Texas (TX) Lawsuit Loans

Updated on 8/16/2021

This article helps plaintiffs and attorneys alike learn more about lawsuit loans and alternatives in Texas. Below you will find the following information:

Lawsuit loan alternatives in Texas

Lawsuit loans are expensive. Plaintiffs in Texas should exhaust all other options before seeking legal funding. Check out the local resources below for some ideas:

  • Temporary Assistance for Needy Families (TANF) – the Texas Temporary Assistance for Needy Families (TANF) program offers short-term and one-time cash payments to qualifying families with minor children. Eligibility includes meeting income thresholds and vocational requirements.
  • Texas Medicaid – Medicaid provides access to low-cost insurance resources for qualifying Texans and their families. Eligibility depends on income and household size.
  • Texas Food Bank Network – the Texas Food Bank Network connects Texans in need with immediate access to food. This Network can also help in applying for SNAP benefits.
  • Feeding Texas – Feeding Texas is a nutrition education provider that can assist Texans in meal planning and budgeting, making healthy food choices, and the facilitation of regular physical activity.
  • Texas Housing Assistance (Rent Assistance and Eviction Diversion, etc.) – Texas Housing Assistance offers a wide range of benefits to qualifying Texans, including rent assistance programs and low-income housing options as well as eviction diversion programs to prevent homelessness.

Lawsuit funding laws, regulation and relevant ethics opinions in Texas

There are no laws directly relating to lawsuit loans in Texas. Texas common law allows pre-settlement funding and the assignment (sale) of legal claims and does not classify them as loans. Communications with legal funding companies are also protected as attorney work-product. Texas is one of the few states in which attorneys may provide advances to clients for living expenses. The vast majority of lawsuit loan companies provide advances to Texas residents.

Legal funding case law in Texas

In Anglo-Dutch Petroleum Intern. v. Haskell the court found that purchases or sales of equity in a legal case were different from loans due to contingent repayment. Most modern lawsuit lending agreements are non-recourse and do not qualify as loans in Texas.
Source: Anglo-Dutch Petroleum Intern. v. Haskell

Can a lawyer lend money to a client in Texas?

As detailed in the Texas Bar Association a lawyer may reasonably cover living and medical expenses for a client. Additionally they may cover or advance litigation expenses.
Source: Texas Rules of Professional Conduct Rule 1.8(e)

Lawsuit loan companies serving Texas

Recommended lawsuit loan companies funding Texas residents

US Claims Logo

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.

View US Claims’ profile

Thrivest Link Legal Funding Logo

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.

View Thrivest Link Legal Funding’s profile

Lawsuit loan companies located in Texas

Other pre-settlement lawsuit loan companies serving Texas residents