There are many different types of plaintiff litigation funding that get financed every day. The following is a list of what to fix or know about before getting funding and helping you get the best possible chance to get pre-litigation funding.
Court Documents Ready For Email.
We see this all the time and most of the time therefore funding’s are denied. We will need to see some if not all the court documents. From a Proof of Claim on a Boy Scout case to a complaint from a complex patent infringement case. We need the documents. Those documents help determine if the case is worth investing in or not. So having the docs ready to go before the ask for funding will help expedite the process.
Difficult States To Get Plaintiff Litigation Funding In.
Due to different state laws, there are some states where it is not possible to get pre-settlement financing and or it is difficult to get funding. The following states are the ones that are difficult to obtain plaintiff pre-litigation financing.
- Arizona (unless over $25,000)
- North Carolina
- West Virginia
Has There Been A Prior Plaintiff Litigation Funding?
If there has been a prior funding that does not mean that you cannot get anymore. If though you have had a prior funding it needs to be disclosed. It will only help everything move faster. If when asked if there has been prior funding and if not answered truthfully the underwriter will start to not trust the client after the lien check. Disclosing this will help with the chance of getting the maximum amount available.
Does Your Attorney Support You Getting Financing?
Your attorney needs to know that you are looking for funding and applying for funding. Reason being is that if they do not support pre-litigation finance then there is noting that we can do. So, make sure to communicate with them that you are trying to get the financing and they are willing to sign off when the contract is done.
Are You Ready To Get On The Phone Or Respond Via Email?
Can you communicate about the case? Once the request for funding has been submitted usually a phone call or email happens shortly thereafter. If the underwriter cannot get ahold of you then the funding will be denied. So, make sure that you have time to talk about your case.
Is Your Attorney On Contingency?
Majority of the time when applying for litigation funding the attorney needs to be on contingency. Reason being is that underwriters want to see that the attorney has some “skin in the game”. This is not 100% of the time but it is close to that.
At The Most You Can Get Up To 20% Of What The Case Is Trying To Be Settled For.
Most of the time it is even less than that and only up to 10% of what the case is trying to be settled for. Reason being is that this is a non-recourse advance and there is quite a large amount of risk involved. With time, is an issue also. The newer the case usually the less money it will see invested into it.
Any Other Personal Liens Against You?
If you have other types of lien for example a child support lien against you it might make it more difficult to get funding. Or it might have to go to pay some or all of that off.
If It Is A Bigger Plaintiff Litigation Funding, What Will It Be Used For?
If a bigger funding is needed there needs to be reasons why this funding is needed and what the use of funds are for. Make sure that you have answers for this before speaking with any funder.
Not Everybody Is Approved For Plaintiff Litigation Funding.
Even know you have applied for litigation financing and have followed all the steps outlined above it does not guarantee getting approved for a non-recourse advance. The following steps just help position you and your case for the best possible ability for litigation financing. Sometimes a “no” is just a more of a “not at this time”. There might need for the case to be moving forward or counsel needs to be engaged or many other issues.
Any Other Questions?
Even know you have applied for litigation financing and have followed all the steps outlined above it does not guarantee getting approved for a non-recourse advance. The following steps just help position you and your case for the best possible ability for litigation financing. If there are any questions, please give us a call at 434-535-5229 or email us at email@example.com. At Verum we help you get the plaintiff litigation funding that you need!