Updated on 7/27/2021
This article helps plaintiffs and attorneys alike learn more about lawsuit loans and alternatives in Arkansas. Below you will find the following information:
Lawsuit loan alternatives in Arkansas
Lawsuit loans are expensive. In addition to budgeting, plaintiffs in Arkansas should exhaust all alternative funding options before seeking legal funding. See below for a list of organizations and resources that can help residents of Arkansas pay for living expenses such as rent, utilities, and food while they wait for their case to settle.
- Rental Assistance – use the The Arkansas Community Action Agencies Association to locate an agency in your area. Services differ by region but can include rent payment help, help with utilities, food assistance and other services.
- Arkansas Food Bank Service Map – use this to find food banks in your area. You may need to show proof of residency.
- Arkansas Food Stamps – SNAP and related programs can help Arkansas’ residents cover a portion of their food costs. Eligibility requirements include an income threshold that depends on household size and an asset threshold described here.
- Low Income Home Energy Assistance Program – Arkansas’ LIHEAP program offers two benefit programs that help pay for utilities costs. The Crisis program offers up to $500 and the Regular program can provide ongoing support. Requirements include having income at or below 60% of State Median Income and 150% of Federal Poverty Guidelines.
Lawsuit funding laws, regulation and relevant ethics opinions in Arkansas
Arkansas state law regulates lawsuit lending and imposes a rate cap. Despite this, some funding companies do claim to provide lawsuit loans to Arkansas.
Laws regarding lawsuit loans in Arkansas
See AR Code § 4-57-109 (2015). Arizona regulates consumer lawsuit lending and imposes the maximum interest rate set by the Arkansas Constitution which states that “The maximum lawful rate of interest… shall not exceed seventeen percent (17%) per annum” (Arkansas Constitution of 1874 Amendment 89, § 3)
Source: AR Code § 4-57-109 (2015)
Can a lawyer lend money to a client in Arkansas?
The Arkansas Bar does not allow lawyers to grant financial assistance to clients under any circumstance. In some cases, the attorney is allowed to advance the costs of litigation. Additionally, if the client is impoverished, the attorney can cover litigation costs.
Source: Arkansas Rules of Professional Conduct Rule 1.8(e)
Lawsuit loan companies serving Arkansas
Recommended lawsuit loan companies funding Arkansas residents
Compare Lawsuit Loans’ recommended funding companies do not operate in Arkansas at this time
Lawsuit loan companies located in Arkansas
Compare Lawsuit Loans does not currently cover any local lawsuit lending companies in Arkansas. Local funding companies interested in being included on this page may contact us at [email protected]