You might have some questions about litigation funding.
Like, is it a good or bad thing? Does it help or hurt the people involved in a lawsuit? Is it expensive?
You’re not alone in wondering these things. A lot of people don’t really understand how litigation funding works and what it can do for someone involved in a lawsuit.
That’s why we’re debunking some of the common myths about litigation funding.
Myth 1: Litigation Funding Is Only for Desperate People
One of the most prevalent misunderstandings about litigation funding is that it’s only for people who are desperate and have no other options.
This simply isn’t true. While it’s true that many people who seek out litigation funding are in difficult financial situations, this isn’t always the case. People of all different financial backgrounds seek out litigation funding for a variety of reasons.
Myth 2: Litigation Funding Is Only for Personal Injury Cases
Another common myth about litigation funding is that it’s only for personal injury cases. This also isn’t true.
While personal injury cases are the most frequent type of case to receive litigation funding, there are many other types of cases that can qualify. Litigation funding is available for all sorts of civil cases, including business disputes, employment disputes, and more.
Myth 3: Litigation Funding Is Only for Contingency Cases
Contingency fee arrangements are very common in the legal world, but that doesn’t mean that all cases are contingency cases.
In fact, many litigation funders are willing to provide funding for cases that are not on a contingency basis. This means that you can still receive funding even if you’re not working on a contingency basis with your lawyer.
Myth 4: Litigation Funding Is Only for People Who Have Good Cases
This myth is perpetuated by the legal industry because they don’t want people to seek out litigation funding. The truth is, however, that anyone can seek out litigation funding regardless of the strength of their case.
A commercial litigation funder will evaluate your case and decide whether or not it is worth funding. Even if your case is not strong, you may still be able to receive funding.
Myth 5: Litigation Funding Is Only for People Who Have a Lot of Money
Another common myth about litigation funding is that it’s only for people who have a lot of money. This simply isn’t true.
While there are some funders who only work with people who have a lot of money, there are many other funders who are willing to work with people of all different financial backgrounds.
Myth 6: Litigation Funding Is Only for People Who Have Good Credit
This is another myth that is perpetuated by the legal industry. The truth is, however, that anyone can seek out litigation funding regardless of their credit score. There are many funders who are willing to work with people of all different credit scores.
Myth 7: Litigation Funding Is Expensive
This is probably the most typical myth about litigation funding. People often think that litigation funding is expensive because they don’t understand how it works. The truth is, however, that litigation funding is not expensive. In fact, it’s often one of the most affordable options for people who are involved in a lawsuit.
Conclusion
Litigation funding is a great option for people who are involved in a lawsuit. It can help with the financial burden of a lawsuit, and it can give you the money you need to continue pursuing your case.
If you’re involved in a lawsuit, and you’re considering litigation funding, don’t let these myths stop you from exploring your options. Litigation funding can be a great way to get the financial support you need to pursue your case. If you’re considering litigation funding, be sure to do your research and choose a reputable funder.
