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Legal Funding
Information: Legal Funding is sometimes called advance funding, or
litigation money. Simply put, Legal Funding is a means of financing the
claimant while his or her claim goes through the legal
system, which can be time consuming. The legal funding comes when someone
purchases a portion of a future recovery or settlement. The portion is
generally a defined amount, usually to cover living expenses pending settlement,
rather than a percentage of the future settlement. In some legal funding
schemes there is no payback of the pre-settlement money unless money is
ultimately received in settlement of the case. The attorney involved should be mindful of ethical rules
impacted by legal funding issues.
