Is lawsuit funding legal in New York?
Yes, but not from us. New York: statute plus a company decision — A804C / S1104A — Consumer Litigation Funding Act, effective June 17, 2026. Get Lit Money does not fund in New York.
What you can do in New York instead
New York's Consumer Litigation Funding Act took effect in June 2026 and we are not funding here while we work through it. The Act requires funders to register. Registered funders do operate in New York — ask your attorney which ones the firm has worked with, and compare the published rate, the cap and whether interest compounds before you sign anything.
The statute
Statute plus a company decision. A804C / S1104A — Consumer Litigation Funding Act, effective June 17, 2026. New York regulates consumer litigation funding under a statute that took effect in 2026. We have decided not to fund here while we work through what it requires of us. 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If you are reading an article about funding law written before 2026, assume it is out of date.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.
New York claim deadlines
The personal injury filing deadline in New York is 3 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 30 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
New York applies pure comparative negligence. You can still recover even if you were mostly at fault. Your award is reduced by your share of the blame. How comparative negligence works.
Is an advance a loan in New York?
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 New York — 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.