Updated on 12/28/2022
This article helps plaintiffs and attorneys alike learn more about lawsuit loans and alternatives in Connecticut. Below you will find the following information:
Lawsuit loan companies serving Connecticut
Below you will find a list of companies that provide funding in Connecticut. We highlight lawsuit loan companies we recommend, as well as local and regional funding companies where applicable.
Recommended lawsuit loan companies funding Connecticut residents
Compare Lawsuit Loans’ recommended funding companies do not operate in Connecticut at this time.
Lawsuit loan companies located in Connecticut
Compare Lawsuit Loans does not currently cover any local lawsuit lending companies in Connecticut. Local funding companies interested in being included on this page may contact us at [email protected]
Regional pre-settlement funding companies that serve Connecticut residents
- Baker Street Funding – Baker Street Funding is a relatively new personal injury case funding company based in New York. Despite the company’s age, they are growing very quickly. They claim to provide rates between 1.5% and 3.4%, compounding monthly.
- Bridgeway Legal Funding – Bridgeway Legal Funding offers reasonable rates and fast processing of workers’ compensation lawsuit loans. Workers’ compensation funding is typically only available in states in which an attorney controls the settlement proceeds.
- Case Cash Funding – Case Cash Funding is a New York lawsuit lending company that claims to provide advances at 2.99%, compounded monthly with a $100 processing fee and a delivery fee ranging from $0 to $99.
- Golden Pear Funding – Golden Pear Funding is one of the largest lawsuit funding companies in the US. They are primarily focused on funding plaintiffs residing in New York. Since 2008, they have extended more than $600 million in funding.
- Pegasus Legal Capital – Pegasus Legal Capital provides non-recourse lawsuit settlement funding to plaintiffs nationwide. They claim to provide approvals within four to six hours from receiving documentation from your law office.
- Prime Case Funding – Prime Case Funding is a legal funding provider located in New York. They have exceptional online reviews and quote a rate of 2.75% compounded monthly on their website.
Other pre-settlement lawsuit loan companies serving Connecticut residents
- Cherokee Funding – Georgia-based Cherokee Funding provides pre-settlement and post-settlement plaintiff and attorney funding. They claim to fund almost all types of legal cases, so long as there is solid liability, damages, and a defendant with the ability to pay.
- Glofin Funding – Founded in 2002, Glofin Funding is one of the longest-standing providers of personal injury funding in the United States. They serve plaintiffs nationwide with a few exceptions.
- Momentum Funding – Headquartered in Florida, Momentum Funding focuses on personal injury and workers’ compensation lawsuit advances.
- Mustang Litigation Funding – Mustang Litigation Funding is a relatively new but quickly growing lawsuit funding company based in Minnesota. They have provided more than $50 million in funds to plaintiffs and attorneys since 2018.
- Nova Legal Funding – Nova Legal Funding is a direct funder and broker of lawsuit loans based in Los Angeles. They claim to have provided more than $70 million of pre-settlement funding to plaintiffs.
- Signal Funding – Florida-based Signal Funding claims to provide $500 to $500,000 in pre-settlement funding with same-day service. They provide funding to injured plaintiffs nationwide. Signal Funding has solid reviews on Google but a less impressive reputation on Yelp.
- The Legal Funding Group – Based in Savannah, Georgia, The Legal Funding Group provides lawsuit cash advances nationwide. On their website, they quote a rate of 36% every six months.
Lawsuit funding laws, regulation, and relevant ethics opinions in Connecticut
In 2022, The Banking Commissioner of Connecticut investigated the activities of a legal funding company and issued a cease and desist letter. As a result, many companies now choose not to provide lawsuit loans to Connecticut residents. Connecticut common law also prohibits providing lawsuit funding for litigation expenses in exchange for a share of the recovery from the case. The bar does not allow attorneys to make or guarantee loans to clients for living expenses. Most legal funding companies provide non-recourse funding for living expenses in CT that is not structured as a loan.
Legal funding case law in Connecticut
Connecticut courts refused to uphold a litigation financing agreement between a property owner and a third party. The court stated that such assistance is permissible only when the third party does not share in the proceeds of the litigation.
Source: Rice v. Farrell
Can a lawyer lend money to a client in Connecticut?
Lawyers are not allowed to provide financial assistance to clients, except to pay court costs and litigation expenses. Repayment of advanced case expenses must be contingent upon the success of the case.
Source: Connecticut Rules of Professional Conduct Rule 1.8(e)
Can attorneys help clients receive lawsuit loans in Connecticut?
While Connecticut lawyers may not make nor guarantee loans to their clients for living expenses, standard lawsuit lending agreements do not require the attorney to guarantee the loan.
Source: Connecticut Rules of Professional Conduct 1.8(e)
Lawsuit loan alternatives in Connecticut
Lawsuit loans are expensive. Plaintiffs in Connecticut should exhaust all other options before seeking legal funding. Check out the local resources below for some ideas:
- Connecticut 211 – a cost-free program that will connect you to the health and human services programs in your area to get you the assistance you need. Call anytime, 24/7, to give or get help for housing, food assistance, medical access, and more.
- Rental Assistance Program (RAP) – low-income families can apply for a RAP certificate if their income is less than 50% of their area’s annual median income. Participants are responsible for finding a safe and qualified private rental, including their current resistance, where the landlord agrees to rent to them under the terms of the program.
- CT Section Housing 8 – federally funded program that provides housing vouchers to qualified very low-income families. The subsidy is paid directly to the landlord from the managing public housing agency.
- Connecticut Utilities Assistance – provides energy and utility assistance for families. Apply through your local Operation Fuel agency.
- Emergency Food Resources – lists the various programs available to assist with emergency food needs and regular meals. The resources include food pantries, food stamps (SNAP), and home-delivered meals.