Updated on 6/9/2021
This article helps plaintiffs and attorneys alike learn more about lawsuit loans in Texas. Below you will find the following information:
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 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 Texas
Other pre-settlement lawsuit loan companies serving Texas 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
- High Rise Financial
- Momentum Funding
- The Legal Funding Group
- Necessity Funding
- Cherokee Funding
- Signal Funding
- Case Cash Funding
- Bridgeway Legal Funding
- Pegasus Legal Capital
- Baker Street Funding