Individuals or businesses who have a valid legal claim and are in need of financial support to pursue their case may be eligible for litigation funding. The funding company will evaluate the case to determine the likelihood of success and the potential award or settlement before providing funding.
The process typically begins with the plaintiff contacting a litigation funding company and providing information about their legal claim. One Eagle Advisory and its team of tax preparers will then evaluate the case and, if they decide to fund it, provide the plaintiff with a specified amount of funding in exchange for a percentage of any settlement or award.
No, litigation funding is not a loan. It is a form of non-recourse financing, meaning that the plaintiff is not liable to pay the funding back if the case is lost, as opposed to a loan that must be repaid regardless of the outcome. The funding company assumes the risk of the lawsuit and is only repaid if the plaintiff wins or settles their case.
The funding process can vary depending on the complexity of the case and the funding company's evaluation process. In general, it can take anywhere from a few days to several weeks to complete the funding process.
Litigation funding is legal in many countries and states, but it is not legal in all jurisdictions. It is essential to check the laws regarding litigation funding in the jurisdiction where the case is filed or where the funding agreement is entered to confirm its legality.