Litigation Funding offers financial resources to plaintiffs that are the victims of personal injury by the negligent acts of another. It is simple reality in the United States legal system that financial strength plays a significant role in the ultimate settlement or judgment amount of legal claims. Fortunately there are litigation funding companies that offer funding services to Plaintiffs which can help level the playing field with deep pocketed defendants.

Litigation Funding is offered to plaintiffs with a legitimate legal claim, however, there are no credit checks or income verifications. The funding company advances cash to the Plaintiff in return for a portion of their potential legal claim proceeds. If the legal claim is successful then the litigation funding company receives their capital back plus fees, however, if the case is lost for any reason, the plaintiff keeps the money without obligation to repay the funding company. This type of contingent advance is not a loan but rather an investment which is speculative and repayable only upon some unknown and contingent event. In fact, it is very similar to the fee that a Personal Injury attorney charges its clients.

It is clear that large insurance carriers for defendants in personal injury cases will make low ball offers to see how desperate a plaintiff may be. They are using their financial superiority in hopes of achieving a settlement amount that is lower than the ultimate value of the plaintiffs claim. It seems to be a game of cat and mouse in which the cat represents the defendants insurance carrier and the mouse represents plaintiff.

It is important to note that Litigation Funding can be considered as a form of insurance against a potential loss in the legal claim. In other words, the plaintiff receives a financial guarantee that they will receive a financial recovery regardless of the outcome of the legal claim. If there is no financial recovery from the legal claim then the plaintiff will still obtain a financial recovery from the claim by keeping the cash advance received from the litigation funding company without obligation to repay any amount. If, however, the legal claim is successful, the plaintiff is only obligated to repay the cash advance they received plus fees. Regardless of the outcome, a plaintiff is guaranteed a financial recovery and that is assurance or insurance no matter how you look at it.