How Litigation Funding Companies Support Complex Legal Cases

August 20, 2024

Litigation Funding

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.

Perhaps your neighbor’s dog bit you or you were involved in a complicated motor vehicle accident with multiple cars. You thought you had a slam-dunk case, but after months of litigation, you’re still not any closer to compensation. If you need a quick cash infusion to keep your case going, consider litigation funding.

What Is Litigation Funding?

Litigation funding allows a funder to invest in a lawsuit in exchange for a portion of the settlement or judgment. It’s commonly used by businesses and law firms, but individuals can take advantage of lawsuit funding, too.

Businesses can use litigation funding to:

Fund arbitration claims
Eliminate risk
Turn unenforced judgments into cash

Law firms use legal funding to:

Offer financing for hourly clients
Pursue high-value growth areas

Lawsuit funding offers quite a few perks for individuals as well. Here are the benefits:

You’ll gain quick access to cash instead of waiting for your settlement check to arrive.
There is no interest or monthly fees. Legal funding is non-recourse, meaning you don’t owe a penny until after your case settles.
No credit check is required. You can qualify for litigation funding even with a thin or poor credit history.
You can use the funding for anything you want or need. We place no restrictions on what you do with the money.

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Why Lawsuit Funding Is a Must for Complex Legal Cases

If your legal case is simple and settles quickly, you probably won’t need litigation funding. But if your case is very complex, you may need legal funding to help tide you over. Here’s why.

Lawsuits Are Expensive

It may go without saying, but lawsuits can be incredibly costly. Attorney fees in personal injury cases can cost hundreds of dollars per hour, and the longer your case drags on, the more you’ll have to pay.

You’ll also have to worry about court fees. These fees aren’t cheap, and they can add up quickly.

With litigation funding, you can rest easy knowing you have enough cash for legal fees and court costs.

Litigation Funding Allows You To Pay for the Necessities

Suppose you were involved in a serious car crash, and now you’re laid up at home, unable to work. You’ll almost surely end up with a settlement, but in the meantime, you have medical bills to pay, and they keep mounting. Maybe you’ve missed a couple of credit card payments, and now debt collectors are making your phone ring off the hook.

Litigation funding helps you keep these financial woes at bay in the middle of a complex legal case. You can use your funding to pay for:

Medical expenses
Debt, such as credit card bills and student loans
Groceries and household supplies
Utility bills

Litigation Timelines Can Be Lengthy

A simple car accident case might settle in a month or less if you’re lucky. But if your case is complicated or liability is unclear, your case could drag on for months or even well over a year.

Cases involving commercial defendants can be especially lengthy. Trucking companies, for example, have teams of lawyers and deep pockets, so they can afford to drag things out in court for a long time. Individuals like you will run out of money long before that big trucking company does.

Thanks to litigation funding, you don’t have to worry about running out of cash during a lengthy lawsuit. That means you’ll be less tempted to accept a low settlement that doesn’t cover all of your damages.

Filing a Lawsuit Carries Risk

Even if you think you have a rock-solid case, there’s always an element of risk in any lawsuit. Because litigation funding is an investment in your case, it essentially eliminates risk on your part. We take on the burden of risk for you, so all you have to do is focus on winning your case.

What Types of Cases Can You Use Legal Funding For?

Legal funding is ideal for a variety of personal injury cases. We offer litigation funding for accident injury cases such as:

Auto accidents
Bicycle accidents
Pedestrian accidents
Premises liability accidents
Catastrophic injuries and wrongful death

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How Do You Qualify for Litigation Funding?

To qualify for litigation funding, you’ll need to meet a few basic requirements. These include:

You must have a valid case type.
You must have a pending lawsuit.
You must have retained the services of an attorney.

If you’re not sure whether you are eligible, reach out to Rockpoint Legal Funding now.

Get The Money You Need Now With Legal Funding. Apply Today

Litigation Funding vs. Lawsuit Loans

You may have seen litigation funding referred to as a “lawsuit loan,” but these terms do not mean the same thing. Litigation funding is a cash advance on your settlement, while a lawsuit loan is more akin to a traditional loan. Unlike with litigation funding, if you opt for a lawsuit loan, you’ll have to make monthly payments, plus interest.

Lawsuit loans provide fast cash, but they can cost you a lot of money, too. Other drawbacks include:

Lawsuit loans aren’t available for all types of cases.
Lawsuit loans aren’t regulated like other types of loans.
It’s difficult to find a reputable lender.

In short, litigation funding is almost always the better choice.

Need Funding for a Complex Legal Case? Contact Us Today

Are you interested in applying for legal funding or want to learn how litigation funding protects plaintiffs from debt? Contact Rockpoint Legal Funding at (855) 582-9200 for a free consultation to learn whether you may qualify.