Is lawsuit funding legal in Alabama?
Not in a form a court will enforce. Alabama: restrictive — funding agreements held void — Wilson v. Harris, 688 So. 2d 265 (Ala. Civ. App. 1996) — void as against public policy. Get Lit Money does not fund in Alabama.
What you can do in Alabama instead
An Alabama appellate court has held that agreements to fund a lawsuit in exchange for a share of the recovery are void as against public policy, and the legislature has never changed that. No funder can give you an enforceable advance here, and one that offers to is asking you to sign something a court may not honor. Talk to your attorney about a medical lien or provider deferral, and check whether MedPay or health insurance can carry treatment until the case resolves.
The law
Restrictive — funding agreements held void. Wilson v. Harris, 688 So. 2d 265 (Ala. Civ. App. 1996) — void as against public policy. This is not a licensing question. A court has held these agreements void, and no license, registration or contract drafting cures that — so we do not fund in Alabama. A narrower map buys an unqualified promise everywhere else, and we think that is the right trade.
Why this changed recently
The map moved materially in 2026. North Carolina became the first state to ban third-party litigation financing outright, under HB 315, effective June 22, 2026. New York’s Consumer Litigation Funding Act took effect on June 17, 2026. Georgia began requiring NMLS registration on January 1, 2026, and made larger funding agreements discoverable in civil cases.
If you are reading an article about funding law written before 2026, assume it is out of date. This area is moving quickly and three material changes landed in the first half of the year alone.
Alabama claim deadlines
The personal injury filing deadline in Alabama is 2 years from the date of injury in most cases. Missing it bars the claim permanently, however strong it is.
Workers’ compensation runs on a separate clock. Notify your employer within 90 days and file the claim within 2 years.
Claims against government entities usually require a formal notice of claim far sooner — often 30 to 180 days — and missing that bars the claim even though the ordinary deadline has years left. More on notice of claim.
If you were partly at fault
Alabama applies contributory negligence. This is one of the strictest fault rules in the country. If you are found even 1% at fault, you may recover nothing — which is why the case value here can turn entirely on the liability argument. How comparative negligence works.
Is an advance a loan in Alabama?
A genuine pre-settlement advance is non-recourse: it is repaid only from a recovery, and if the case does not recover there is nothing to repay. That is the distinction most state statutes turn on, and it is why the map looks so uneven — where a court treats an advance as a loan, state lending and usury rules apply, which is the basis on which Colorado and Maryland regulate these products as consumer loans. More on usury and funding.
This page summarizes publicly reported legislation and published statutory summaries. It is not legal advice and it is not a compliance opinion. Your attorney is the right person to ask about your case.
We can't fund in Alabama — but the law page is here for a reason.
If your case moves to a state we serve, or you are reading this for a client elsewhere, the rest of the site applies. We would rather tell you plainly than take your details.