Texas (TX) Lawsuit Loans

Updated on 12/17/2021

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

Triumph Legal Funding Logo

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.

View Triumph Legal Funding’s profile

Thrivest Link Legal Funding Logo

Thrivest Link Legal Funding offers reasonable funding terms often with simple, non-compounding rates. Their expert underwriting allows them to fund larger sums than many of their competitors. They frequently approve claims for funding within 24 hours.

View Thrivest Link Legal Funding’s profile

Lawsuit loan companies located in Texas

  • Ally Lawsuit Loans – Ally Lawsuit Loans is affiliated with or closely related to Nova Legal Funding. They claim to be located in Houston, Texas.
  • Express Legal Funding – Express Legal Funding is based in Plano, Texas. They aim to offer the most affordable rates in the industry.

Regional pre-settlement funding companies that serve Texas residents

  • Baric Enterprises – Florida-based Baric Enterprises, Inc. provides non-recourse personal injury loans as well as several kinds of insurance and retirement planning services.
  • Capital Now Funding – Capital Now Funding is a Kentucky-based settlement advance company founded in 2015. They claim to offer a fixed fee model with no interest. They claim that their fees vary from state to state.
  • Cherokee Funding – Georgia-based Cherokee Funding provides pre-settlement and post-settlement plaintiff and attorney funding. They claim to fund almost all types of legal cases, so long as there is solid liability, damages, and a defendant with the ability to pay.
  • Client Legal Funding – Florida-based Client Legal Funding was founded in 2011. They offer pre-settlement funding, post-settlement funding, medical funding and attorney funding services.
  • Glofin Funding – Founded in 2002, Glofin Funding is one of the longest standing providers of personal injury funding in the United States. They serve plaintiffs nationwide with a few exceptions.
  • Momentum Funding – Headquartered in Florida, Momentum Funding focuses on personal injury and workers’ compensation lawsuit advances.
  • Signal Funding – Florida-based Signal Funding claims to provide $500 to $500,000 in pre-settlement funding with same-day service. They provide funding to injured plaintiffs nationwide. Signal has solid reviews on Google but a less impressive reputation on Yelp.
  • The Legal Funding Group – Based in Savannah, Georgia, The Legal Funding Group provides lawsuit cash advances nationwide. On their website, they quote a rate of 36% every six months.

Other pre-settlement lawsuit loan companies serving Texas residents