Are you and your family suffering financial hardship while you're fighting a pending lawsuit? If so, don't get discouraged and settle early for a lower amount. Consider using lawsuit financing to meet your financial needs.

Lawsuit financing is a cash advance, provided to injured parties in return for a promise to repay the advance after they win their case. The advance typically covers living expenses, medical and health care costs, expert witness, research, and attorney fees. But you can use the funds for anything: house and car payments, college tuition, car notes and daily living expenses. With lawsuit financing, you can continue your case and get the settlement you rightfully deserve.

Because lawsuit financing is non-recourse funding, not a loan, there are no monthly payments to make. Therefore, repayment of the advanced funds isn't required until after your case has been settled. And if you fail to win your case, you don't have to repay the advanced funds. The company that provided the funds as an investment bears the full risk. But if you win, the funding company will have a legal right to part of your award.

How Lawsuit Financing Works
Lawsuit financing can provide a financial float to floundering litigants involved in cases ranging from medical malpractice and personal injury to worker's compensation and sexual harassment. When an injured person receives lawsuit financing, he or she takes a lien on their future proceeds in exchange for cash today. The lien is for the amount of the cash advance and a specified monthly interest rate and is deducted from the settlement or judgment received from the outcome of the suit.

Generally, the lawsuit should be at least six months old, with settlement likely to take place within at least 18 months. Lawsuit financing companies will provide you with up to 20 percent of the expected judgment in return for a lien against the entire award remaining. This lien follows any claims placed on the case for attorney or medical fees. By minimizing the funded amount and time remaining on the case, lawsuit financing companies are able to keep litigant's costs small relative to their increased gain.

As investors, lawsuit financing companies will assess your case and estimate the value of the case and the risk involved. That estimate will determine how much cash you're advanced. This amount will actually depend on the nature of the case, insurance company involved, how long the case has been active, and the expected settlement date. The company's fee may be a flat fee or a percentage fee that accrues monthly. But, remember, you only have to pay the fee if you win.

Why Lawsuit Financing?
Litigation can be slow, stressful and extremely expensive. In fact, lawsuits cost America $246 billion a year, according to the President's Council of Economic Advisers. Cases may drag on for months and years, producing mounting legal and other expenses in the process. During this time, litigants"many of whom are unable to work"still must have enough money to live on and support their families. Often, they face the threat of losing their home, car and well being. The strain on their finances and emotions may force them to consider settling out of court.

However, lawsuit financing can enable them to hold out long enough to receive a much larger settlement. In short, lawsuit financing can fill a vital need for litigants who have no other viable option. And the fees involved in this type of funding may be a small price to pay for the larger gain they can enjoy.

Eligibility for Lawsuit Financing
Lawsuit financing may be the best resort if you are suffering financial hardship and have exhausted all other means of getting financing help. Qualifying is relatively easy, compared to traditional types of financing. In fact, the standard requirements, such as good credit and employment, don't apply.

Instead, eligibility is based strictly on the merits of your case. If you have a solid case with a high chance of winning, lawsuit financing will be easier to obtain. People who may be able to secure litigation funding include those who:

- Were injured in a car, boating or amusement park accident
- Are involved in a medical malpractice case with a doctor, nurse or paramedic
- Have been injured on the job or by dangerous products
- Are litigants in a wrongful death case
- Had a serious slip-and-fall accident
- Suffered from breach of contract
- Were discriminated against
- Were wrongfully terminated

Lawsuit financing can provide critical financial support for you and your family while you pursue justice.