Questions? We’ve Got Answers! On How It Works
The process ALF uses to provide funding to a law firm with a portfolio of multiple cases or to a plaintiff with a single case involved in various stages of litigation contains many similar components. Below find several of the typical questions regarding “How It Works” asked by both law firms and their clients who desire to receive money prior to their individual case settlement or a portion of their firm’s portfolio of cases awaiting settlement.
Complete the on-line application. One of our executives or underwriters will follow up with you the same day to start the process.
Law Firms – We’ll have a brief discussion to explain details. If it seems that we’re a match, we’ll send you a basic application and have you provide us with a big picture overview of your current portfolio of cases to determine a potential funding amount.
Plaintiffs – We’ll have a more detailed discussion of your individual case and our Pre-Settlement Funding program. If it seems that we’re a match, with your permission our administrative staff will begin gathering information on your case so that we can work directly with your lawyer in an attempt to get you quickly funded.
Law Firms – After reviewing your portfolio of cases on a macro level, it seems that we could provide the capital your firm desires and our initial terms seem to be acceptable to you we’ll issue you a term sheet. At that stage due diligence begins and funding normally concludes in 30-60 days depending on the firm’s availability and responsiveness to details.
Plaintiffs – We send specific requests to your lawyer the same day we speak. Once your case information is returned to us from your lawyer or paralegal it normally takes one to two days for your lawsuit cash advance and pre-settlement funding approval. Then funding documents are sent to you and your lawyer for your signatures. Once we receive acceptable signed documents back a check or debit card is sent over night to you .
Law Firms & Plaintiffs – NO, There are no personal guarantees from either an attorney or a plaintiff and this is not a loan. Should an individual case or a portfolio of cases that are secured have an insufficient recovery at the conclusion of those case/s to repay our contractually agreed amounts the individual plaintiff or a law firm is not responsible or obligated to repay any previous funding amount or balance that you may have received. Further, no debt is ever created against you or the law firm nor is any other asset you may have ever attached as a result of not being able to fully repay your funding and any related fees.
Law Firms – We can normally fund 10%-20% or more of your future legal fees and costs, the initial term sheet will outline those potential amounts and other terms.
Plaintiffs – We can normally fund up to 10% of the conservative value of your case. Your funding document will provide exact amounts and all fees as well as payoffs required to satisfy other lien holders or medical providers if necessary.
Law Firms – Generally No. However, we prefer that your funding proceeds be used for timely growth opportunities such as case acquisition, to improve cash flow and/or to be used for various costs in an effort to settle cases in your portfolio. We must also be in a first position and can’t sit subordinate to any other debt including basic bank lines.
Plaintiffs – No, however we prefer that the Pre-Settlement Funding you receive be used for medical or other critical life needs and not spent on frivolous items while waiting for your potential future settlement.
For both Law Firms and Plaintiffs, we must be your exclusive provider of funding.
Depending on the facts and legal status of your individual claim or portfolio of cases, we may provide at our sole discretion multiple tranches of money to you as your case or portfolio of cases favorably mature.
There are no application fees for Law Firms or Plaintiffs for our staff of lawyers, executives and administrative staff to complete our substantial due diligence process on your funding request. If approved, all potential fees including payments that we may be required to make to third parties on your behalf will be disclosed in your term sheet or funding documents for your approval before you ever sign any final funding document or obligate your self in any way. Normal fees can include, underwriting, asset management, monthly maintenance, outside sales consultants or brokers, over night deliveries, UCC1 filings and others.
NEVER, The Law Firm and/or you the client are always in control of your case.
The law firm and plaintiff (client) are the sole decision makers regarding normal legal processes including your decision when, if and how much to settle for.
Law Firms – Rates currently start at 20% annual, simple and can go as high as 60% annual commensurate with risk.
Plaintiffs – Settled cases can start at 24% annual simple and unsettled cases normally range from 2.99% – 3.99% compounded monthly depending on our internal risk profile.
Whether a law firm or a plaintiff, we wait until a single case or a portfolio of cases settle to be repaid. Regardless of settlement timelines, we are paid a six month minimum of monthly rates. Law Firms pay a minimal monthly maintenance fee however, their principal amount funded and monthly affiliated interest rates are deferred until settlement.
Law Firms – Upon a single case or a portfolio of like settlements, we are paid a pre-determined amount through an independent third party administrator and the balance of any legal fees or proceeds go to your firm in alignment with the funding, escrow agreements and in compliance with all state bar requirements. If necessary, sub-accounts are also set up to separate the plaintiff proceeds.
Plaintiffs – When your case settles, we are paid in alignment with the funding agreement by your attorney from his trust account along with other lien holders and the balance of proceeds are released directly to you from your lawyer.
There are NO guarantees to fund either a law firm or plaintiff. Funding decisions remain solely with the Underwriting and Executive staff of American Legal Financial Services, LLC and any affiliate. Before any funding occurs, an offer is made in the form of a term sheet and/or funding agreement which the law firm and/or plaintiff shall have time to review and accept all terms and conditions. The offering of a funding agreement to a law firm or plaintiff does not obligate them to accept any funding offer nor does it obligate American Legal Financial Services, LLC or ay of its affiliates to fund.
All details, terms and conditions as outlined in the final, fully signed funding agreement between the parties shall serve as the operative agreement and only after American Legal Financial Services, LLC or any of its affiliates have actually funded the law firm or plaintiff.
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American Legal Financial Services is a finance company that focuses all our efforts in complex litigation often medically related and are considered leading experts in many types of Personal Injury litigation.