Updated on 3/26/2024
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 companies serving Texas
Below you will find a list of companies that provide funding in Texas. We highlight lawsuit loan companies we recommend, as well as local and regional funding companies where applicable.
Recommended lawsuit loan companies funding Texas residents
We recommend the following companies for plaintiffs residing in Texas.
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.
Our pick for fast lawsuit settlement loans
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.
See our full list of recommended companies here.
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 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.