Can I Get a Cash Advance on My Lawsuit in West Virginia?

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

Who West Virginia’s law covers

Article 6N of the Consumer Credit and Protection Act was passed in 2019 (SB 360) and amended in 2024 (SB 850), according to the bill history on 46A-6N-1. A consumer is a person who resides, is present or is domiciled in West Virginia and claims an entitlement to a judgment, award, settlement or verdict on a legal claim. Litigation financing is a transaction in which you receive money in exchange for assigning a right to payment “contingent in any respect on the outcome of the legal claim.”

Several arrangements fall outside the article: a lawyer’s contingency fee services and advanced costs under the West Virginia Rules of Professional Conduct, a consumer loan as defined in 46A-1-102, a workers’ compensation claim, lending between a lawyer or firm and a lender that gives the lender no particular interest in a case, and nonprofit financing that returns no more than the money provided plus interest at the Wall Street Journal prime rate plus 3% a year.

Registration and bond

A litigation financier registers with the Secretary of State and must file a surety bond or irrevocable letter of credit of at least $50,000, approved by the Office of the West Virginia Attorney General (46A-6N-2).

The 18% annual fee cap

Section 46A-6N-9 sets the price rules:

• the annual fee may not be “more than 18 percent of the original amount of money provided to the consumer”
• that fee may be charged only once a year for any single legal claim, no matter how many transactions you sign on that claim
• fees may compound semiannually but not more often
• the rate must include every charge you pay directly or indirectly and be computed only on money you actually received and kept
• no fees may be assessed for any period beyond 42 months from the contract date
• a new contract may not fold in your obligations from an earlier one

The section also bars a company from knowingly funding you after you sold part of the same claim’s proceeds to someone else, unless the earlier funder is paid or agrees in writing to less. If you are thinking about more than one advance, see can you get a second lawsuit advance.

Example only: on a hypothetical $10,000 advance, an 18% annual fee on the original amount is $1,800 a year. Without compounding, 42 months of fees would come to $6,300, for $16,300 in total; semiannual compounding, which the statute allows, could make it somewhat higher. Your contract terms decide what you owe, and they may be below the cap. Compare with how much pre-settlement funding costs.

What the contract must say

The contract must be completely filled in when offered to you (46A-6N-3). Section 46A-6N-5 makes the disclosures material terms and requires them in at least 14-point bold type, on the first two pages where possible. They include:

• that some or all of the funded amount may be taxable
• the total funded amount and an itemization of charges
• the total amount due in six-month intervals for 42 months
• that no other charges are owed, and the cumulative amount due if you have more than one contract
• that you owe nothing if there is no recovery, and that the funder must accept a reduced sum as full payment if the net proceeds fall short

The contract also says you may cancel within 5 business days, explains how to return the money by mail or in person, states that decisions about the lawsuit stay “solely with you and your attorney,” and carries a boxed notice that “THE FUNDED AMOUNT AND AGREED-TO CHARGES SHALL BE PAID ONLY FROM THE PROCEEDS OF YOUR LEGAL CLAIM.” Above your signature it warns, “DO NOT SIGN THIS CONTRACT BEFORE YOU READ IT COMPLETELY.”

Cancelling and your lawyer’s role

Under 46A-6N-3 you may cancel without penalty within 5 business days after receiving the money or signing the contract, whichever is later, by giving notice and returning what you received. The contract must include your written statement of whether a lawyer represents you. If one does, the lawyer must acknowledge having had the opportunity to review the contract, representing you in the dispute, and neither receiving nor paying a referral fee, now or later.

The defense will see the contract

West Virginia requires disclosure of funding agreements in the lawsuit itself. Unless the court orders or the parties agree otherwise, a party or its lawyer must give the other parties, without waiting for a discovery request, any agreement under which a litigation financier has a right to compensation contingent on the outcome (46A-6N-6). Talk with your lawyer about what you share with a funder; our page on funding and attorney-client privilege explains the risks.

What funders may not do, and who gets paid first

Section 46A-6N-4 bars referral fees in either direction with attorneys and medical providers, false or misleading ads, steering you to a particular lawyer or provider, failing to promptly supply copies of your contracts, seeking a waiver of your remedies or mandatory arbitration in your case, giving legal advice, assigning or securitizing your contract (except to a subsidiary or affiliate, or as a security interest, where the company keeps collection duties), reporting you to a credit agency when the net proceeds fall short, and receiving any right to direct or decide anything about your claim. Your lawyer may not have a financial interest in a funding company or take referral fees from it.

Under 46A-6N-8, the funder’s lien comes ahead of liens that attach later, but not ahead of liens held by attorneys, insurance carriers or medical providers, subrogation and reimbursement claims, or child support, Medicare, tax and other government liens. See funding and medical liens and child support and lawsuit advances.

Enforcement and complaints

“Any violation of this article shall make the litigation financing contract unenforceable” by the financier, the consumer, the law firm or anyone who takes over the contract (46A-6N-7). The article does not limit the Attorney General’s powers under the Consumer Credit and Protection Act.

To complain, contact the Attorney General’s Consumer Protection Division: use the online General Consumer Complaint form, email the completed form to complaint@wvago.gov, or mail it to Office of the Attorney General, Consumer Protection Division, PO Box 1789, Charleston, WV 25326-1789. The Consumer Protection Hotline, 1-800-368-8808, can help with the forms.

Your deadline to sue

An advance does not change the time limit on your claim. West Virginia allows 2 years for “damages for personal injuries” (W. Va. Code 55-2-12(b)), and other claims can have other periods.

What to ask before you sign

• Is your company registered with the West Virginia Secretary of State, with a bond on file?
• What is the annual fee as a percentage of the original amount, and how often does it compound?
• What will I owe at each six-month mark up to 42 months?
• Has my lawyer signed the acknowledgment?

The state law table compares states, and the lawsuit cash advance guide covers the basics.

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.