Is lawsuit funding legal in North Carolina?
No. North Carolina: banned outright — HB 315 — Prohibit Litigation Investments Act, effective June 22, 2026. Get Lit Money does not fund in North Carolina.
What you can do in North Carolina instead
North Carolina is the first state in the country to prohibit third-party litigation financing outright, so no funder can advance against a claim here — and any company still offering to is one to walk away from. Talk to your attorney about a medical lien arrangement, ask your providers to hold billing until settlement, and check whether your health insurer or MedPay coverage will carry treatment in the meantime.
The statute
Banned outright. HB 315 — Prohibit Litigation Investments Act, effective June 22, 2026. North Carolina prohibits the product itself, so this is not a question of licensing: no funder may advance against a claim here, and we do not. 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If you are reading an article about funding law written before 2026, assume it is out of date.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.
North Carolina claim deadlines
The personal injury filing deadline in North Carolina 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
North Carolina 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 North Carolina?
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 North Carolina — 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.