What are Texas lawsuit loans?
Lawsuit loans in Texas, also known as pre-settlement funding or legal financing, are a form of financial assistance available to individuals involved in civil lawsuits in Texas. These loans provide upfront cash to cover your expenses while a lawsuit is pending. Unlike traditional loans, pre-settlement funding in Texas operates as a non-recourse debt. That means that the lender only gets repaid if you win or settle the lawsuit after you receive your financial compensation. You’re not personally responsible for repaying the funds if you lose your case, and your credit score won’t be affected.
Lawsuit loan rates vary and can be higher than traditional loans due to the inherent risks involved on the lender. At Baker Street Funding, we are committed to responsible lending practices and offer competitive rates with transparent terms. Before making a borrowing decision, we encourage you to explore all your financing options, including traditional loans, borrowing from friends and family, and consulting with your attorney.
When to consider pre-settlement funding in Texas—financial relief during your lawsuit.
Litigation in Texas can be a long and costly process. Injury cases often lead to unexpected medical bills, loss of income, and other financial burdens. If you’re facing urgent financial challenges like debt collection, eviction notices, foreclosure, or repossession, pre-settlement legal funding can provide a crucial remedy.
These funds can help cover essential living expenses, including:
- Rent or mortgage payments
- Groceries and utilities
- Transportation costs
- Medical expenses
Since repayment is contingent on winning your case, and approval is based solely on the merits of your case, pre-settlement funding is an excellent option if you:
- Need financial support but can’t qualify for traditional loans due to poor credit, lack of collateral, or low income.
- Have a claim that’s delaying your financial recovery, and you’re out of work.
- Are involved in a complex case with multiple injuries or claims, particularly those involving third-party negligence, which can significantly extend the claims process under Texas Civil Practice and Remedies Code Section 33.001.
Beyond financial relief, a pre-settlement cash advance also provides peace of mind (Research on financial difficulties and mental health *¹). Funding lets you focus on your recovery and legal fight, not your bills. Feel less stressed, boost your mental well-being, and gain the confidence to make smart choices about your legal battle, whether that is mediation, negotiations, or even trial.
Disclosure: Lawsuit loans for personal injury plaintiffs are not intended to pay for legal expenses. Always discuss your financial situation with your attorney and carefully consider the terms and costs of any loan offer.
Ready to ease the financial strain of your Texas lawsuit? We are here to assist you on your road to recovery—Apply now for a lawsuit loan and start your journey toward financial stability today.
How to apply for a lawsuit loan: get cash quickly and easily.
With Baker Street Funding, you can get money from your Texas lawsuit quickly—often in as little as 24 hours. No credit checks or employment verification required. Our application process is simple, fast, and hassle-free, so you can take care of any urgent bills or expenses right away.
Apply for Funds
Kickstart the lawsuit loan application process by applying online or giving us a call at (888) 711-3599.
Expert Review
You'll hear back from us with a decision as soon as your attorney responds with the details of your case.
Receive Cash
Once you're approved, you and your attorney will receive the lawsuit loan contract. Sign it, and the funds could be in your hands in as little as 2 hours.
Need settlement cash now? That’s exactly why Baker Street Funding’s pre-settlement loans exist—because we know, when you’re in a tough spot, every minute counts. (The average legal funding customer in Texas receives their settlement funds in less than 4 hours post-approval).
No Upfront Fees | No Credit Checks | No Risk | Fast Cash Approval
After you get your funds, the loan is collateralized by your anticipated settlement, meaning the legal funding company purchases a portion of your future recovery. Should the lawsuit end in your favor, the loan is settled out of the recovery. If you don’t win, you are not obligated to repay us in any way—no strings attached.
Eligibility for Pre-Settlement Funding in Texas: Do You Qualify?
Case Merits, Not Credit Scores, Determine Eligibility for Lawsuit Loans in Texas.
Whatever city you live in—Houston, Dallas, San Antonio, Austin, El Paso, or anywhere else in the state—the requirements for obtaining a lawsuit loan are less strict because Texas is a plaintiff-friendly state. Here’s a quick checklist to see if you qualify for lawsuit funding:
- Case Merit: You must have a valid civil lawsuit in Texas with a high success rate to recover compensation.
- Minimum Case Value: Your case must have a minimum value of $50,000.
