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What Are Litigation Loans?

What are litigation loans?

Legal Definitions - Question 1
Litigation loan companies lend money to individuals involved in civil litigation, including long term disability (LTD) and personal injury lawsuits, who need help to pay for their daily living expenses.

For disabled individuals who are considering commencing legal action against their insurance company for denying or terminating their LTD benefits, retaining a law firm that works on a contingency fee basis, as Share Lawyers does, can help reduce the financial strain during this difficult time.

However, legal fees are not the only financial concern for LTD claimants. With a denied claim and no income coming in, their primary concern is often how to pay for their home, car, groceries and medication every month. Since these individuals will likely be ineligible for bank loans, a litigation loan may help to keep them afloat financially until their lawyer successfully negotiates a settlement with the insurance company on their behalf.

Before applying for a litigation loan, it is always wise to explore other funding sources first (such as borrowing from family or friends, or monetizing assets) as these loans usually come with high interest rates. One should also ensure that all government revenue sources are explored, such as EI sickness benefits, Canada Pension Plan Disability and the Ontario Disability Support Program.

Simply applying for a litigation loan does not ensure approval, as the requirements for these applications vary between lending companies. It is best to speak with your lawyer about whether a litigation loan could be helpful in your individual circumstances.

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DISABILITY SECRETS: Learn What Your Insurance Company Is Hiding From You!


This searchable database contains information about disability, critical illness and life insurance claims, and what you can do if you are denied or cut off of your benefits. It is a collection of the most common questions we receive from our clients. General answers have been provided by our lawyers.