Updated on 12/17/2021
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 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.
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.
Lawsuit loan companies serving Michigan
Recommended lawsuit loan companies funding Michigan residents
US Claims 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 US Claims. to see for yourself.
Triumph Legal Funding offers competitive rates and fast, friendly service. Triumph favors rolling contracts with pre-approved monthly funding amounts to help clients budget and offer peace of mind throughout the course of their lawsuit.
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.
Lawsuit loan companies located in Michigan
- Plaintiff Investment Funding – Michigan based Plaintiff Investment Funding was founded in 2007 and helps plaintiffs nationwide.
Regional pre-settlement funding companies that serve Michigan residents
- Mustang Litigation Funding – Mustang Litigation Funding is 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.
- Oasis Financial – Oasis Financial is one of the largest pre-settlement lawsuit loan companies in the United States. Oasis has provided funding to more than 250,000 plaintiffs since 2003.
- Preferred Capital Funding – Preferred Capital claims to be the first pre-settlement funding provider in the US. They receive most of their business directly from referring attorneys.
Other pre-settlement lawsuit loan companies serving Michigan residents
- 5 Star Legal Funding
- Ally Lawsuit Loans
- Baker Street Funding
- Baric Enterprises
- Bridgeway Legal Funding
- Capital Now Funding
- Case Cash Funding
- Cherokee Funding
- Client Legal Funding
- Glofin Funding
- Golden Pear Funding
- LawStreet Capital
- Momentum Funding
- National Lawsuit Funding
- Necessity Funding
- Nova Legal Funding
- Pegasus Legal Capital
- Prime Case Funding
- Signal Funding
- The Legal Funding Group
- Tribeca Capital Group