Updated on 12/17/2021
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 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.
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 companies serving Minnesota
Recommended lawsuit loan companies funding Minnesota 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.
Lawsuit loan companies located in Minnesota
- 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.
Regional pre-settlement funding companies that serve Minnesota residents
- 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.