What Is Legal Capital?

It is indisputable that lawsuits can be very expensive. One need but consider the enormous amounts of paperwork, argumentation, depositions, evidence compilation, and attorney's fees to have a pretty good idea of exactly how expensive those lawsuits can be.

Somebody has to pay for all of those things, and to do so, in many cases, legal capital is a necessary thing. Legal capital can be defined generally as the money needed to front the cost of completing a legal action. Legal capital is used to pay for all of the staggering costs that can be accrued during the legal process.

Where Does Legal Capital Come From?

Legal Capital is generally gleaned from the law offices of the attorney that is representing a client in the case. Ordinarily, these attorneys maintain a legal capital fund that contains enough liquid assets to be able to cover the costs that they accrue during the case. If the case turns out to be more expensive than the attorney originally anticipated, then the attorney may need to secure some type of loan in order to make sure that the case isn't loss due to want for or lack of enough legal capital.

There are companies which will, in the event that an attorney or client does not have enough legal capital for the large costs of the legal process, make a loan to the attorney. The company will secure a lien on the settlement that is anticipated, and the loan is paid back when the requisite amount of money comes in.

What, Specifically, Is Legal Capital Used For?

It cannot be stressed enough that lawsuits are a tremendously expensive process. Documents must be filed, experts must be hired, and more. Another really critical part of the legal process for which legal capital is required is the compilation of exhibits and evidence. Pictures must be taken, documents must be found, copied, and copied again. In some cases, reconstructions of the crime scene must be created. Perhaps one of the most expensive parts of the legal process is the contacting and deposition of important witnesses, as they must give their testimony as to what the facts are so that a reasonable judgment may be made. All of these things cost money, and legal funding must be used to pay for them.

Will I Need Legal Capital?

Every case that goes through the court system costs money. That's just how it is. Whether or not it actually becomes necessary for legal capital to be secured in order for the case to be tried successfully is completely dependent on the amount of money needed. If the only cost in a particular case is the attorney's fee, then legal capital won't be necessary. This is pretty common in misdemeanor cases, divorce cases, or other similar minor matters. However, in the major cases, such as murder, wrongful death, etc., legal capital is almost always necessary.

The amounts of legal capital needed, the functions that the money needs to fulfill, and the timeframe for getting the money all vary greatly depending on the case; but, unequivocally, legal capital is a critical and necessary foundation of the American justice system.

Our Services

Case Funding's programs provide plaintiffs and litigation attorneys with short-term financing by advancing money against the future proceeds of lawsuits. Case Funding minimizes financial pressures on plaintiffs until a fair settlement can be reached. For plaintiffs, CaseFunding provides non-recourse cash advances on pending lawsuits. Case Funding works with attorneys to create a financial package that meets their law firm's cash flow needs, whether in the form of full-recourse loans, or line-of-credit facilities.