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Insolvency Litigation Funding

Insolvency Litigation Funding

After big changes were made to the law on funding insolvency litigation earlier this year, insolvency practitioners will be on the look-out for new options to help them finance legal action. Insolvency Practitioners can sometimes can take on businesses and estates that have good legal claims against defendants but they may have little or no money available to pursue litigation. This is why Litigation Funding has become an extremely popular mechanism for insolvency practitioners looking to use legal action to pursue a potential recovery through the courts. We work with Insolvency Practitioners to fully understand their requirements so that we can provide them with the funding solutions they require to ensure they have the best possible resources to achieve a favourable ruling for their clients. We do this by providing 2 core services which are detailed below.

1. Funding

All Insolvency Litigation Funding requirements are bespoke and require extensive analysis and due diligence. This can be a lengthy process which in time sensitive situations can create issues for insolvency practitioners. Litigation Funding companies can sometimes have heavy case loads and therefore assessing cases of an urgent nature might not always be feasible. In certain situations like this Claims Funding can assess cases and provide funding directly. This allows our clients to obtain the non-recourse funding solutions in order for them to begin their litigation requirements.

2. Purchasing

Insolvency Practitioners can sometimes find themselves in situations where they have viable litigation cases but face an urgent need from creditors to obtain liquid assets in the form of cash as quickly as possible. Lengthy litigation proceedings may not be the most viable option at this time. In these circumstances we can work with Insolvency practitioners by purchasing claims outright with upfront cash payments to satisfy the creditors needs. Various purchasing terms can be negotiated including those with upfront and backend arrangements to satisfy the creditors requirements.

To explore the various Claims funding solutions for Insolvency Litigation Funding contact us for a free no obligation review.

The Insolvency Litigation Funding Industry

The economy is challenging for many businesses, and it goes without saying that some businesses will be directly challenged by insolvency issues. Recent changes in the litigation industry have resulted in Insolvency Practitioners being no longer able to recover conditional fee arrangement (CFA) uplifts and after the event (ATE) insurance premiums from unsuccessful litigation proceedings. With these radical changes the need for suitable litigation funding has become increasingly popular for Insolvency practitioners. The ability to finance litigation on a non-recourse basis with no monthly repayments required until the claim is settled gives Insolvency Practitioners a financially sound solution for initiating the recovery process which will also appeal to the relevant clients they are representing.

More About Insolvency Litigation Funding

Even the strongest legal cases can be, and have been held back due to a fear of the costs of litigation, and sometimes even due to lack of funding. However, this isn’t the way it should be. In an ideal world, all strong cases should be pursued, regardless of the funds you have immediately available. You should never let low funds stop you from going after a perfectly valid case. Insolvency litigation funding can be sought out for those who have little to no funds to pursue a strong case, and the benefits of doing so are vast.

What Insolvency Litigation Funding Can Do For You

This type of funding isn’t a loan, but rather a non-recourse finance option. You will only pay back the funding if the claim has been successful and in some instances it is also possible to recover the cost of the funding from the third party in the event of a successful claim. Here’s what Insolvency litigation funding can actually do to help you and the claim at hand:

● Gives you the financial resources to pursue individual or multiple claims
● Allows you to employ the right team of legal professionals
● Gives you the ability to hire additional experts and consultants to strengthen a claim
● Allows you to pursue potential write offs to maximize the returns to creditors.

As an Insolvency Litigation, you’ll know that there are many aspects that go into successful asset tracing. You must first have the right team in place, and ensure they have the right level of expertise needed for the case. They must also be within the right jurisdiction, and be able to work together properly to achieve the desired outcome. The people you will need to build your team will include different kinds of solicitors and investigators, amongst other professionals. This means that securing the right amount of litigation funding can be crucial to pursue the case effectively. The stakes are usually very high, and you may need the means to fund large multi-million pound claims. You may be able to do this without securing insolvency litigation funding the risks are high and may not always be in the best interests of your creditors.

We can help you to fund your claim. Our team can offer the funding you need in order to cover the legal costs of your case, disbursements, and insurances. We can also work with insolvency practitioners and purchase claims outright which we will litigate ourselves if this is a more suitable option for you and the business you are representing. If you want to know more about insolvency litigation funding and what it can do for your case, get in touch with us. We can give you a no obligation review, so simply enter your details on site and we’ll get back to you.

Insolvency Funding Summary

For an Insolvency Practitioner to obtain funding directly they must be able to:

● Pitch their case to funders and underwriters.
● Explore the market fully to get the best outcomes for stakeholders.
● Tell the difference between providers and the features offered.
● Understand the market of litigation funding as things continue to change.
● Explore the various funding, finance and insurance options available

To better understand this process and our services please contact us for a free no obligation review of your requirements.

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