29 May Legal Funding in Argentina: Buenos Aires Litigation Financing Lawyers
Legal Funding in Argentina: Buenos Aires Litigation Financing Lawyers
What is Legal Funding in Argentina?
Lawsuits in Argentina can be very expensive, long-lasting and tedious. Legal funding, which allows plaintiffs to avoid financial ruin, gives them the peace of mind needed to continue litigating their lawsuit. This mechanism can help avoid financial disaster during the pending of a lawsuit, which can take years. The money is used not just to pay for litigation, but also for personal matters such as to avoid foreclosure, eviction, bankruptcy, and ruined credit. Legal Funding in Argentina
Legal Funding in Argentina
As anyone who has been involved in a personal injury lawsuit in Argentina knows, once a lawsuit is filed, it can be a long time before a settlement is reached and any award is paid. As a result, some people turn to lawsuit funding. Victims who’ve been injured usually have ongoing expenses to cover while waiting for their lawsuits to work their way through the legal process, including medical care and cost-of-living expenses.
Attorneys or law firms may seek law firm financing to provide cash flow while a case is in litigation. Legal funding can be used to hire expert witnesses, pay for the case and trial costs, litigation support, general operating expenses, tax distributions, marketing, and business development. In addition, financing is available for fee advances on settled cases, verdicts, and cases on appeal.
Legal funding mostly applies to personal injury cases, but also to commercial disputes, civil rights cases, workers’ compensation, and structured settlement.
Plaintiffs would use legal financing or funding. On the other hand, defendants would resort to legal defense funds.
People often confuse legal funding with loans. Actually, litigation funding is generally not a loan, but rather as a form of an asset purchase. There is no need to repay funding if the plaintiff’s lawsuit is unsuccessful. In addition, litigants generally do not have to pay monthly fees in obtaining legal financing. Instead, there are no payments of any kind until the case settles. This may take months or years away.
Benefits of Legal Funding in Argentina
Litigants and even law firms can finance their litigation or other legal costs through a third party funding company. These third-party funding companies provide a cash advance to litigants in exchange for a percentage share of the judgment or settlement.
People who normally do not have access to loans will have access to legal financing. In contrast to banks, the underwriting of legal funding advances is based on the merits of the lawsuit. Banks do not recognize lawsuits as assets when determining an individual’s qualification for a traditional loan. As such, many plaintiffs that may not qualify for traditional credit can qualify for legal funding. Thus, through lawsuit funding, they are able to get the money they need until their case settles.
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