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Litigation is expensive, and some families in litigation run out of money before their lawsuit has concluded. The Bairs Foundation is a nonprofit organization that helps people suffering because of a catastrophic accident. Its low interest rate is a stark contrast from that of many participants in the for-profit, non-recourse loan industry. Their business models and guarantees to investors often make the cost of capital exorbitant for plaintiffs – sometimes tacking on as much as 100 percent interest per year.

What is Non-Recourse Lending?

Lenders of recourse loans can continue to collect debt even after they’ve taken a person’s collateral. On the other hand, lenders of non-recourse loans do not hold borrowers personally liable – if a plaintiff loses his or her case, the lender loses its money. That’s how they justify the exorbitant interest rates.

Generally speaking, alternative litigation finance is “…the funding of litigation activities by entities other than the parties themselves, their counsel, or other entities with a preexisting contractual relationship with one of the parties, such as an indemnitor or a liability insurer,” according to the American Bar Association (ABA) Commission on Ethics 20/20 Informational Report. The ABA has noted the transactions have increasingly been the subject of scrutiny by state bar ethics committees.

The Bairs Foundation is breaking the status quo in non-recourse finance by providing capital with low interest.

Funding on a Nonprofit Basis

With almost two decades of experience, the Bairs Foundation seeks to bring more ethical goodwill into the civil justice community by providing the necessary funding for plaintiffs on a not-for-profit basis. When financial relief comes without the usury interest rates of for-profit lenders, plaintiffs and their families can survive the course of their litigation and thrive afterward.

Check out the Bairs Foundation website to learn more about how the foundation low interest rates, and please share this information with anyone who might be struggling with making ends meet as they deal with a lawsuit.

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