Lawsuit Financing Options

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Lawsuit Financing Options

Most people are aware that the cost of hiring legal representation can be rather steep. Charges accrue by the tenth of the minute in most law firms, and quickly reach hundreds to tens of thousands of dollars or more. When the news gives an account of a spectacular lawsuit settlement in the hundreds of thousands of dollars, a common comment may be that the lawyers get most of it. In fact, most lawyers and law firms will get a substantial portion of an award or settlement. Typical costs might be in the 40% to 60% range for a personal injury lawsuit.

For the client, lawsuit financing options are available, including the following:

1. Consignment basis - legal fees, other than some small out-of-pocket costs, are only paid if and when the case is won and when an award or settlement money is received by the client.

2. Payment plan - client pays a small amount in advance, and makes regular payments during the course of the action.

3. Lawsuit funding companies - these are companies who operate similar to a cash advance company to provide advance funding to persons who are involved in a lawsuit that requires up front payment.

4. Free legal help from local Legal Aid office or Law School - investigate this possibility if you have no financial resources.

   

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