Utilizing Litigation Funding in Bankruptcy
Priya Pai: When you think about it, bankruptcy litigation and litigation funding make perfect sense together. We often see bankruptcy matters where there's valuable litigation claims in the estate but not enough resources to pursue them.
Litigation funding can come in and help in a number of different ways. We can fund an investigative claims analysis to ascertain the value of a claim. We can fund top-notch counsel who otherwise wouldn't be able to take the case on a contingency. And we can even help monetize a large litigation claim where we fund part of the fees but also provide additional funding that can be used by the estate to pay creditors or fund other litigation.
Ultimately, litigation funding shifts the risk from creditors to funders and helps reduce the need for pennies on the dollar settlements.