- Insurance Coverage: We require the defendant to have insurance coverage.
- Case Documentation: We may require medical records, accident reports, expert testimony, evidence, and other relevant documents.
- Qualified Attorney’s Approval: You must have a licensed Texas attorney representing you. Your lawyer must also approve of third-party funding for your personal injury claim.
Feeling unsure about your eligibility for pre-settlement funding? Many Texans have faced similar questions. Let our experts help you understand the process and determine if pre-settlement funding is right for your case. You focus on winning your lawsuit; we’ll handle the financial speed bumps.
What types of Texas lawsuits are eligible for lawsuit settlement loans?
Texas law recognizes many types of personal injury cases that may be eligible for lawsuit loans. Whether you are dealing with a trucking accident case in Fort Worth, a military medical malpractice lawsuit in San Antonio, a construction accident in Dallas, a commercial vehicle accident case in Houston, or an oil field injury in the Permian Basin, Baker Street Legal Funding provides pre-settlement loans for a wide range of civil lawsuits in Texas.
Our personal injury lawsuit loans can help you with a wide range of cases, including (but not limited to):
- Wrongful death claim funding.
- Nursing home neglect and abuse related to bedsore claims.
- Car accident case funding including pedestrian, bus, and bicycle accidents.
- Medical malpractice funding, including surgical error, and misdiagnosis cases.
- Military lawsuits like whistleblower retaliation, MST, or medical malpractice at military hospitals.
- Work accident loans involving cranes, oil and gas extraction accidents, such as oilfield-related explosions and fires or pipeline injuries.
- Construction accident loans involving injuries in refineries and chemical plants, falls from roofs, scaffolding, and ladders.
- Mass tort litigation funding, including those related to pollution, land use, and natural resource management.
- Product liability claims including defective drilling rigs, faulty pipelines, malfunctioning agricultural machinery, dangerous drugs, medical devices, and other bad consumer products.
- Premises liability lawsuits include accidents on ranches and farms, or negligent security claims involving assaults or injuries in bars, drowning or even near-drowning incidents.
Other cases we support include
- Qui Tam cases.
- Mass tort.
- Settled cases.
We also fund cases involving a variety of injuries, including:
- Severe TBI
- Broken bones
- Fire and burn injuries
- Spinal cord injuries
- Loss of limb
- Amputations
- Catastrophic injuries
- Organ damage
- Crush injuries
- Orthopedic injuries
- Neurological injuries
- Scarring or disfigurement injuries.
How Texas Personal Injury Laws and Insurance Regulations Impact The Funding Evaluation and Approval Amounts.
Calculating Your Lawsuit Loan Amount in TX.
The potential value of your personal injury claim in Texas is a key factor in determining how much pre-settlement funding you can receive. Generally, the higher the value of your claim, the more funding you may be eligible for.
At Baker Street Funding, we provide non-recourse loans for up to 10% of your expected recovery. For instance, if your Texas personal injury lawsuit settlement is valued at $50,000, you may receive up to $5,000 in legal funding. If you have a settled insurance claim, we may provide up to 20%.
However, it’s important to know that pre-settlement funding in Texas is not governed by personal injury laws or any specific state agency. This is a common misconception, so be sure to understand the difference.
What does this mean for you?
- More options: You have greater flexibility in finding a funding provider that meets your needs.
- No state-imposed limits: The amount of funding you can receive isn’t restricted by state regulations.
Because pre-settlement funding operates independently, it’s crucial to work with a reputable funding provider who is transparent about the process and fees.
