How LitCap Works
Participation is reserved for the nation’s most recognized attorneys
Become a LitCap Member
Reserved for the nation's most recognized attorneys
Simply complete our membership application and if you are screened and approved, you’ll be a full LitCap member and part of our exclusive attorney network. Note: Membership is free to qualified attorneys.
File Your Lawsuit
File your lawsuit with a court of competent jurisdiction
After completing our membership application and becoming an approved LitCap member, file your lawsuit with a court of competent jurisdiction.
List Your Case
List your case on the LitCap platform
At the end of the listing form, you will indicate the amount of money you would like to borrow, based on the economic needs of your client’s case. The final step in the listing process will be to set the annual interest rate, “asking rate” or “bid” you are seeking for your client’s case. A reference rate will be provided, for guidance, based on your performance history and LitCap score.
Negotiate Interest Rate
Accept or negotiate interest and principal offers
Once the case is listed, an investor will review the case listing, your LitCap score, and the interest rate you are requesting. If the investor is interested in funding your case, they will indicate the interest rate they would like, and make an “offer” on your case.
Funds deposited in your IOLTA account
Once you reach an agreement with the investor, the funds will be sent to your IOLTA compliant Trust Account. You will pay a small processing fee for the transaction, only if you receive funds.
Maintain your case and update the status on a quarterly basis
You will maintain the lawsuit as you normally would have, but without any capital constraints or impediments. You will make quarterly status updates to the case so that the investor is assured you are maintaining the lawsuit.
Close Case & Return Funds
Make recovery, close case, and return funds (if you made a recovery)
When you make your recovery, you will wire transfer the funds back to the investor, with the accrued interest. If you fail to make a recovery, the debt is forgiven.
|What We Do||What We DON’T Do|
|DO: Provide attorneys access to fund and finance their out-of-pocket case costs on behalf of their clients.||DO NOT: Lend money for any use other than case-related expenses. Funds are not to be used for expenses such as living accommodations or attorney’s fees.|
|DO: Provide attorneys with a financing alternative that better suits their business.||DO NOT: Allow investor to share in the legal fees generated in a case. The principal and the interest of the loan is the only amount due no matter how small or large the recovery.|
|DO: Allow attorneys to seek case-related funding for cases that are currently on file with a court of competent jurisdiction.||DO NOT: Allow lawsuits to be listed on our platform that have not been previously filed with a court of competent jurisdiction.|
|DO: Conform to state ethics guidelines for jurisdictions LitCap serves.||DO NOT: Encourage frivolous, abusive, or meritless lawsuits.|
|DO: Allow attorneys to present non-privileged information about their case in the case listing||DO NOT: Allow lenders to communicate with attorneys post-funding nor allow undue outside influence on attorneys from investors.|
|DO: Contribute funds directly to IOLTA accounts. The interest accrued from IOLTA accounts is used for the attorney’s State Bar Association, and helps fund legal and charitable causes.||DO NOT: Require any periodic repayments. Repayment is due only at the end of case after a recovery is made, although funds may be partially repaid at any time.|