Justice is an essential part of any country’s legal system, with litigation no exception. Litigation is the process of bringing about a claim against another party in the event of a dispute; however, as with any legal proceedings, the hefty cost involved can be unaffordable for many individuals or businesses.
Thankfully, a transparent and universal system of third-party litigation funding has become an essential way of funding disputes that would otherwise be costly to the claimant in terms of legal fees, associated costs, and lost revenue. Let’s look at litigation funding and how to find a funder in more detail.
How to find a litigation funder
According to the Association of Litigation Funders of England and Wales, the best course of action is to identify a reputable litigation funder by searching through its register of funders. This ensures the third-party funders adhere to a regulated code of conduct. Third-party funders are not permitted to get involved in the case.
Specialist help on seeking litigation funding is available from experts such as //www.novo-modo.co.uk/litigation-funding.
How does the funding work?
It is important to note that litigation funding is not a loan; instead, it is offered by a third party to the claimant to cover costs associated with the claim, such as legal fees and lost revenue. It may also be used to clear any debts associated with the case. There is no requirement to pay the funding back; instead, an agreement will be drawn up at the commencement of the process to arrange the repayment of the funding to the provider in the event the case is won.
As a result, there is no need to be in good credit standing at the time of the application, nor does litigation funding affect the individual’s credit score.
What if the case is unsuccessful?
In the event that the case is not won, the third party will write the investment off. Typically, the third-party litigation funding provider will already have after-the-event insurance in place to cover its losses in such an eventuality.