Kentucky (KY) Lawsuit Loans

Updated on 6/14/2021

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

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 to not require this.
Source: Kentucky Rules of Professional Conduct 1.8(e)

Lawsuit loan companies serving Kentucky

Recommended lawsuit loan companies funding Kentucky residents

Compare Lawsuit Loans’ recommended funding companies do not operate in Kentucky at this time

Lawsuit loan companies located in Kentucky

Other pre-settlement lawsuit loan companies serving Kentucky residents