Arizona (AZ) Lawsuit Loans

Updated on 3/26/2024

This article helps plaintiffs and attorneys alike learn more about lawsuit loans and alternatives in Arizona. Below you will find the following information:

Lawsuit loan companies serving Arizona

Below you will find a list of companies that provide funding in Arizona. We highlight lawsuit loan companies we recommend, as well as local and regional funding companies where applicable.

Recommended lawsuit loan companies funding Arizona residents

We recommend the following companies for plaintiffs residing in Arizona.

Our pick for low rate lawsuit loans

USClaims offers some of the lowest, non-compounding rates in the industry. Many companies claim to offer “the lowest rates in the industry” – we recommend comparing them against an offer from USClaims to see for yourself.

View USClaims’ profile

See our full list of recommended companies here.

Lawsuit funding laws, regulation, and relevant ethics opinions in Arizona

Though proposed in the past, there are no statutes governing lawsuit funding agreements in Arizona. Legal precedent for the enforceability of these contracts is questionable. Arizona courts have struck down specific lawsuit lending contracts in the past. The AZ Bar allows lawyers to assist clients in obtaining loans from personal injury loan services with certain limitations.

Laws regarding lawsuit loans in Arizona

Arizona’s senate sought to regulate consumer lawsuit loans and cap the annual rate of interest for a lawsuit loan at 36%. The bill AZ SB 1403 (2015) was proposed but did not pass and become law. There are no statutes directly relating to lawsuit loans in Arizona.
Source: AZ SB1403 (2015)

Legal funding case law in Arizona

In Rick and Joyce Lingel v. Michael and Patricia Oblin, the court decided that the funding contract was unenforceable. However, the court stopped short of indicating that lawsuit loan contracts are unenforceable or illegal so long as they do not grant the lawsuit loan company a right or ability to direct the litigation.
Source: Rick and Joyce Lingel v. Michael and Patricia Oblin

Can a lawyer lend money to a client in Arizona?

In Arizona, an attorney cannot help a client cover living or medical expenses. However, a lawyer can help a client by advancing the costs of litigation. In cases where the client is indigent, the attorney can cover the costs of litigation completely.
Source: Ariz. R. Sup. Ct. ER 1.8

Can attorneys help clients receive lawsuit loans in Arizona?

Arizona State Bar’s ethics opinion regarding personal injury lawsuit loans indicates that lawyers may assist clients in obtaining pre-settlement funding with certain limitations. The lawyer may not have any financial interest in the loan service, may not guarantee repayment of the loan, and must maintain client confidentiality.
Source: Arizona State Bar Ethics Opinion 91-22: Financial Assistance to Client

Lawsuit loan alternatives in Arizona

Lawsuit loans are expensive. Plaintiffs in Arizona should exhaust all other options before seeking legal funding. Check out the local resources below for some ideas:

  • Utility Assistance – LIHEAP is a federally funded program administered by Arizona that helps residents with utility costs. There is an income threshold to qualify.
  • Short-Term Crisis Services – STCS provides emergency cash assistance for rental payments, mortgage payments, and utilities. Arizona residents may qualify if they have a child under the age of 18 and income less than 30% of the Federal Poverty Guidelines.
  • Arizona Food Bank Network – Website that helps Arizona residents find nearby food banks. Only requires proof of residency.
  • Arizona Public Housing Authority – Section 8 – Arizona residents may seek low-cost housing through the Housing Choice Voucher System or Project-Based Rental Assistance (public housing). Income requirements apply. Contact the Arizona Department of Housing at (602) 771-1000 for more details.