Updated on 3/26/2024
This article helps plaintiffs and attorneys alike learn more about lawsuit loans and alternatives in Minnesota. Below you will find the following information:
Lawsuit loan companies serving Minnesota
Below you will find a list of companies that provide funding in Minnesota. We highlight lawsuit loan companies we recommend, as well as local and regional funding companies where applicable.
Recommended lawsuit loan companies funding Minnesota residents
We recommend the following companies for plaintiffs residing in Minnesota.
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.
See our full list of recommended companies here.
Lawsuit funding laws, regulation, and relevant ethics opinions in Minnesota
Before 2020, Minnesota prohibited lawsuit loans based on the champerty doctrine. In 2020 however the court decided that lawsuit loans were not champertous. Some pre-settlement funding companies now provide advances to Minnesota residents.
Legal funding case law in Minnesota
Prospect Funding Partners provided pre-settlement funding to Maslowski. At the conclusion of the case, Prospect Funding Partners was not repaid. Though common law prohibited lawsuit loans in the past, the Minnesota Supreme Court reversed precedent. This reopened the door to lawsuit funding for MN residents.
Source: Maslowski v. Prospect Funding Partners LLC
Can a lawyer lend money to a client in Minnesota?
Lawyers cannot subsidize or pay for lawsuits brought on by clients. A lawyer can advance the costs of litigation to the end of the trial, with repayment being based on the success of the case.
Source: Minnesota Rules of Professional Conduct 1.8(e)
Lawsuit loan alternatives in Minnesota
Lawsuit loans are expensive. Plaintiffs in Minnesota should exhaust all other options before seeking legal funding. Check out the local resources below for some ideas:
- Minnesota General Assistance (GA) Program – the Minnesota GA program provides financial support to residents who can’t work. Asset limits may apply in order to be eligible for GA assistance.
- Food and Nutrition Assistance (SNAP, MFAP, and others) – a page that lists programs that low-income Minnesotans can use to access food. This includes SNAP, formerly known as food stamps, and MEAP, to help food-insecure residents of the state.
- Minnesota’s Housing and Income Assistance Programs – a directory of the state’s housing and income assistance programs, including the GA, Minnesota Supplemental Aid (MSA), and the
- Family Homeless Prevention and Assistance Program (FHPAP) – the FHPAP program is intended to divert funds to assist residents of Minnesota who are homeless or at risk of becoming homeless.
- Low Income Energy Assistance Program – the EAP provides grants to Minnesota residents who need assistance with their energy bills. In order to receive a grant, applicants must earn no more than 60 percent of the state median income.