State rules
Funders activeCase Equity in Texas.
ClaimAngel funders are active in Texas. One set rate: 27.8% simple, 2x cap at 46 months. If you don't win, you owe nothing back.
The industry calls this pre-settlement funding, legal funding, or a lawsuit loan. We call it Case Equity.
The short version
You can get funding in Texas. There is no state funding law, so your contract is what protects you. Read it, and ask for the rate in writing. Ours is public.
The facts
What Texas law says.
As of July 14, 2026
Texas has no funding-specific statute. A 2025 disclosure bill, SB 3025, died in the Senate State Affairs committee. Texas never adopted champerty, and its courts treat non-recourse funding as an investment rather than a debt, so usury limits do not apply. Funding operates under general contract law.
Where the law stands
No statute. SB 3025 (2025), which would have directed the Texas Supreme Court to adopt funding-disclosure rules, died in committee in April 2025. The Legislature does not meet in regular session in 2026.
The courts
Anglo-Dutch Petroleum v. Haskell (Tex. App. 2006) held litigation funding agreements enforceable as investments, not usurious debt, and not void as against public policy. Texas never incorporated champerty into its common law.
For plaintiffs
- Funding is available and enforceable in Texas, with no state-imposed caps or disclosure requirements. The terms you sign are the terms you get, so read them. Ours are public: 27.8% simple, capped at 2x.
For law firms
- No disclosure obligation exists today. The 2025 session showed appetite for one; expect the issue back in 2027.
Sources
- SB 3025 (89th Legislature, 2025) history, Texas Legislature Online (accessed July 14, 2026)
- Anglo-Dutch Petroleum Int'l v. Haskell (Tex. App. 2006), Justia (accessed July 14, 2026)
For educational purposes only, not legal advice. Laws change and courts reinterpret them. Check the dated sources on this page, and talk to a lawyer licensed in your state about your own case.
The questions
Texas funding, asked plainly.
Is pre-settlement funding legal in Texas?
Yes. You can get funding in Texas. There is no state funding law, so your contract is what protects you. Read it, and ask for the rate in writing. Ours is public. On ClaimAngel it is offered as Case Equity: one set rate, a hard cap, and nothing owed if you lose.
Can I get a lawsuit loan in Texas?
What the industry calls a lawsuit loan is not a loan: a loan bills you monthly and follows you if you lose, and this does neither. The accurate name for the modern product is Case Equity, money drawn from the value your case already holds. You can draw on your Texas case through ClaimAngel today, with no credit check and nothing owed if you lose.
How much does legal funding cost in Texas?
Texas does not set a state-specific price cap. On ClaimAngel the rate is public and the same everywhere we serve: 27.8% simple annual interest, never compounding, with a hard cap at 2x the draw plus financed fees. The calculator shows the exact payoff for your numbers, to the penny.
Is pre-settlement funding a loan?
No. A loan follows you if you lose and bills you along the way. Case Equity is non-recourse: money from the value of your case, repaid only out of a winning settlement. Lose the case, keep the money, owe nothing back.
What happens if I lose my case?
You owe nothing back. Non-recourse is the product, not fine print: the draw is repaid only from a settlement or judgment in your favor.
Ready when you are. Same set rate for every Texas case, and nothing owed if you don't win.