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Funding Lawsuits in the Interim

Lawsuits are difficult to pay for, even though at the end you usually come into money; that's why interim funding can be important. About halfway through the lawsuit, you may run out of money to pay your lawyer, pay living expenses, or keep your business running. If you have an injection of cash at about that time, it can make the difference between dropping your lawsuit and winning it.

There are finance companies available specializing in funding lawsuits in just these circumstances. These companies are betting you'll win your lawsuit, and because they believe in you, they're willing to advance you cash to keep you going.

How Interim Funding Works

Interim funding companies are a very special type of finance business. They don't give loans; rather, because of the way the law is written, they provide you with cash advances. However, you will have to pay a fee after your settlement comes through. The fee will either be a set amount of money, or a percentage calculated the same way interest is. These sorts of cash advances are only repaid if you win your lawsuit; if you lose, you owe nothing. Their fees can be pretty high. If it's a choice between being able to continue with your lawsuit or not, though, it may be worth it.

You can find dozens of finance companies that will fund your lawsuit online; or you can ask your lawyer to recommend one that he or she may have worked with in the past. Don't ever go with the first finance company you find. Their fees vary widely, and are calculated in different ways, so you'll need to shop around seriously to find the best deal for you. Before using a finance company, you should educate yourself on how interim funding companies work. You should also check the law in your state. In a few states, this method for financing your lawsuit is not legal. Your lawyer should know the answer, and should also be able to suggest other methods for financing your lawsuit.

Whatever else you do, you should never give up. Just because things seem a little difficult about halfway through doesn't mean that you're going to lose in the end. Most of the time in the justice system, the good guy wins. If your case has merit, stick with it until the end.

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