What is Third-Party Litigation Funding?

Third-party litigation funding, also known as litigation funding or legal financing, is a financial arrangement where a third-party funder provides financial support to a plaintiff in a lawsuit. In exchange, the funder receives a portion of the settlement or judgment if the case is successful. This type of funding allows individuals or businesses to pursue legal claims without bearing the full financial burden of litigation.

For many plaintiffs, personal injury lawsuits can be financially overwhelming. Medical bills, repair costs, and other damages often pile up quickly, leaving victims unable to afford the legal costs of pursuing justice. Third-party litigation funding offers a solution by covering some or all of these costs, enabling plaintiffs to focus on their recovery and legal strategy.

If the lawsuit is unsuccessful, the third-party funder typically absorbs the financial loss, meaning that the plaintiff is not responsible for repayment. This arrangement makes third-party funding distinct from traditional loans, as it does not impact the plaintiff’s credit score or appear on their credit report.

Benefits of Third-Party Litigation Funding

Third-party litigation funding can be particularly beneficial for personal injury victims in Connecticut. Some of the key advantages include:

• Reduced Financial Risk: Litigation can be expensive. Third-party funding allows you to transfer some or all of the financial risk to the funder, so you don’t have to worry about upfront legal costs.
• Access to Justice: Many individuals lack the financial resources to pursue legitimate claims. Litigation funding ensures you can seek full compensation for damages caused by someone else’s negligence.
• No Debt Obligation: Unlike loans, third-party funding is not considered a debt. If your case is unsuccessful, you are not required to repay the funder, and your credit score remains unaffected.
• Focusing on Recovery: With financial stress alleviated, you can focus on your medical recovery and personal well-being while your attorney handles the legal process.

At Bert McDowell Injury Law, we understand how overwhelming it can be to navigate the legal system while dealing with the aftermath of an injury. Third-party funding can provide the support you need to pursue justice without additional financial strain.

Who is Eligible for Third-Party Litigation Funding?

Not everyone qualifies for third-party litigation funding. Funders carefully evaluate each case to determine its viability and potential return on investment. Factors that funders may consider include:

• Strength of Your Case: The likelihood of a favorable outcome and the estimated settlement amount are primary considerations.
• Your Attorney’s Experience: A skilled and experienced attorney can significantly influence the outcome of your case.
• The Defendant’s Financial Standing: Funders assess whether the defendant has the financial means to pay the settlement amount if you win.
• Type of Case: Certain types of claims, such as personal injury cases, are more likely to qualify for funding.
• Your Background: While less common, some funders may also review your personal background and circumstances.

If you’re considering third-party funding for a personal injury claim in Connecticut, consulting with an experienced attorney is crucial. They can help you navigate the process, present your case effectively to potential funders, and ensure your rights and interests are protected.

Contact Bert McDowell Injury Law for Help

Pursuing financial recovery for personal injuries can be challenging, but you don’t have to face it alone. At Bert McDowell Injury Law, we are dedicated to helping personal injury victims in Connecticut navigate the legal process and explore their options, including third-party litigation funding.

If you were injured due to someone else’s negligence, we’re here to help. We offer a FREE consultation to discuss your case, answer your questions, and provide expert legal guidance.

Contact us today by calling 475-231-3274 or filling out our online contact form. Let us help you pursue the justice and compensation you deserve.