Collateralized Loans

Can I Use My Personal Injury Case As Collateral To Take A Loan For Living Expenses?

Loans against a personal injury matter can be obtained in Nevada. Years ago, attorneys were forbidden to even assist on helping a client get a loan. The rules since relaxed, and attorneys can now facilitate loans with qualified lenders. In 2017, the legislature eliminated numerous companies from making loan on personal injury matters by requiring lenders to be registered with the State for making “legal loans” and obtaining the requisite financial certifications to make loans. There is no Usury law in Nevada which means lenders can charge whatever interest they want to and this was true until the new law.

Personal injury loans are capped at 39% annual interest, and additional administration fees are often tacked on to really make the loans painful. NRS 675.292states that those companies who are not licensed may be fined up to $10,000 and charged with a misdemeanor. Attorneys typically discourage clients from taking loans against their case as litigation is often a long and uncertain process and can cost clients much of their settlement in interest. There are times where it is absolutely necessary to get a loan, and those time usually are when a surgery may be required and the client needs expense money while out of work.


626 S 10th St
Las Vegas, NV 89101
(702) 382-9797

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Benson and Bingham