Frequently Asked Questions
What is legal funding?
Legal funding is a financial service designed to provide plaintiffs with immediate funding against the potential outcome of their pending legal claim. This funding helps plaintiffs cover living expenses, medical bills, and other financial obligations while awaiting a favorable settlement.
Is legal funding risky?
Legal funding carries no risk for plaintiffs. Since the funding is non-recourse, you are not obligated to repay the advance if you lose your case. Additionally, Plaintiff Investment Funding only approves funding for cases we believe have a high likelihood of success.
How does legal funding work?
Legal funding is straightforward. Plaintiffs apply for funding and are evaluated on the merit of their case. If approved, funding is provided based on your financial need and the estimated settlement amount. If the case is successful, the funding is repaid from the settlement proceeds. If the case is unsuccessful, the plaintiff typically owes nothing.
Who is eligible for legal funding?
Eligibility for funding is primarily based on the facts in your case and the likelihood of a successful outcome. Plaintiffs involved in personal injury claims, such as those resulting from auto accidents, slip and fall, medical malpractice, or defective products, may qualify for funding. However, each claim is unique, so it’s best to consult with us to determine your eligibility.
Do you need to have good credit to qualify for legal funding?
No, legal funding is not based on your credit score or financial history. The funding decision is primarily based on the details of your legal case and the likelihood of a favorable settlement or verdict.
How much funding can I receive?
Typically, Plaintiff Investment Funding provides cash advances up to $200,000. The amount of funding you receive depends on various factors, including the severity of your financial need, the likelihood of a settlement and the potential for recovery.
What expenses can legal funding cover?
Legal funding can be used to cover a variety of expenses, including medical bills, mortgage or rent payments, utility bills, car payments, groceries, and other everyday living expenses. It’s designed to help you manage your financial obligations while your case progresses through the legal system. You have the discretion to use the funds however you see fit.
Is legal funding taxable?
Generally, legal funding is considered non-taxable, as it’s regarded as an advance on a potential future settlement rather than income. However, it’s always a good idea to consult with a tax professional or attorney to understand the tax implications specific to your situation.