Here’s a table summarizing key Texas laws and how they might affect your funding eligibility and loan offers:
Factor | How Texas Laws Affect Your Lawsuit Loan Offer |
---|---|
Caps on Damages | Caps on non-economic damages in medical malpractice cases at $250,000 per person, with an overall cap of $500,000. Plus, non-economic damages for other personal injury is capped up to $750,000. |
Punitive Damages Caps | Texas caps on punitive damages limit your recovery funds at $200,000 or twice the amount of economic damages, whichever is greater. (Not permitted for injury government lawsuits). |
Government Entity Caps | Damage caps for the state government are $250,000 per person and $500,000 per incident. Local gov: $100,000 per person and $300,000 per incident. ** Cash advances in Texas are subject to caps under the Texas Tort Claims Act, with strict notice requirements. |
Texas is an At-Fault State: Modified Comparative Negligence (51% Rule) | Being in an at-fault state means that the driver who is determined to be responsible for causing the accident is financially responsible for the damages. Your funding amount will be determined by the percentage of your fault (50% or less.) If you’re 51% or more at fault, you cannot get money for your lawsuit. |
Statute of Limitations | Texas law gives you 2 years from the date of injury to file a lawsuit. You might be eligible for minimum loan funding if the evidence is strong. |
Liability Insurance Requirements in Texas | Minimum coverage: $30,000 per injured person, $60,000 per accident, $25,000 for property damage. If the defendant’s insurance policy is limited, your funding potential might also be limited. Consider identifying additional policies (e.g., employer policies, umbrella coverage) to increase your overall lawsuit funds). |
Texas (PIP) Insurance | The minimum PIP coverage that must be offered is $2,500 per person, but policyholders can choose higher limits. |
Uninsured or Underinsured Motorist Coverage (UM/UIM) | (Optional). Minimum liability coverage is $30,000 per injured person and $60,000 per accident. While UM/UIM coverage is optional, having it can increase cash advance amounts. |
Inter-Policy Stacking State | If you have separate UM/UIM coverage on more than one vehicle under different policies, you can combine them to cover your damages and increase the total settlement and funding amount available. However, insurers can lawfully limit or exclude stacking through policy clauses, which will limit your loan amount. |
Umbrella Policy | Umbrella policy in TX typically begins at approximately $300,000 and extends up to at least $1 million. |
Joint and Several Liability. (Texas Civil Practice & Remedies Code, Sec. 33.013) | In cases with multiple tortfeasors (faulty parties), a defendant is only responsible for paying the full amount if found to be 51% or more at fault. Otherwise, each defendant is liable for their own percentage of the damages. Cases where no defendant meets the 51% threshold can lead to more conservative funding amounts. |
Liens and Subrogation Rights | Medical providers and insurers may place liens on settlements to recover costs. Pending liens and subrogation rights on your Texas settlement reduce the valuation of a lawsuit for a loan. |
Need money fast? Baker Street Funding provides free case evaluations to help you understand how much you can borrow with a pre-settlement loan. Contact us today at (888) 711-3599.
Can a Texas lawsuit loan help level the playing field against insurance tactics?
Insurance companies often use delay tactics to pressure personal injury plaintiffs into accepting lower settlements.
In Texas, if you’re dealing with a soft tissue injury, the typical personal injury settlement is about $20,000. For moderate injuries, you’re looking at around $45,596, and it’s the same for more serious ones. But if you’re dealing with serious injuries like amputations, spinal cord injuries, traumatic brain injuries, or sadly, even fatalities, settlements can easily exceed a million dollars.
In spite of these statistics, personal injury lawsuits often require a significant amount of time and effort. From collecting evidence to negotiating with insurance companies, the legal process in Texas can extend for several months or even years.
The Texas Unfair Insurance Practices Act, part of the Texas Insurance Code, is there to protect you from unfair insurance practices. Nonetheless, insurance companies often use delay tactics to pressure personal injury plaintiffs into accepting lower settlements. These strategies can be particularly harmful to those with catastrophic injuries. Texas lawsuit funding can be a lifeline during these difficult circumstances, providing the support you need to:
- Settle all your bills and seize the additional time to build a stronger case and negotiate more aggressively.
- Pursue fair compensation and reject lowball offers from the insurance company due to financial hardship.
With your finances in order, handling your case becomes easier, and the road to fair compensation becomes more promising.
Important to Remember: While legal funding can provide a financial safety net, that does not mean you’re sure to win big or even win at all. The final outcome of your civil claim depends on how strong it is and your lawyer’s legal strategy. Be cautious of any lawsuit loan company promising a maximum settlement payout—that’s not a promise they can legally make.
Texas lawsuit loans and legal compliance: transparency, Ethical Standards and consumer protection.
What are the lawsuit loan regulations in Texas?
Texas does not regulate pre-settlement loans as a financial product. In fact, In Texas, lawsuit loans are classified as “contingent investments,” not actual loans, because they work under the same non-recourse funding agreement; you only repay the loan if you win or settle your case.
