Law Firm Financing
"Heirs to pending fortunes, languishing in fiscal purgatory; contingency fees lingering on the horizon, mirages of prosperity yet unfulfilled."
P. Daniel Villagómez
For every personal injury case a lawyer or law firm has been retained, who’s fees can be collateralized.
in every personal injury lawsuit
equity stake in each of the lawyer’s civil cases’ (principally personal injury) contingency fee
This equity can be hypothecated exactly the way a home is mortgaged.
This is enough to help a law firm grow, but not so much that it makes it difficult to pay the financial institution back.
Loan to Value (LTV)
LTV should be used discerningly in this industry, since loans are open to usury laws. Loans usually only apply to Law Firm Financing, NOT to Plaintiff Funding or Medical Factoring. We will liberally use LTV throughout this prospectus so we can describe the amount of capital being deployed based on our assessment of asset value, regardless if the instrument is a loan or not.
We can better gauge a LTV on a sliding scale by:
Age of Accident
Medical Treatment
Litigation Firm
and other Underwriting Criteria
Law Firm Financing Calculator
Security of Payment
The law firm being financed always signs a Letter of Protection (LOP) before Villagómez Capital releases any capital. They may go by different names, but they are all liens. Similar to a mechanic’s lien on a mortgage, this LOP is a directive signed by the law firm receiving the award from any claim, that instructs and obligates the law firm to pay Villagómez Capital when they receive remuneration from the claim being hypothecated.
Additionally, a Uniform Commercial Code Financing Statement (UCC) can be filed so that the law firm receiving financing cannot hypothecate the same receivables more than once.
If they do, Villagómez Capital will hold the first position.
