Is there a catch?”

Not at all! Legal funding is straightforward and provides benefits for plaintiffs and attorneys alike. Here, we explore litigation funds and their impact.

Financial Relief for Plaintiffs and Attorneys

Litigation costs are expensive. What can you do if you’re faced with the choice of paying either your attorney’s fees or this month’s rent? Thanks to legal funding, you don’t have to make that tough call.

Think of legal funding as a lifeboat keeping you afloat in the middle of a churning sea. You can use the funding to cover your necessities while you wait for your case to settle. Our clients can use their funding for:

• Medical bills
• Groceries
• Mortgage and rent payments
• Credit card and student loan payments
• Car repairs
• Home modifications

Legal funding helps attorneys keep their firms in good shape, too. If you’re an attorney, you can’t pay the bills until you’ve won your case. Before that happens, you can rely on legal funding to cover things such as:

• Office rent
• Administrative costs
• Discovery fees
• Advertising
• Risk mitigation

Extends Your Case Longevity

If your case is fairly strong, you might expect it to settle in just a couple of months. Realistically, your case could drag on for six months to more than two years. Will you be able to afford two years’ worth of legal fees? What if you can’t work during that time?

Legal funding alleviates the worry that you’ll run out of money during your case.

Improved Settlement Outcomes and Client Empowerment

Because lawsuits can stretch on for so long, plaintiffs often feel pressured to accept a settlement that doesn’t reflect the true value of their case. This is unfortunate because the settlement may not be enough to cover their medical bills and ongoing care needs.

Thanks to legal funding, you won’t feel as though your only option is to accept a low settlement. You can hold out for a fair settlement that fully covers your damages, both economic and non-economic.

Better Client Satisfaction Rates

If you’re a lawyer, you know that reputation is everything. The better the settlement you can win for your client, the happier they’ll be. A happy client is more likely to leave you a good testimonial, making it easier to attract more clients.

Types of Legal Funding

There are two kinds of legal funding: pre-settlement and post-settlement funding. Both have legal funding benefits for plaintiffs and attorneys.

Pre-settlement funding is ideal for plaintiffs who need money before their case has been settled. Attorneys can use pre-settlement funding to pay for discovery fees, accident reconstruction, depositions, and travel. Having access to pre-settlement funding allows attorneys to build a stronger case.

Post-settlement funding comes into play after a plaintiff’s case settles, but before the court distributes their settlement. This can be useful in divorce cases to cover attorney fees and similar expenses but may differ across states, as who pays attorney fees for a divorce in Florida can be different from who pays in California, for example. Plaintiffs may opt for this funding if they have urgent expenses and can’t wait for their settlement. Attorneys can use this funding to keep their firms running while waiting for their legal fees.

The Non-Recourse Funding Process

 At Rockpoint Legal Funding, we make the funding process a snap for plaintiffs. Here’s how it works.

1. First, you’ll need to confirm that you meet our requirements. We don’t ask for collateral (aside from your settlement) or run a credit check, but we do require that you have a valid case type. We accept personal injury cases, such as medical malpractice, car accidents, dog attacks, slip-and-falls, etc.
2. You’ll need to retain an attorney to apply for funding with us. This is because we’ll work closely with your lawyer throughout the funding process, and your lawyer will pay us out of your settlement once your case is finished. You also have a better chance of winning your case with an attorney’s guidance.
3. Once you apply and we approve you, you’ll typically have access to your funds in 24 hours or less. You’re then free to spend the funds on anything you need.
4. You don’t have to pay us back until your case settles. After your case is over, we will take repayment as a percentage of your settlement.

Apply for Legal Funding Today

Now that you’ve learned about legal funding benefits, are you ready to apply for funding? Wondering how long until you get paid after a lawsuit? Contact Rockpoint Legal Funding at (855) 582-9200 for your free case evaluation.