Advances

Can I Get a Loan From a Lawyer? 

Texas Law allows lawyers to advance money to clients for lost wages, medical, housing, transportation, and funeral expenses. An advance is like a loan, but you don’t have to pay us back unless we win your case. We do not charge interest on client advances. 

We make advances to help with: 

  • Funeral Expenses 
  • Lost Wages 
  • Medical Expenses 

Why Does Your Law Firm Make These Advances? 

We make advances to clients to help relieve some of the financial hardship that follows a life-changing accident or an unexpected death of a loved one. We don’t want our clients to be forced into making a quick settlement for less than the full value of their case just to make a house payment or cover short term expenses. We often can help our clients stay strong while their case is pending by making such advances. 

What Should I Watch Out For? 

If a funeral home is trying to refer you to a lawyer, that funeral director may be getting paid a referral fee or kickback under the table. It is illegal for lawyers to pay funeral homes for referrals, and it is illegal for funeral homes to get a commission for referring a client.  

If a funeral home is trying to refer you to a lawyer, please report that here. 

Choose Your Lawyer Carefully – Don’t Hire a Law Firm Just Because They Make Loans 

This webpage is an advertisement and does not constitute an “offer” to make a loan or advance. 

While we often make such loans, the decision is one that is made on a case-by-case basis. If you are looking for a lawyer in a personal injury or wrongful death case, you should not choose a law firm based solely on whether that firm might make you a loan. Many experienced and qualified law firms will make loans to their clients as set forth above. The client should carefully research each law firm and consider the law firm’s reputation, experience, results, professionalism, communications, and any other aspect of the relationship. 

Is it Legal for Lawyers to Make Loans to their Clients?  

Many states, including New Mexico, prohibit lawyers from making such advances, but the rules governing Texas Lawyers specifically allow such advances. 

Texas Disciplinary Rules of Professional Conduct Rule 1.08(d) specifically provides that “a lawyer may advance or guarantee reasonably necessary medical and living expenses, the repayment of which may be contingent on the outcome of the matter.” 

While the Texas Penal Code Section 38.12(a)(3) makes it an offense if a person “pays, gives, or advances or offers to pay, give, or advance to a prospective client money or anything of value to obtain employment as a professional from the prospective client”. That same Penal Code Section 38.12 (c) also provides “It is an exception to prosecution under Subsection (a) or (b) that the person’s conduct is authorized by the Texas Disciplinary Rules of Professional Conduct or any rule of court.” Since the advances at issue are authorized by the Texas Disciplinary Rules of Professional Conduct Rules, it is legal. 

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