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

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

What the General Assembly has done so far

The only Delaware legislative action on litigation funding we found is a resolution, not a law. Senate Concurrent Resolution 127 passed the Senate on June 28, 2022, and the record lists no House action. It “encourages the Delaware Judiciary to study and, if appropriate, recommend revisions to courts’ rules of procedure or statutes, if needed, to implement a disclosure requirement for third-party litigation funding” (resolution text). It does not mention consumer advances and sets no rates, licenses or contract terms.

Delaware’s usury law: 6 Del. C. §§ 2301 and 2304

• The cap. A lender may charge interest “at any rate agreed upon in writing not in excess of 5% over the Federal Reserve discount rate including any surcharge thereon” (6 Del. C. § 2301(a)).
• The large-loan exception. There is “no limitation on the rate of interest” when the amount loaned “exceeds $100,000” and is not secured by a mortgage on the borrower’s principal residence (§ 2301(c)).
• What happens if the cap is broken. The borrower “shall not be required to pay the creditor the excess over the lawful rate” and may deduct it from the debt. A borrower who has already paid can sue for “3 times the amount of interest collected” above the legal limit or $500, whichever is greater, if the suit is filed “within 1 year after the time of such payment” (§ 2304(b)).

The Licensed Lenders chapter: Title 5, chapter 22

Delaware requires a license for anyone “desiring to transact the business of lending money in this State,” but a person making “not more than 5 loans within any 12-month period” is not treated as being in that business. The same subsection adds that “loans made by any such unlicensed lender shall fall under Chapter 23 of Title 6,” which is the usury chapter above (5 Del. C. § 2202(a)).

For licensees, the rate is whatever the contract says. Under 5 Del. C. § 2229, a licensee “may charge and collect interest in respect of a loan” at the rate or rates “the agreement governing the loan provides.” No number appears in the section.

So licensing works backward here. In Connecticut and Wyoming, a lending license comes with a rate ceiling; in Delaware the license removes it, and an unlicensed lender is the one held to 5 percent over the discount rate. If a court treated a non-recourse advance from an unlicensed company as a loan, §§ 2301 and 2304 could apply. We found no Delaware appellate decision on that question. Courts in other states have split; see is a lawsuit cash advance a loan.

Champerty is still alive in Delaware

In Charge Injection Technologies, Inc. v. E.I. DuPont de Nemours & Co. (Del. Super. Ct. Mar. 9, 2016), President Judge Jurden described champerty as “an agreement between the owner of a claim and a volunteer that the latter may take the claim and collect it,” splitting the proceeds, with “the champertor to carry on the suit at his own expense.” Rejecting the argument that the doctrines were obsolete, the court said that, “Absent a ruling from the Delaware Supreme Court holding that [the] doctrines are dead,” it “will continue to recognize them.”

The court upheld the funding agreement in that business case. It found “there was no assignment,” that the plaintiff remained “the bona fide owner of the claims,” and that it kept “the unfettered right to settle the Litigation Claim at any time for any amount.” The plaintiff was a company, not a consumer, but those facts are worth checking in any Delaware contract. More on settlement control: can a funding company control my case.

What a Delaware lawyer may pay for

The Delaware Supreme Court amended Rule 1.8 of the Delaware Lawyers’ Rules of Professional Conduct by order dated December 18, 2023, effective immediately. A lawyer still may not give a client financial assistance in connection with litigation, except to advance court costs and expenses (repayment may depend on the outcome) or pay them for an indigent client. The new paragraph lets a lawyer representing an indigent client for free give “modest gifts to the client for food, rent, transportation, medicine, and other basic living expenses,” with no reimbursement and no advertising of it. A client paying through a contingency fee is outside that exception. See can my lawyer give me money before settlement.

Your filing deadline in Delaware

Under 10 Del. C. § 8119, “No action for the recovery of damages upon a claim for alleged personal injuries” may be brought more than two years from the date the injuries were sustained. Some claims follow other rules, and a funding contract does not extend any of them.

What to ask before you sign

• Is the company licensed by the Office of the State Bank Commissioner? The office publishes a list of licensed non-depository institutions.
• What will you owe at 12, 24 and 36 months, and what annual rate does that equal?
• Can the company block or approve a settlement? The Charge Injection court relied on the plaintiff’s freedom to settle.
• Has your lawyer read the contract?

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.