Updated on 12/28/2022
This article helps plaintiffs and attorneys alike learn more about lawsuit loans and alternatives in Kentucky. Below you will find the following information:
Lawsuit loan companies serving Kentucky
Below you will find a list of companies that provide funding in Kentucky. We highlight lawsuit loan companies we recommend, as well as local and regional funding companies where applicable.
Recommended lawsuit loan companies funding Kentucky residents
Highly rated by consumers
Capital Now Funding is a Kentucky-based settlement advance company founded in 2015. They claim to offer a 45% fixed fee model with no interest. This could be advantageous for claimants expecting a lengthy legal claim.
Lawsuit loan companies located in Kentucky
- Capital Now Funding – Capital Now Funding is a Kentucky-based settlement advance company founded in 2015. In most states, they offer pre-settlement funding with a 45% fixed-fee model. This could be advantageous for claimants expecting a lengthy legal claim.
Regional pre-settlement funding companies that serve Kentucky residents
- Ally Lawsuit Loans – Ally Lawsuit Loans is affiliated with or closely related to Nova Legal Funding. They claim to be located in Houston, Texas.
- 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.
Other pre-settlement lawsuit loan companies serving Kentucky residents
- 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.
- 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.
Lawsuit funding laws, regulation, and relevant ethics opinions in Kentucky
Common law in Kentucky regards lawsuit lending contracts as champertous and state law renders champertous contracts void. Despite this, some legal funding companies claim to provide funding to Kentucky residents.
Laws regarding lawsuit loans in Kentucky
See KY Rev Stat § 372.060 (2013). Kentucky state law prohibits champerty or the practice of a third-party with no previous interest in a lawsuit securing a financial interest in a lawsuit. Case law has upheld the statute.
Source: KY Rev Stat § 372.060 (2013) Champertous contracts and conveyances void.
Legal funding case law in Kentucky
Boling received funding from Prospect. Boiling sued Prospect in Kentucky, asserting that the funding violated champerty laws. Ultimately, after appeals, the court took the position that legal funding violates usury and champerty statutes in Kentucky.
Source: Christopher Boling v. Prospect Funding Holdings
Can a lawyer lend money to a client in Kentucky?
As stated in the Kentucky rules of Professional Conduct, Kentucky lawyers cannot grant their clients financial assistance. However, they can advance the court advances. In certain situations, the lawyer may court the costs of litigation.
Source: Kentucky Rules of Professional Conduct 1.8(e)
Can attorneys help clients receive lawsuit loans in Kentucky?
Attorneys may not guarantee loans to clients. Standard funding agreements do not require this.
Source: Kentucky Rules of Professional Conduct 1.8(e)
Lawsuit loan alternatives in Kentucky
Lawsuit loans are expensive. Plaintiffs in Kentucky should exhaust all other options before seeking legal funding. Check out the local resources below for some ideas:
- Get Help Paying for Rent or Subsidized Housing in KY – a program sponsored by the Kentucky Housing Corporation that provides housing vouchers (public housing) for low-income Kentucky residents to help afford a place to live. Income requirements apply to be eligible for this program.
- Food Banks in Kentucky – use this site to find food banks throughout the Commonwealth of Kentucky. Feeding Kentucky also offers specialized programs for kids and sources farm-grown produce for citizens in need.
- Utility Payment Assistance Programs – a list of programs developed to help low-income Kentucky residents pay their utility bill programs can be found here. These programs may differ in their eligibility requirements.
- Get Help Paying For Food in Kentucky (SNAP) – SNAP (formerly known as food stamps) is a program that helps eligible families buy healthy meals at local grocery stores. There is a list of requirements to be eligible, including citizenship, work registration, and income.