You are in urgent need of an attorney to handle a personal matter, but you don’t have the means to hire one. Faced with this situation, many people have taken out loans for legal fees. This is possible, even if your credit is less than ideal. Here’s where to find a loan to pay for a lawyer. We’ll also discuss the advantages and considerations of some of the various means of financing legal representation.

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What are Loans for Legal Fees?

According to World Population Review, attorney fees in the U.S. average around $300 an hour, with specialized or top-tier lawyers often charging $800 and more. Meanwhile, financial analysts at Bankrate say only 41% of American adults have the cash to cover an unexpected $1,000 expense, while nearly 25% have no savings at all.

Those figures suggest many people would find it hard to pay for legal fees up front. That’s where loans for legal fees can potentially help. These financing arrangements allow you to spread out lawyer fees and expenses instead of paying everything upfront.

How Loans for Legal Fees Work

The basic idea behind loans for legal fees is you borrow money to pay your attorney in full at the start, or as bills come due. You then repay the lender over time with interest. Available in a number of different forms, the most common means of financing attorney fees include:

  • Personal Loans
  • Legal Fee Financing Companies
  • Litigation Funding
  • Credit Cards
  • Law Firm Payment Plans

Personal Loans - These lump-sum loans are typically offered by banks, credit unions or online lenders. Personal loans are usually unsecured, which means loan decisions are based on your income and credit history, with no collateral required. Qualifying for personal loans usually requires a credit score of at least 580, according to the analysts at the credit reporting bureau Experian. Typically, you’re approved for a specific amount and receive it upfront. You repay it over a set period, often multiple years, with a fixed monthly payment. Your interest rate usually depends on your credit rating. The higher your credit score, the lower your interest rate is likely to be. Note that the application and underwriting process can take several days or longer.

Legal Fee Financing Companies - These organizations partner with law firms to offer loans to their clients. Borrowers can often apply online, using a link provided by their attorney. You don’t always need good credit, as options vary by provider and financing type. The finance company approves you for a loan equal to the law firm’s fees. The company pays the firm upfront and you repay the finance company in installments.

Litigation Funding - This method of financing legal fees typically applies to cases in which you are likely to receive a monetary award. The funder is paid back only if you win or settle. Because approval focuses on the strength and expected value of your case, your credit history doesn’t come into play. Funding is generally structured as a percentage of the settlement.

Credit Cards - You’re not getting a “lawyer loan” in a strict sense; you’re just charging the legal bill to your existing card. You will present your card at the time of payment or pay via an online link to an invoice. The card’s processor pays the firm quickly and you repay the card issuer according to your card’s terms.

Law Firm Payment Plans - While not exactly a loan, some firms will let you make installment payments on your fees. Payment plans typically involve a written agreement outlining terms such as payment amounts, payment schedules and consequences for missed payments.Typical payment structures include tiered plans tied to case milestones (e.g., initial retainer, filing, settlement) or equal monthly installments.

Can You Use a Title Loan to Pay for a Lawyer?

You can use a car equity loan for any non-business expense - including attorney fees. This type of secured, short-term loan lets you use the equity in your vehicle as collateral to secure the loan. To qualify, you must be at least 18 years old, live in the state in which you’re applying and have a vehicle registered in your name of sufficient value to support the loan amount you’re requesting.

To get started with a car collateral loan serviced by LoanMart for example, you’ll complete a short online application and provide a few essential documents. The documentation includes proof of your income, photos of your automobile, a government-issued photo ID and proof of residence. You’ll also need to provide a copy of the title to your vehicle. In some cases, you may also be required to submit a DMV form granting permission to place a lien on the title to the automobile.

Approval for a LoanMart-serviced car title loan can typically be had within an hour of completing the application process. The amount offered will depend on the vehicle’s value and your ability to make timely payments.1 While the maximum offer is usually around half of your car's value, you can borrow any amount within your approved range.

Your funds may be available in just one business day - which can be key when you’re dealing with a legal matter.3 Once you receive your loan funds, a lien will be placed on your vehicle’s title, which will be removed when you pay the loan off.

Here’s the easy and convenient application process for an auto title loan serviced by LoanMart:

  • Complete the short online form, or call 855-422-7412 to apply over the phone
  • Submit the required documents
  • Review and sign the loan agreement

Note that loan proceeds go directly to you - not the lawyer.