This distinction means that third-party funding is not subject to the same regulations that govern conventional loans, such as those imposed by the Texas Office of Consumer Credit Commissioner (OCCC) or the Texas Department of Banking.
The validation of litigation funding as a legitimate financial tool for plaintiffs was further established by a legal precedent with the Anglo-Dutch Petroleum International, Inc. v. Haskell case. In 2009, the Texas Supreme Court ultimately ruled that a legal funding arrangement did not violate Texas law as it did not interfere with the attorney-client relationship.
However, even without explicit legal mandates, the legal funding industry in Texas is still subject to:
- Providing non-recourse financing agreements that must not increase or prolong litigation.
- Investors in these agreements must not receive repayment unless the plaintiff wins, which also makes them cautious about investing in frivolous lawsuits.
- Investors must assess the merits and risks before investing in lawsuits.
Baker Street Funding: Committed to Compliance with the Texas Deceptive Trade Practices Act (DTPA)
While there are NO government regulations for pre-settlement funding companies in Texas, Baker Street Funding prioritizes full compliance with the Texas Deceptive Trade Practices Act (DTPA)*, ensuring all agreements and terms are transparent and easy to understand. Our fair lending and consumer protection practices prevent Texas plaintiffs from predatory or deceptive actions, which sets us apart from some lawsuit loan companies that may not adhere to the same standards.
- Truthful Advertising: We accurately represent our litigation finance services and avoid misleading statements.
- Transparent Lawsuit Loan Contracts: Our non-recourse alternative funding agreements clearly outline all terms and conditions in plain language.
- Upfront Disclosure of all Costs: The total cash advance, and repayment amount, with no hidden charges, penalties, or undisclosed costs—no surprises in the fine print.
Adherence to Industry Best Practices: Our Commitment to Ethical Legal Funding
Privacy and integrity are at the core of our services at Baker Street Funding. We keep all your personal and financial information completely confidential, and your attorney-client privilege stays unaffected. Our legal loans are designed to uphold your privacy, and we have strict policies and advanced security measures in place to protect your information.
All case monitoring is handled with the utmost discretion in collaboration with your Texas-based counsel, and we don’t disclose the identities of our clients and legal associates.
Additionally, we guarantee:
- No Solicitation or Harassment. We never engage in unsolicited contact or harassment.
- Cancellation Rights. You have the right to cancel your lawsuit loan agreement within five days without penalties.
No Referral Commissions. We neither offer nor accept any compensation or incentives for recommendations from attorneys or their employees in Texas.
We also guarantee:
- No Credit Reporting. We do not report consumers to credit bureaus if insufficient funds are not available to repay the advance.
- No Legal Advice. We do not offer legal advice or recommendations about your case or attorney.
- No Case Interference. All legal decisions are exclusively between you and your attorney. We have no influence over the management, settlement, or resolution of your case.
Ready to feel the difference? In Texas, straight talk is valued. At Baker Street Legal Funding, you get just that—no hidden fees, no financial shocks. Because transparency is at the heart of our services.
The best lawsuit loan companies won’t put your settlement money at risk.
Choosing Baker Street Legal Funding means you’re choosing a reputable lawsuit loan company that’s dedicated to your settlement success firsthand. Be part of the thousands in Texas and throughout the country who have transformed their lives during the lawsuit process with Baker Street Funding. Our 5-star reviews and our Texas track record can speak for itself.
The Texas advantage: a local funding company.
At Baker Street Funding, we have a deep understanding of Texas personal injury law and local procedures, which means we can make funding decisions quickly and accurately. Our underwriters uphold the highest standards of professionalism and constantly demonstrate integrity, independence, and personal dignity in accordance with the Texas Bar Association. Our strong connections with attorneys across Texas helps us simplify the communication and approval process.
- Same-Day Pre-Settlement Loans in Texas. Access the money you need as early as two hours after you and your attorney accept the terms of your loan.
- Personalized Assistance. Work with a dedicated funding expert who understands and responds to your needs every step of the way.
- Generous Funding Amounts. Whether you need $1,000 or $500,000, you can claim up to 20% of your anticipated settlement in Texas. Choose between ongoing monthly advances or a lump-sum payment.
Competitive rates that save you money.
When choosing for the best pre-settlement funding companies in Texas, consider not only the interest rate but also whether the lender limits costs. This way, you can retain more of your money when you win and worry less about costs.
