How Litigation Finance Can Benefit You When Filing for Bankruptcy

Over the past decade, bankruptcy filings have dropped. To put it into perspective, there were nearly 61,000 bankruptcy filings in 2009 compared to a little over 22,000 in 2019. This trend is about to make 180, as many confront the crushing effects of the COVID-19 pandemic. In preparation for the impending filings, law firms are in full demand for bankruptcy attorneys. Third-party funding may offer a creative and viable solution for restructuring attorneys and advisors to consider throughout the bankruptcy process.

Think Beyond the Box

While some may have previously preferred more traditional financing sources, the present climate limits the number of conventional means of funding. Without sufficient funds, a claim holder’s capacity to adequately litigate claims is limited. A claim holder will almost inevitably settle for less than their claim’s worth to avoid an unpredictable court battle against a more financially able defendant. Litigation finance offers a solution. Through third-party financing, claimants are given with the resources and flexibility needed to litigate claims in their entirety. Where traditional funding options might fall short, litigation finance can fill in the gaps.

Pull From the Toolbox

Litigation funding provides claimants with a hefty toolbox.

  • Non-recourse. The claimant can litigate without using their own funds or placing additional assets in jeopardy. In contrast, other financing alternatives require payments throughout the processor, and sometimes after the litigation has concluded, whether or not the case offered a recovery.
  • Dream team counsel. The additional capital grants the claimant the tools needed to go after the ideal counsel of its choice, instead of settling for a counsel it can just afford.
  • De-risk risky business. Third-party funding minimizes risks in a time when claim holders cannot afford to lose. Litigation finance takes on the role of sharing and therefore diffusing the risk that claimants take on.


With the aid of litigation finance, a new set of financing options is opened up to debtors. Claimants are equipped with the resources necessary to help them in their time of need.


For more information visit Town Center Partners.


Topics: Litigation finance, third-party funding, legal funding, jurisdictions


TownCenter Partner Team

TownCenter Partners, LLC lead Asset Manager is Mr. Roni A. Elias. From modest beginnings, and with the help of a hand-picked dream team of professionals we have built one of the most dynamic and fastest growing companies in the country. TownCenter Partners LLC(TCP) is a real estate partner and master-planner providing development, leasing, management, and third party services. The company’s demonstrated ability to apply big ideas in creative and innovative ways has played a defining role in the firm’s success. Yet, TCP's most important insight has been the core understanding that it is not sight lines or site plans, but human activity, that defines a space and creates a place.