California’s court system serves more than 40 million people—about 12.1 percent of the US population—and processed about 5.3 million cases in the fiscal year (FY) 2019–20. As a result, lawsuits are a big part of life in the Golden State.
If you’re involved in a lawsuit in California, you may be considering lawsuit funding to help cover your expenses. Lawsuit funding, also known as litigation financing or legal finance, is a cash advance that can give you the financial resources to stay afloat during a long legal battle.
Here are three things to know about lawsuit funding in California:
1) Can Help You Stay Afloat During a Long Legal Battle
According to reports, California has the most extended average trial length. In California, defendants have a right to a trial within 100 days to a year.
If you’re facing a legal battle in California, you could be looking at a lengthy and costly process.
Lawsuit funding can help you cover your living expenses and other costs while waiting for your case to settle. In addition, it can give you the financial stability to continue pursuing your case without worrying about how you’ll make ends meet.
Legal battles that involve a lengthy trial process can be financially devastating. Lawsuit funds can help you avoid financial ruin and gives you the means to continue fighting for the best outcome in your case.
2) Factors to Consider When Applying for Lawsuit Funding
Some of the crucial factors that will be considered when you apply for a loan against your case include:
The strength of your case– To qualify for lawsuit funding, you must have a strong case with a good chance of winning. The funding company will assess the merits of your claim to determine the likelihood of success before approving any loan.
Your financial need– The funding company will also consider your financial need when deciding whether or not to approve your loan. If you have the means to pay for expenses related to your case without a loan, you may be less likely to receive funding.
The amount of time the case is expected to take– The length of time your case is expected to take is another critical factor. The longer your case is expected to take, the more risk is involved for the funding company. As a result, you may be required to pay a higher interest rate on your loan if your case is expected to take a long time to settle.
3) Which Cases Are Eligible for Funding?
The type of case you have will play a role in whether or not you can obtain lawsuit funding. In general, personal injury cases are the most likely to be approved for funding. These cases usually involve physical injuries, which can result in high medical bills and lost wages.
Other types of cases that may be eligible for lawsuit funding include:
-Cases involving wrongful death
-Cases involving sexual harassment or discrimination
-Cases involving defective products
-Cases involving medical malpractice
Whether you are a plaintiff or an attorney, it is essential to be well-informed about lawsuit funding in California. With the correct information, you can make the best decision for your case. Lawsuit funding helps level the playing field and gives you the financial resources to pursue your case. If you are looking for loan to fund your lawsuit, look for a reliable litigation financing company with a good reputation in the market.
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