- Looking for a low-rate settlement loan in Texas? Baker Street Funding keeps it low by offering simple, fixed interest rates starting at 2.95% monthly. No compound interest rates, no complex math.
- Worried about your lawsuit dragging on? Our rates are capped for up to three years to protect your future settlement from indefinite accrual beyond that cap.
Remember to borrow only what is necessary to cover your basic needs. Borrowing wisely can minimize interest accumulation and maximize your financial recovery.
* Stronger cases with a high likelihood of winning often qualify for lower rates.
No Upfront Fees | No Penalties | No Hidden Costs
It's non-recourse funding, no risk to your credit, zero stress.
- Lose your case? You owe us nothing. That’s the Baker Street Funding guarantee. Our non-recourse loans in Texas mean you only repay if you win and Baker Street Funding bears the risk.
- No credit checks, no problem. We don’t care about your credit score. Need cash now? We look at your case, not your credit history.
- Your assets are safe. Your home, your car, your belongings – they’re all protected, regardless of your case outcome.
Get the funds you need today and breathe easy knowing you’re protected with Baker Street Funding.
Leading provider of customized lawsuit funding solutions at different stages of your Texas case.
Providing Texas plaintiffs with a variety of financing options.
Avoid Delaying Critical Medical Treatment
Our medical lien legal funding solutions offer direct funding to medical providers so you can get the care you need right away.
Switch & Save with Loan Buyouts
Is another lender charging you a high rate? Use our lawsuit funding buyout program to consolidate your current loan into a single contract at a lower rate.
Texas Financing Available After Your Win
Post-settlement funding in Texas gives you the flexibility to borrow money from your pending settlement check after you have won your case, but the insurance payment is delayed.
Need Additional Funding Down the Line?
No Problem. With Baker Street Funding, you can apply for multiple settlement advances as your case evolves.
Attorney Funding for Complex Litigation in Texas.
Handling complex cases like medical malpractice, mass tort, class action, or product liability? Our case cost funding helps Texas attorneys secure the financial resources needed for these demanding cases.
Plaintiff Funding for Your TX Clients
Our plaintiff funding solutions in Texas offer attorneys the ability to secure discounted rates for their clients. These funds can help cover essential living expenses, medical bills, and other necessities at a reduced cost.
Apply for a lawsuit loan now—financial relief is within reach.
Don’t let financial difficulties slow you down in your legal battle. Apply for a Texas settlement loan now and obtain your cash advance the day you get approved. We stand by our promise: you repay only if you win.No Upfront Fees | No Credit Checks | No Risk | Fast Approval
Texas lawsuit loans: your questions answered.
Do you have questions about pre-settlement lawsuit loans? We’ve got answers. Our FAQ section covers a wide range of topics, including eligibility requirements, costs, repayment terms, and more.
What is pre-settlement funding in Texas?
A lawsuit loan, also known as a pre-settlement loan or legal funding, is a type of financing that allows a person to borrow money against their expected settlement from a lawsuit. These loans can be used to cover living expenses or other costs while waiting for a case to settle.
How do lawsuit loans work?
The process is simple. After reviewing your case and eligibility, we’ll offer a funding amount. Once you and your attorney complete the non-recourse funding agreement, you’ll receive the funds upfront. If you win your lawsuit, your attorney will deduct the agreed-upon amount from your settlement or award before you receive the rest. If you lose, you owe us nothing.
How much money can I borrow from my lawsuit?
Loan amounts typically range from $1,500 to over $2,500,000 for various claims, including civil rights and personal injury cases. For corporate plaintiffs, we offer funding up to $20,000,000. However, our maximum funding is generally limited to 10% of the estimated case value
How long does the lawsuit loan process take?
In most cases, Baker Street Funding approves loans within 24 hours. The exact timeframe can vary depending on factors like the timeliness of document submission. For instance, if your personal injury attorney sends your case documents by 9 am ET, you can often get a same-day funding decision. Once approved, funds are typically available within hours.
Is pre-settlement funding even legal in Texas? I heard something about "champerty."
Yes, pre-settlement funding is legal in Texas. While Texas used to have laws against champerty (third parties profiting from lawsuits), those laws were relaxed, and court cases (like Anglo Dutch Petroleum International Inc. v. Haskell) have confirmed the legality of pre-settlement funding.
