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Lawsuit Financing
Lawsuit FinancingLawsuit financing occurs when someone, or some institution, lends money to the claimant, or plaintiff, in a pending civil personal injury case, using the future prospects of settlement as collateral. The litigation loan is usually for living expenses to tide the plaintiff over through the litigation process, which can be lengthy. Most lawsuit loans must be repaid regardless of the outcome of the case, but there are some that don't have to be paid back unless settlement funds are received. The lender will require detailed information about the case from the plaintiff's lawyer. Accordingly, the lawyer will need to be wary of ethical rules impacted.
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