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

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

No funding statute, and a bill that is not about this

We found no Wyoming bill that would license or regulate consumer lawsuit advances. One 2025 bill has a similar-sounding title: HB 233, “Natural resource litigation funding.” It dealt with money the state sets aside for its own lawsuits over natural resource development. It says nothing about private companies advancing money to injured people.

The consumer credit code: what counts as a consumer loan

The definitions do most of the work in Wyoming.

• “Loan.” The code says a loan includes “The creation of debt by the lender’s payment of or agreement to pay money to the debtor or to a third party for the account of the debtor” (W.S. 40-14-306(a)(i)).
• “Consumer loan.” It is a loan “made by a person regularly engaged in the business of making loans” in which the debtor is not an organization, the debt is “incurred primarily for a personal, family or household purpose,” “Either the debt is payable in installments or a loan finance charge is made,” and the principal does not exceed $75,000 (W.S. 40-14-304(a)).

Two things stand out. The installment test is optional: a single payoff can qualify if a finance charge is made. But every part of the definition speaks of “debt.” A non-recourse advance is owed only if the case brings in money, and a company could argue that is not a debt at all. We found no Wyoming appellate decision on whether a lawsuit advance is a consumer loan, and no published position from the Division of Banking. Other states’ courts have divided over the same question; see is a lawsuit cash advance a loan.

License, rate limits and the penalty

• License. “Unless a person is a supervised financial organization or has first obtained a license from the administrator, no person shall engage in the business of making consumer loans” (W.S. 40-14-302(b)).
• Rate limits. Figured by the actuarial method, the finance charge “shall not exceed the equivalent of thirty-six percent (36%) per year” on the part of the unpaid principal up to $1,000 and “twenty-one percent (21%) per year” on the part above $1,000 (W.S. 40-14-310(g)).
• No license. If a creditor violates the licensing rule, “the loan is void and the debtor is not obligated to pay either the principal or loan finance charge,” and money already paid can be recovered within the time limits the statute sets (W.S. 40-14-521(b)).
• The default rate. Where no other rate is agreed or set by law, interest runs at “seven percent (7%) per annum” (W.S. 40-14-106(e)).

Example only: on a $5,000 balance held for one year, the tiered limits would allow about $360 on the first $1,000 and about $840 on the other $4,000, or roughly $1,200 in all. That ceiling would matter only if a court found the advance to be a consumer loan, and your contract’s terms decide what you are charged. Our page on how much pre-settlement funding costs shows how payoffs grow.

Champerty and the lawyer’s rule

We found no Wyoming appellate decision applying champerty, the common-law bar on a stranger financing a lawsuit for a cut of the recovery, to a consumer advance. Nor did we find a Wyoming statute on the subject.

The Wyoming Supreme Court adopts the Rules of Professional Conduct for Attorneys at Law. We were unable to read the court’s posted copy of Rule 1.8(e) while writing this page, so we do not describe Wyoming’s version of the financial assistance rule. Your lawyer can tell you what it allows; our page can my lawyer give me money before settlement explains the ABA model.

Your filing deadline in Wyoming

Under W.S. 1-3-105(a)(iv)(C), an action for “An injury to the rights of the plaintiff, not arising on contract and not herein enumerated” must be brought within four years after the cause of action accrues. Other Wyoming statutes set different periods for some claims, so confirm yours early. An advance does not stop the clock.

What to ask before you sign

• Is the company on the Division of Banking’s consumer lending licensee list? If not, ask why it believes it needs no license.
• Is the amount you receive more than $75,000? The consumer loan definition stops there.
• What is the payoff at 12, 24 and 36 months, and what yearly rate does it equal?
• Will you owe anything if the case loses, and 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.