Benefits of Using Loans for Legal Fees

Loans for legal fees help you afford representation you might otherwise forego due to high costs. They can also help you secure counsel early, enabling faster progress and better outcomes, particularly in costly litigation or complex cases. Further, these loans can help prevent cases from stalling over payments, leading to smoother resolutions. Repayment can occur in predictable, manageable installments, easing financial pressures. Using loans for legal fees can also help you avoid the pitfalls of self-representation.

Cost Considerations of Legal Fee Loans

Interest rates and associated costs of loans to cover legal fees vary widely by type, lender and borrower qualifications. For example, personal loans typically carry fixed interest rates of 7% to 15% or higher, depending on your credit score and term length. Origination fees for personal loans can range from 1% to 8%, with some lenders adding prepayment penalties if borrowers pay off the loan early. Note that for loans serviced by LoanMart, which carry competitive interest rates to similar types of alternative financing, there are no prepayment penalties and no extra charges for same-day funding.

Legal fee financing companies typically charge interest rates of 1% to 6% per month, with some organizations using fixed-fee models that avoid recurring interest. Rates usually depend on case strength, jurisdictions and the amount of damages claimed.

Interest rates for litigation funding are typically high due to the risk that you may lose, often with no repayment obligation. Standard ranges include 27% to 60% annually for pre-payment lawsuit loans, or 1% to 5% monthly. Beyond interest charges, providers can add origination fees, case management costs and processing charges.

If you’re considering using a credit card to pay legal expenses, some states prohibit law firms from passing credit card fees on to clients. Inquire about the firm’s policy on this upfront to avoid surprises.

Questions to Ask Before Committing to a Loan

It is important to ask targeted questions to assess costs, risks and suitability to your circumstances before signing off on a legal fee financing option. While the questions you need to ask will vary according to the type of loan you’re seeking, here are some of the most common concerns.

Personal Loans

  • What are the interest rates, total fees and repayment terms?
  • Do you require a strong credit score or proof of income?
  • What documentation is needed?
  • Are there prepayment penalties?

Legal Fee Financing

  • Are there fees or origination charges beyond the stated interest rate?
  • Are you a direct lender, or a broker shopping my case to others?
  • What is your underwriting process, approval rate and typical funding timeline?
  • Do you comply with my state’s laws, including disclosures and fee caps?
  • Is my lawyer involved in the process, and will they receive full details?
  • What are your eligibility requirements?
  • Have you faced compliance issues or legal actions?

Litigation Funding

  • Is repayment required if the judgment goes against me?
  • What is your experience in my case type, jurisdiction and claim size?
  • What is your track record ?
  • What is your capital source?

Credit Cards

  • Does your firm accept credit cards for payment?
  • Am I responsible for credit card fees?
  • Will using credit impact my overall financial flexibility during the case?

Law Firm Payment Plans

  • What are the installment terms?
  • Are all costs covered?
  • Is attorney approval or involvement required?
  • What happens if the case settles early, or extends longer than expected?

Car Title Loans

  • Can I get a title loan if my car isn’t paid off?
  • Can I get a title loan with bad credit?
  • How much can I borrow?
  • Do I need to have a traditional job?

Alternatives to Loans for Legal Fees

There are additional funding options if you’d rather not take out a loan to pay legal fees. Perhaps friends or family members can come to your aid. Barring that, you may want to consider crowdfunding or other fundraising opportunities to cast a wider net of potential benefactors.

Sometimes, a lawyer or law firm will offer pro bono (no-charge) services to those who otherwise would not be able to pay for them. The American Bar Association recommends lawyers perform at least 50 hours of pro bono service annually. It never hurts to ask.

Another possibility is a legal aid clinic. They help people who can’t afford a private lawyer with free or low-cost legal services. Legal Aid clinics offer advice, document preparation, court representation and self-help resources.

The Bottom Line

You have a lot of options if you’re searching for a way to pay legal fees. It is important to weigh them carefully, basing your decision on what’s best for your financial situation. A car equity loan serviced by LoanMart, offers easy qualifying, speedy funding and exceptional customer service. You don’t have to let a lack of funds stop you from obtaining the legal support you need. Apply for your LoanMart-serviced title loan today.