Bankruptcy proceedings for businesses are usually loaded with complications and nuanced situations that make fighting them difficult. However, they can also be highly rewarding, which is why many lawyers specialize in insolvency cases. Many times, bankruptcy lawyers want to take on a case, but don’t feel confident that they’ll have the cash flow necessary to handle all of the general and case-related expenses while waiting for the case to resolve.
Insolvency law is a highly specialized field and serving insolvent clients or their creditors requires a range of skills beyond bankruptcy litigation. Law firms who serve clients in this practice area are encumbered with a unique set of challenges. Many clients are financially constrained, with the capital and resources needed for litigation often unavailable due to legal entanglements.
Litigation funding is a natural fit for firms that handle insolvency matters because it provides working capital that allows firms to perform the legal services needed to bring insolvency matters to a close.
At its core, insolvency law is not just about money and assets; it’s about people. There is a lot on the line for the businesses involved. From owners who built a company from the ground up and employees who rely on that company for their livelihood to creditors seeking their due, the results of insolvency litigation greatly impact people’s lives.
Attorneys who have the resources to offer the specialized services required in insolvency litigation can create a positive cycle in which better case outcomes bolster firm growth and stability. Insolvency litigation funding provides the means for greater investment in resources, which provides better client outcomes and a brighter, more secure future for the law firm.
To be the best in your field requires offering something that others don’t. For insolvency lawyers, that may mean taking cases on a contingency basis and investing in the recovery of assets or helping implement recovery strategies. No matter what, it means time—and time is one of the most precious and costly commodities that lawyers have.That’s one reason insolvency litigation funding is gaining so much popularity among insolvency lawyers. Through non-recourse insolvency litigation funding, lawyers secure the capital they need to sustain their firms while fighting for their insolvency clients. How does litigation funding work in insolvency cases? It’s simple and fast:
Insolvency litigation funding could be one of the most important strategies an insolvency lawyer has, both in the servicing of their clients and the growth of their firm.*Court approval may be necessary before lawyers can receive funding for insolvency cases.
