Illinois (IL) Lawsuit Loans

Updated on 6/5/2024

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

Lawsuit loan companies serving Illinois

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

Recommended lawsuit loan companies funding Illinois residents

We recommend the following companies for plaintiffs residing in Illinois.

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 Illinois

Illinois regulates lawsuit funding as loans, subject to IL UCCC and imposes a rate cap of 36% APR and a funding cap of $40,000. Only those companies licensed with the state of Illinois can provide funding to IL residents. The Illinois State Bar Association allows attorneys to participate in lawsuit cash advance agreements on behalf of their clients. This regulation limits the number of funding companies that service Illinois.

Laws regarding lawsuit loans in Illinois

The most recent bill directly relating to consumer lawsuit loans in IL (IL SB3391 (2015)) did not pass in the Senate. Illinois treats lawsuit cash advances as loans, subject to the Consumer Installment Loan Act. This act imposes a rate cap of 36% APR. That means that funding companies typically use a daily interest rate as opposed to 3 or 6 month increments. Furthermore, lawsuit loan companies may not fund in excess of $40,000 per claim.
Source: (205 ILCS 670/) Consumer Installment Loan Act.

Can a lawyer lend money to a client in Illinois?

Lawyers in Idaho can advance the cost of litigation or completely cover it depending on the circumstance. Other than this, attorneys cannot grant loans.
Source: Illinois State Bar Rules of Professional Conduct 1.8(e)

Can attorneys help clients receive lawsuit loans in Illinois?

Attorneys may assist clients with lawsuit lending arrangements, even for payment of attorneys fees, so long as they “protect the client’s confidences and meet [their] fiduciary obligation of complete disclosure.”
Source: Illinois State Bar Association Opinion on Professional Conduct No. 92-9

Lawsuit loan alternatives in Illinois

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

  • Southern Illinois Food Pantry Network – a list of food pantries – select one that is nearest to you. You may need to provide proof of your residency to use this program.
  • Greater Chicago Food Banks – offers traditional food bank access as well as mobile services. They have a number of programs available for children, older adults, and veterans.
  • Northern Illinois Food Banks – use this resource to locate food banks within the northern region. You can find locations as well as the latest news and updates on all available programs.
  • Rental Assistance Programs in Illinois – offers a list of available resources that can help you pay for rent and utilities. Ongoing assistance programs and emergency help for those affected by economic hardship are both featured.
  • Help Paying For Utilities in Illinois – Illinois’ version of the federal LIHEAP program offers energy assistance to households that meet income requirements. If you are unable to pay for heating or cooling, LIHEAP offers grants that are paid directly to your utility or fuel provider. Some households that qualify for LIHEAP may also be eligible for a Percentage of Income Payment Plan (PIPP) that assists with bill pay for certain utilities.