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

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

Usury and consumer lending in Virginia

Virginia’s general rule is in Va. Code 6.2-303(A): “Except as otherwise permitted by law, no contract shall be made for the payment of interest on a loan at a rate that exceeds 12 percent per year.” Subsection B lists the laws that allow more, including the consumer finance chapter.

That chapter has its own license rule. Va. Code 6.2-1501 bars anyone from making loans to individuals for personal, family or household purposes and charging interest and charges that in total exceed what section 6.2-303 permits without first getting a license from the State Corporation Commission. Subsection F states the consequence plainly: “Any loan made in violation of this section is void,” and no one may “collect, receive, or retain any principal, interest, fees, or other charges in connection with the loan.”

If a borrower has already paid interest above the legal limit, Va. Code 6.2-305 allows a suit to recover the excess interest, twice the interest paid in the two years before the suit is filed, and court costs and reasonable attorney fees. A lender that proves a bona fide computing error or similar mistake avoids the penalties and returns only the excess. The suit must be filed within two years of the last scheduled payment or the date the loan was paid off, whichever comes first.

Is a lawsuit advance a “loan” in Virginia?

Every rule above applies only to a loan. Funding contracts are usually written so that nothing is owed if the case is lost, which is the main argument companies make that they are not loans. We found no Virginia court decision and no published position from the State Corporation Commission or the Attorney General deciding how Virginia law treats these contracts. Courts in other states have reached different answers; is a lawsuit cash advance a loan walks through those decisions.

Champerty and barratry in Virginia

Virginia has no champerty statute, but its courts have treated the common law rule as alive. In Nickels v. Kane’s Adm’r, 82 Va. 309 (1886), the court defined champerty as “a bargain with the plaintiff or defendant in a suit for a portion of the land or other matter sued for,” said it “must be considered upon the principles of the common law, there being no statute in our code,” and stated that “champerty avoids the contracts into which it enters.” It then upheld the attorney’s percentage fee contract in that case as not champertous.

In Roller v. Murray, 112 Va. 780 (1911), the court said “the common law as to champerty with respect to the validity of contracts is still in force in this State,” and that an agreement found champertous is “held to be void.” Both cases involved lawyers’ fee arrangements. We found no modern Virginia appellate decision applying champerty to a consumer lawsuit advance, so how a Virginia court would treat one today is unsettled.

Virginia also has a criminal barratry article. Va. Code 18.2-451 defines barratry as “the offense of stirring up litigation” and treats as “instigating” bringing it about that all or part of the expenses of litigation are paid by the barrator, unless the instigation is justified. We found no case applying it to a consumer funding company.

Can a Virginia lawyer give you money instead?

Not for living expenses. Virginia Rule of Professional Conduct 1.8(e) says a lawyer “shall not provide financial assistance to a client in connection with pending or contemplated litigation,” except that a lawyer may advance “court costs and expenses of litigation, the repayment of which may be contingent on the outcome of the matter,” and a lawyer for an indigent client may pay those costs. Comment [10] says lawyers may not subsidize their clients’ lawsuits, which includes lending clients money “for living expenses.” More on this in can my lawyer give me money before settlement.

Your filing deadline in Virginia

Under Va. Code 8.01-243(A), “every action for personal injuries, whatever the theory of recovery,” must be brought within two years after the cause of action accrues, unless another statute says otherwise. Two years passes quickly while you wait for treatment to finish, and an advance does nothing to stop that clock.

What to ask before you sign

• Does the company hold a Virginia consumer finance license from the State Corporation Commission, and if not, why does it believe it needs none?
• Which state’s law does the contract pick, and does it require arbitration outside Virginia?
• What will you owe in dollars at each six-month mark?
• What happens if a court finds the contract void? See what if you lose your case for how repayment works when a case recovers nothing.
• Is there another way to cover the gap? See alternatives to pre-settlement funding.

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.