Can my Texas lawyer advance me money?
Texas regulations restrict attorneys from financially investing in their clients’ lawsuits. However, under specific conditions, they may provide advances for essential case-related expenses or living expenses only, without charging interest.
Can I get funding in Texas if I have a lawsuit settlement loan from another funding company?
Yes, you can potentially borrow more money and switch lenders by applying for a pre-settlement loan with Baker Street Funding. After approval, we’ll purchase your previous advance and combine it into a single loan with a reduced interest rate.
Can I get a lawsuit loan for an oilfield accident?
Yes, pre-settlement legal funding is available for various personal injury cases in Texas, including those related to oil field accidents.
Are there any upfront fees or hidden costs associated with Texas lawsuit loans?
No, there are absolutely no upfront fees or hidden costs associated with our Texas lawsuit loans.
Will Texas legal funding in Texas affect my case?
No, our pre-settlement loans do not influence your legal strategy or settlement negotiations. Our role is strictly as a financial supporter; we respect the independence of your legal process.
How do lawsuit loan interest rates work in Texas?
Baker Street Funding is committed to providing low and capped pre-settlement funding interest rates. However, your exact cost will depend on factors like the loan amount, case duration, and potential settlement value.
Interest | Non-compounding starting at 2.95% p/month |
Loan protection | 2-3 year cap |
Funding time | 24 hours |
Average loan amounts in Texas | $11,800 |
Funding amounts | $1,500 up to $2.5mm |
Type of loan | Non-recourse |
Workers’ comp eligibility | No |
Personal injury claim eligibility | Yes |
Civil rights case eligibility | Yes |
Pre-Settlement Funding Across Texas: Where We Serve & Personal Injury Trends.
Texas Counties Where We Provide Pre-Settlement Cash Advances.
At Baker Street Funding, we provide pre-settlement loans across a wide range of Texas counties, offering financial support to plaintiffs facing personal injury claims. Some of the counties we serve include:
Starr, Sterling, Travis, Trinity, Tyler, Uvalde, Val Verde, Victoria, Zavala, Jackson, Harris, Dallas, Tarrant, Collin, El Paso, Hidalgo, Denton, Austin, and more.
Cities We Serve
We are proud to support residents across major Texas cities. Whether you’re dealing with medical bills, lost wages, or other expenses, we provide pre-settlement loans in cities including:
Abilene, Allen, Amarillo, Arlington, Austin, Brownsville, Bryan, Cedar Hill, College Station, Corpus Christi, Dallas, El Paso, Fort Worth, Galveston, Houston, San Antonio, and more.
Personal Injury Trends and Statistics in Texas.
Personal injury claims are common in Texas. Understanding injury trends can help you make informed decisions about lawsuit funding. According to the Texas Department of State Health Services:
- From 2018 to 2020, non-fatal injury rates remained steady.
- The most common causes of injuries were unintentional accidents, with falls being the leading cause, especially among adults aged 65 and older.
- Car accidents were the most frequent source of injury among young adults (ages 15-24).
- In 2018, Texas experienced 3,185 fatal injuries, highlighting the state’s significant public health concerns.
Car Accident Statistics in Texas
Auto accidents continue to be a major concern for Texas residents. Here’s a closer look at some important statistics:
- Fatalities: In 2022, the fatality rate on Texas roadways was 1.55 deaths per hundred million vehicle miles traveled, with a slight decrease in total deaths compared to 2021.
- Serious Injuries: There were 15,299 serious injury crashes, resulting in 18,880 people sustaining severe injuries in 2022.
- DUI and Distracted Driving: In 2022, DUI accidents claimed 1,163 lives, while distracted driving led to 484 fatalities.
If you or a loved one has been injured in an accident in Texas, pre-settlement legal funding may be available to help you through this difficult time. Contact Baker Street Funding today at (888) 711-3599 or apply now (button) to learn more about how we can assist you.
Apply for a lawsuit loan today.
Personal injury lawsuits in Texas can bring all kinds of financial challenges, especially in times of personal hardship. At Baker Street Funding, we understand what you’re going through, which is why we provide non-recourse lawsuit loans that deliver quick relief when it matters most. Start the legal funding process now and experience financial peace as soon as the same day you are approved.