Updated on 12/28/2022
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.
Highly rated on Google
High Rise Financial is a California-based lawsuit loan company. They have the most five-star reviews of any funding company in the industry. In addition to pre-settlement funding, High Rise provides medical care scheduling and financing services.
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.
Regional pre-settlement funding companies that serve Texas residents
- Capital Now Funding – Capital Now Funding is a Kentucky-based settlement advance company founded in 2015. In most states, they offer pre-settlement funding with a 45% fixed-fee model. This could be advantageous for claimants expecting a lengthy legal claim.
- 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.
- Liberty Settlement Funding – Liberty Settlement Funding is a Florida-based lawsuit settlement funding company serving plaintiffs nationwide.
- 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 Funding 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.
- USClaims – 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.
Other pre-settlement lawsuit loan companies serving Texas residents
- 5 Star Legal Funding – 5 Star Legal Funding is based in New York and was founded in 2006. They advertise simple, non-compounding rates and capped repayment terms.
- Baker Street Funding – Baker Street Funding is a relatively new personal injury case funding company based in New York. Despite the company’s age, they are growing very quickly. They claim to provide rates between 1.5% and 3.4%, compounding monthly.
- Bridgeway Legal Funding – Bridgeway Legal Funding offers reasonable rates and fast processing of workers’ compensation lawsuit loans. Workers’ compensation funding is typically only available in states in which an attorney controls the settlement proceeds.
- Case Cash Funding – Case Cash Funding is a New York lawsuit lending company that claims to provide advances at 2.99%, compounded monthly with a $100 processing fee and a delivery fee ranging from $0 to $99.
- Golden Pear Funding – Golden Pear Funding is one of the largest lawsuit funding companies in the US. They are primarily focused on funding plaintiffs residing in New York. Since 2008, they have extended more than $600 million in funding.
- Mustang Litigation Funding – Mustang Litigation Funding is a 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.
- Nova Legal Funding – Nova Legal Funding is a direct funder and broker of lawsuit loans based in Los Angeles. They claim to have provided more than $70 million of pre-settlement funding to plaintiffs.
- Oasis Financial – Oasis Financial is one of the largest pre-settlement lawsuit loan companies in the United States. Oasis Financial has provided funding to more than 250,000 plaintiffs since 2003.
- Pegasus Legal Capital – Pegasus Legal Capital provides non-recourse lawsuit settlement funding to plaintiffs nationwide. They claim to provide approvals within four to six hours from receiving documentation from your law office.
- Preferred Capital Funding – Preferred Capital Funding claims to be the first pre-settlement funding provider in the US. They receive most of their business directly from referring attorneys.
- Prime Case Funding – Prime Case Funding is a legal funding provider located in New York. They have exceptional online reviews and quote a rate of 2.75% compounded monthly on their website.
- Triumph Legal Funding – New Jersey’s 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 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.