Lawyer Financing

For a law firm that practices contingent litigation managing cash flow is vitally important. Sadly managing ones cash flow is an afterthought for most trial lawyers. Cash flow is very sporadic as they only get paid when cases are successfully concluded. With many cases taking years to bring to conclusion projecting ones cash flow can be a daunting task.

Contingent firms typically advance all of the cost of litigation upfront in exchange for a percentage of the recovery. In a contingent case a firm may invest hundreds of attorney hours and tens of thousands of dollars into a case. If a firm loses a case it loses not only its time but the cash invested in hard costs as well. It gets worse, a firm is not allowed to deduct the money they have tied up is case costs. Not only do they have to fund the money up front but they have to fund it with after tax dollars. Then they repeat the cycle and plow the fees from successful cases into the next group of cases.

The missing ingredient in improving cash flow for most contingent law firms is something most businesses have been utilizing for decades. Leverage. Most lawyers have funded costs out of pocket since they started, only because that’s how its always been done.

A revolving line of credit can be one of the most important tools in a plaintiff lawyers fight for justice. By using borrowed money to fund litigation expenses a firm can eliminate the negative tax consequences of self funding. The firm actually realizes the income it is receiving in fees. Any interest a firm pays can be offset by having the money that was tied up in case costs available for firm expansion or outside investments. But the biggest advantage is no longer using after tax dollars to fund case development expenses.

We are in a time where trial law firms have more options than ever when it comes to financing their practice, from traditional banks and specialty finance companies to legal financial consultants. Contingent lawyers can and must pay attention to the bottom line if they wish to continue helping their clients.

Originally published here.

Settling legal costs in civil litigation in England has become more complex over years. It is unfortunate to see successful litigants struggling with proper disbursement of recoverable costs. What if you are not awarded the entire legal costs incurred during the court proceedings? What if your solicitor sends you an unexpectedly high invoice or a disputed bill?

To cover these kinds of event you need a law costs draftsman who can conduct a detailed assessment of all legal costs and resolve the disbursement issues between successful and unsuccessful parties. In England and Wales, this (law of costs) is a typical of common law jurisdictions which demands an experienced practitioner to resolve the matter. And, who better than a law costs consultant to help prepare a detailed bill of costs?

Law costs draftsmen are experienced in detailed assessments of legal costs ? whether it is Inter Parte costs, solicitor-client costs or legal fees, costs in third-party claims and legal aid costs for solicitors. If you are an unsatisfied litigant here are the ways a law costs draftsman can help you in successful claims.

]]>

For Inter Parte costs: 

If the unsuccessful party does not agree to pay you the litigation costs, you may file with the court a detailed breakdown of the costs and expenses incurred. This is known as bill of costs which a Law costs draftsman usually prepare and serve to the officer of the court or district judge for  final decisions. The draftsman gets involved with all these procedural steps so that the costs can be agreed between parties.

For solicitor-client costs:

At times, you may be unhappy with the solicitor bills for the services rendered. Therefore, you may require the costs to be assessed on indemnity basis for their reasonableness by a judge.  On request, a law costs consultant can prepare the detailed assessment which may result in decreased lawyer’s invoice. In case, the reduced amount is more than the 1/5th, the solicitor has to pay for the assessment process, not you.

In addition, if you are the victim of champerty, upon court instructions, the law costs work consultants can assess your case. It is good to know that, in English law, solicitors are not allowed to work for the share of awards or compensatory benefits received from the lawsuits. Other than preparing bill of costs, the law costs specialists can advise a client on necessary legal procedures. If needed, they can also argue in support of the bill or oppose it. 

Legal aid costs:  Other than private clients, law costs draftsman can also serve solicitors who represent publicly-funded clients.  In such cases, legal service commission or court may ask for a detailed bill before payment is made to the solicitor from the community legal fund.  Even for criminal cases, if there is any such objectionable matter regarding payment amount, law costs draftsman can prepare the written submissions.

Originally published here.

If you are having difficulties with finances and are considering debt consolidation or bankruptcy, you may also be considering hiring a bankruptcy lawyer. Of course for those who are in a financial rut or on the verge of financial ruin, coming up with extra funds to pay a bankruptcy lawyer can be downright impossible. Despite the shortage of money, it is often best to still consider at least consulting with a bankruptcy lawyer before you begin the process.

The main purpose of a bankruptcy lawyer is to help an individual or business go through the legal procedures for filing bankruptcy. Lawyers are meant to help deal with creditors, meet with the court systems to set up payment plans or repayment programs, gather together and liquidate assets, and fill out and file necessary paperwork. Just as a realtor would be the knowledgeable party in the selling or buying of a home, a bankruptcy lawyer will be that knowledgeable source during a bankruptcy proceeding.

In most state and county legal systems, you are not required to have a bankruptcy lawyer for the legal proceedings. This does not always mean it is wise to do without a bankruptcy lawyer, though, as most specialize in just financial law. Unless the court case would be easily cut and dry or you already know a great deal about the legal system in this case, a bankruptcy lawyer can help from becoming overwhelmed with the legalities of the system.

]]>

From the start, a good bankruptcy lawyer should help you to determine which chapter of bankruptcy to file and will offer sound reasons why. If you don’t know anything about the different chapters, this is an excellent reason to begin consulting a lawyer. Many lawyers will even offer a free consultation where you can simply claim the advice and move on to take care of the remainder of the case yourself. Often, though, lawyers will charge by visit or by activity, such as appearing at the courthouse or filing paperwork.

Keep in mind that not all bankruptcy lawyers specialize in the same type of cases, so it is important to find a lawyer who can help you with the type of financial difficulties you are having. Some bankruptcy lawyers work specifically with businesses, while others work solely with individuals. Having a good experience with your lawyer will undoubtedly include finding someone knowledgeable in the areas you need expertise.

Another excellent reason to consider hiring a bankruptcy lawyer is simply to have someone knowledgeable who can help guide you through the paperwork process. In bankruptcy cases the paperwork is the most overwhelming aspect and more often than not, bankruptcy lawyers will actually fill out and file all of the paperwork for you. This takes away the burden of dealing with paperwork in the middle of a financially and emotionally straining time.

If you decide that hiring a bankruptcy lawyer is right for you, ask the local court house for names of lawyers in the area. You may also want to consider asking trusted friends or family advice for finding bankruptcy lawyers. If all else fails, take advantage of technology and research cases in your area to see which bankruptcy lawyers most often represent individuals or businesses. This is a great way to determine who the best lawyers are for your financial needs.

Originally published here.