Updated on 8/11/2021
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.
Thrivest Link Legal Funding offers fair terms with a fast, efficient funding process. Many companies claim to offer same-day or 24-hour lawsuit loans but Thrivest Link Legal Funding often actually makes it happen.
Lawsuit loan companies located in Michigan
Other pre-settlement lawsuit loan companies serving Michigan residents
- Oasis Financial
- Glofin Funding
- Nova Legal Funding
- Ally Lawsuit Loans
- LawStreet Capital
- Golden Pear Funding
- Prime Case Funding
- Preferred Capital Funding
- National Lawsuit Funding
- Momentum Funding
- The Legal Funding Group
- Necessity Funding
- Cherokee Funding
- Signal Funding
- Case Cash Funding
- Bridgeway Legal Funding
- Pegasus Legal Capital
- Baker Street Funding
- Baric Enterprises
- Tribeca Capital Group
- Capital Now Funding