Can I get a cash advance on my lawsuit in Alaska, and what does Alaska law say?

By Michael Shemtoub, trial attorney, Beverly Law. Updated November 2026.

What Alaska law does not have

There is no chapter of the Alaska Statutes on consumer legal funding. Nothing in Alaska law, as far as we found, gives you a right to cancel these contracts, requires the funder to register, requires your lawyer to sign off or caps what you can be charged on a nonrecourse advance. We did not verify any Alaska bill on the topic and describe none. Our state law table shows what other states have written into law.

Alaska’s interest limits

Alaska sets the rate on money after it is due at “10.5 percent a year and no more.” For a contract or loan commitment, interest may not be charged “that is more than the greater of 10 percent or five percentage points above” a Federal Reserve rate charged to member banks. That limit drops away for large deals: “A contract or loan commitment in which the principal amount exceeds $25,000 is exempt from the limitation of this subsection” (AS 45.45.010).

The penalties are strong. If a court finds a usurious rate in a contract action, it “works a forfeiture of the entire interest on the debt,” and judgment is entered for the amount due “without interest” (AS 45.45.040). A person who already paid excess interest may, “by action brought within two years after the payment,” recover “double the amount of the interest received or collected” (AS 45.45.030).

The Small Loans Act

Alaska also licenses small lenders. A person “may not engage in the business of making loans of money, credit, goods, or things in action in the amount or of the value of $25,000 or less” and charge more than an unlicensed lender could, “without first obtaining a license from the department” (AS 06.20.010). The Division of Banking and Securities administers Alaska’s financial services laws (Division of Banking and Securities).

If an advance of $25,000 or less counted as a loan, both the rate limit in AS 45.45.010 and the license rule could come into play. The open question is whether it is a loan when you owe nothing if your case fails. We found no Alaska court answer. Courts in other states have reached different results, which our page on whether a lawsuit cash advance is a loan walks through.

Champerty in Alaska

Some states have used the old doctrines of champerty and maintenance against funding contracts. We found no Alaska statute on champerty and no Alaska appellate decision applying it to a lawsuit advance, so we cannot tell you how an Alaska court would treat that argument.

Alaska lawyers may give modest gifts

Alaska changed its ethics rule in 2022 in a way that matters here. Rule 1.8(e) still bars a lawyer from giving “financial assistance to a client in connection with pending or contemplated litigation,” with exceptions for court costs and litigation expenses. But since Supreme Court Order No. 1991, effective November 29, 2022, a lawyer “may provide modest gifts to a client for food, rent, transportation, medicine, and other basic living expenses” (Alaska R. Prof. Conduct 1.8; SCO 1991).

Unlike the ABA version, the Alaska text of paragraph (e)(3) is not limited to indigent clients served pro bono. The conditions are strict. The lawyer may not promise or imply gifts before being hired or to keep you as a client, may not seek repayment from you or your family, and may not advertise them. “Gifts that would compromise the lawyer’s independent professional judgment are prohibited.” The new comment says gifts must not be so large that they create a conflict over settling the case, and that the lawyer should talk with you first about effects on taxes or public benefits.

These are gifts, not loans, and a lawyer never has to give one. If you receive public benefits, read our page on lawsuit advances, SSI and Medicaid before accepting money from anyone. More on the national picture is on can my lawyer give me money before settlement.

Your two-year deadline

Under AS 09.10.070(a), an action “for personal injury or death” must be “commenced within two years of the accrual of the cause of action,” unless another law provides otherwise. Signing a funding contract does not extend that time.

Where to complain in Alaska

The Department of Law’s Consumer Protection Unit takes complaints through its online complaint form, by email at consumerprotection@alaska.gov, or by phone at 907-269-5200 in Anchorage and 1-888-576-2529 toll-free outside Anchorage. The unit says it “cannot provide legal advice, representation, or interpretation” (Consumer Protection Unit). For a lender licensing question, the Division of Banking and Securities has a complaint form, email dbsc@alaska.gov, and phone (907) 269-8140 or toll-free (888) 925-2521.

What to ask before you sign

• Is the amount $25,000 or less, and does the company hold an Alaska small loan license?
• What would I owe at 6, 12, 24 and 36 months? Compare it with our page on what pre-settlement funding costs.
• If my case is lost or dismissed, is there any situation where I still owe money?
• Which state’s law and which court does the contract choose?
• Would a modest gift from my lawyer under Rule 1.8(e)(3) cover the need instead?

Common questions

Related pages

Cash advance on a lawsuit · Laws by state · Injury law FAQs

Important: This page is general information, not legal or medical advice, and reading it does not create an attorney-client relationship. Every case is different; talk to a lawyer about yours. Texas cases are handled by the firm’s Texas-licensed attorneys, Joyce Ondich and John Efstathiou. Last reviewed: November 7, 2026.