Updated on 3/26/2024
This article helps plaintiffs and attorneys alike learn more about lawsuit loans and alternatives in Michigan. Below you will find the following information:
Lawsuit loan companies serving Michigan
Below you will find a list of companies that provide funding in Michigan. We highlight lawsuit loan companies we recommend, as well as local and regional funding companies where applicable.
Recommended lawsuit loan companies funding Michigan residents
We recommend the following companies for plaintiffs residing in Michigan.
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.
Our pick for fast lawsuit settlement loans
Thrivest Link Legal Funding offers reasonable funding terms often with simple, non-compounding rates. Their expert underwriting allows them to fund larger sums than many of their competitors. They frequently approve claims for funding within 24 hours.
See our full list of recommended companies here.
Lawsuit funding laws, regulation, and relevant ethics opinions in Michigan
Michigan state law does not forbid non-attorneys from providing lawsuit loans. However, courts have voided funding agreements, declaring them loans and usurious. Despite this, most lawsuit loan companies provide funding in MI.
Laws regarding lawsuit loans in Michigan
While attorneys are prohibited from engaging in champerty, non-attorneys may engage in pre-settlement legal funding.
Source: Michigan Compiled Laws Annotated § 600.919
Legal funding case law in Michigan
In Lawsuit Financial, L.L.C. v. Curry however, the court decided that pre-settlement funding was a loan and exceeded state interest rate caps of 7%.
Source: Lawsuit Financial, L.L.C. v. Curry
Can a lawyer lend money to a client in Michigan?
In Michigan, attorneys cannot help clients financially. However, attorneys can advance court expense, or cover court expenses depending on whether or not the client is indigent.
Source: Michigan Rules of Professional Conduct 1.8(e)
Can attorneys help clients receive lawsuit loans in Michigan?
The MI Bar has opined on a litigation funding contract in which control of the litigation was given over to the lender.
Source: RI-321
Lawsuit loan alternatives in Michigan
Lawsuit loans are expensive. Plaintiffs in Michigan should exhaust all other options before seeking legal funding. Check out the local resources below for some ideas:
- Family Independence Program (FIP) – Michigan’s Family Independence Program provides temporary cash relief to help families pay for basic living expenses.
- Food Assistance Program (FAP) Group – the state’s FAP program provides federal funds to families who meet income requirements to help them afford food.
- Michigan State Housing Development Authority Assistance – the Michigan Housing Development Authority offers programs like housing choice vouchers (public housing), rent assistance, and help with loan applications for state residents in need.