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| About LawMax | Apply On-Line | When Funding Makes Sense | The Funding Process | The LawMax Network | Frequently Asked Questions | Contact LawMax | |
| Benefits of a Lawsuit Advance |
| Commercial Lawsuit Funding |
| Funding for Attorneys |
Question: What is litigation financing?
Answer: Some of the confusion about litigation financing stems from the fact that this form of funding is sometimes referred to as a “lawsuit loan” and that leads some to think that litigation funding is simply another type of loan. In fact, a lawsuit advance is a NOT a loan because it is a non-recourse. This form of financing allows plaintiffs who would not quality for traditional financing to get advances against the expected proceeds of their settlements. Unlike a traditional loan, no employment verification or credit check is required, and there are no monthly payments. While a loan must be repaid – regardless of the debtor’s ability to repay it – a lawsuit advance is only repaid if and when the lawsuit is won at trial or settled out of court. |
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Question: What is the difference between legal finance and litigation financing?
Answer: They are the same thing. The service we offer goes by many terms including lawsuit advance, lawsuit cash advance, pre-settlement funding, legal funding, legal finance, litigation financing and lawsuit loans. While the term “loan” should not be used because the transaction is NOT a loan, the other terms are more or less interchangeable. |
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Question: Who qualifies for an advance?
Answer: If a plaintiff in a lawsuit has retained the services of an attorney, there are documented damages and compelling liability, and the defendant is capable of paying a judgment, the plaintiff meets our basic requirements. However, each request for funding is considered on a case-by-case basis, so a LawMax underwriter will request supporting documentation so he can thoroughly analyze the case. |
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Question: Should my client get a lawsuit advance?
Answer: The decision to get litigation funding should be weighed carefully. In general, if your client needs money and can get funding from a less expensive source, such as savings or a loan against a life insurance policy, he or she should take advantage of such less expensive options. However, for the client who does not have those options, a lawsuit advance makes a lot of sense. |
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Question: What role does LawMax play in a lawsuit once it funds a client?
Answer: LawMax provides funds to the client and takes the position of any other lien holder. LawMax is neither a back-seat driver nor a Monday-morning quarterback. We do not offer advice, nor will we criticize any decisions you make about your prosecution of your client’s claim. We do not affect the outcome of the case in any way, and we will 100% support your decisions, regardless of the outcome. |
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Question: What are the costs associated with a lawsuit advance?
Answer: LawMax does not charge any application fees or other up front charges. And since the transaction is not a loan, LawMax does not charge interest. LawMax charges a “risk premium” which is added to the advance in six-month intervals, and the actual risk premium is determined on a case-by-case basis. The cost of the advance is explained to you and your client when the advance is approved. |
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Question: What types of cases qualify for litigation funding?
Answer: LawMax invests in many types of cases, including:
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Question: What are the benefits of litigation funding for my client?
Answer: For a client in financial need, a lawsuit advance can be the difference between staying in his or her home or actually becoming homeless! For the client who cannot work, a lawsuit cash advance covers basic living expenses while the client awaits the outcome of his or her claim. And since there are no monthly payments, a lawsuit advance does not create yet another monthly obligation as a conventional loan would. |
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Question: What are the benefits of litigation funding for the attorney and law firm?
Answer: Securing an advance for a client stops calls from that client asking when he or she will see money from the claim. And a lawsuit advance will enable a client in need of cash to turn down a low-ball offer from the defendant. Ultimately, litigation financing levels the playing field, especially against the well-financed defendant, enabling you to win fairer, larger settlements for your clients. |
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Question: When should I recommend LawMax to my client?
Answer: Only recommend us to the client who is facing financial hardship and needs cash to pay critical bills, such as the rent or mortgage, car payment and utilities. The money should NOT be used for frivolous purposes, although the client is free to use the money as he or she wishes. |
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Question: Why work with LawMax?
Answer: LawMax is the premier provider of lawsuit funding. As one of the oldest, best known and most respected legal finance providers, you can refer a client to LawMax confident your client will receive fast, professional, courteous service. You will also find that our underwriters make working with LawMax as minimally interruptive of your law practice as possible. For example, when we request supporting documentation, we give you the option of submitting hard-copy or digital files, whichever is more convenient for you. LawMax is a founding member of ALFA (The American Legal Finance Association), and we strictly abide by their Code of Ethics. |
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Question: Is it ethical to recommend a client to a lawsuit advance provider?
Answer: All state bar associations that have ruled on the subject have issued favorable ethics opinions regarding an attorney's ability to refer clients to non-recourse funding sources. In fact, referring a client to LawMax is no different than referring a client to a medical professional, CPA, tax advisor or investment counselor. |
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| About LawMax | Apply On-Line | When Funding Makes Sense | The Funding Process | The LawMax Network | Frequently Asked Questions | Contact LawMax | |
