Yes, you can get a loan for attorney fees. The practical options are a personal loan, a home equity line of credit, a loan from your 401(k), or, if you already have a civil lawsuit filed, pre-settlement funding from a company that advances money against your expected recovery. Each one has a different cost, a different risk, and different rules about what happens if your case doesn’t go the way you hope.
Retainers alone commonly run $3,000 to $10,000, and hourly rates typically fall between $250 and $600, so most people financing legal work are covering a real five-figure bill. Before you borrow, it’s worth understanding what each option actually costs and whether a cheaper route exists for your type of case.
Personal Loans
A personal loan from a bank, credit union, or online lender is the most direct way to pay a lawyer. The loan is unsecured, so approval depends on your credit score, income, and existing debt rather than any collateral. Rates vary widely. Borrowers with excellent credit may see rates in the low-to-mid teens; fair or poor credit can push rates above 20%.
You repay the full principal plus interest no matter what happens in your case. That’s the main thing to sit with before signing: a personal loan is your debt, not your lawsuit’s debt. Missed payments go on your credit reports.
Some credit cards marketed for professional services offer a 0% introductory APR. That can work if you’re confident you can clear the balance before the promotional period ends. The ongoing rate afterward is usually higher than a personal loan.
Home Equity Lines of Credit
If you own a home with equity, a HELOC generally carries a lower rate than an unsecured personal loan. As of early 2026, average HELOC rates sit around 7%, with a typical range of roughly 5% to 12% depending on credit and lender. You draw only what you need and pay interest only on the outstanding balance, which fits well when legal costs come in waves across discovery, depositions, and trial prep.
The tradeoff is that your home secures the debt. Fall far enough behind and the lender can foreclose. You also owe the full balance whether you win or lose the case. HELOCs take longer to set up than personal loans because of the appraisal and title review, so this isn’t the option if you need a retainer paid this week.
Loans From a 401(k)
If your employer’s 401(k) plan allows loans, you can borrow up to the lesser of $50,000 or 50% of your vested balance. You repay yourself with interest, which is the appeal, but the money you pulled out misses whatever market growth happens while it’s gone.1Internal Revenue Service. Retirement Topics – Plan Loans Repayment is typically required within five years, and if you leave the job before the loan is paid off, many plans require the balance by your next tax-filing deadline.
Miss that deadline and the unpaid balance is treated as a taxable distribution. You’ll owe income tax on it, plus a 10% early-withdrawal penalty if you’re under 59½.2Internal Revenue Service. Considering a Loan From Your 401(k) Plan A hardship withdrawal is a different mechanism and generally won’t help here: legal fees aren’t among the IRS “safe harbor” reasons for a hardship distribution, so your plan isn’t required to approve one for this purpose, though some plans allow broader discretion.3Internal Revenue Service. Retirement Topics – Hardship Distributions There is also no specific exception to the 10% early-distribution penalty for legal expenses.4Internal Revenue Service. Retirement Topics – Exceptions to Tax on Early Distributions
Pre-Settlement Funding for a Pending Lawsuit
If you already have a civil claim in progress, such as a personal injury case, pre-settlement funding is a different animal from a bank loan. A funding company reviews the merits of your case and advances you money, typically 10% to 20% of the estimated settlement value, in exchange for a share of any eventual recovery. The company evaluates the lawsuit itself, not your credit or income.
The important feature is that pre-settlement funding is usually non-recourse: if you lose the case, you owe nothing. The funding company absorbs that risk, and the price reflects it. Fees commonly run 2% to 4% per month, which works out to roughly 27% to 60% or more on an annualized basis once compounding is factored in.
When the case settles, the money goes to your attorney’s trust account. The attorney pays the funding company what you owe, then releases the remainder to you. Regulation of pre-settlement funding varies significantly by state, so read the contract and ask your attorney to walk you through the total repayment under short, medium, and long timelines before you sign.
One boundary worth stating: pre-settlement funding is only available when you have an active civil claim with a plausible monetary recovery. It is not a way to pay for criminal defense, divorce, or any matter without a damages payout at the end.
Options That Reduce How Much You Need to Borrow
Before taking on debt, check whether one of these fits your case. Each can cut the bill enough that a smaller loan, or no loan, becomes workable.
Contingency Fees
In many personal injury cases, and some other civil matters, attorneys work on contingency: they collect a percentage of your recovery rather than billing hourly. The standard is typically 33% if the case settles before trial and 40% if it goes to trial. You pay no attorney fee upfront and owe no fee if you lose, though you may still owe court filing fees and other costs. Contingency arrangements are common in car accident, medical malpractice, and employment discrimination cases, and rarely available for criminal defense or family law.
Payment Plans and Attorney-Side Financing
Many lawyers will negotiate a payment plan spreading fees over several months. Some firms use third-party legal fee financing companies that pay the attorney in full upfront while you repay in installments. Rates vary, so compare the financing company’s offer against a straight personal loan. Ask about this during the initial consultation; firms don’t always advertise it.
Unbundled Legal Services
Also called limited-scope representation, unbundled services let you hire an attorney only for the parts of your case where you most need help, such as drafting a motion or appearing at a single hearing, while you handle the rest. The total cost is significantly lower because the lawyer isn’t running the whole case.
Legal Aid and Pro Bono
If your income is low enough, you may qualify for free representation through a Legal Services Corporation funded program. For 2026, a single person in the contiguous 48 states generally qualifies at or below $19,950 in annual income, rising with household size: a family of four qualifies at $41,250.5eCFR. Part 1611 – Financial Eligibility Some programs extend eligibility up to 200% of the federal poverty guidelines for people dealing with government benefits or disability issues. Local and state bar associations maintain pro bono referral lists and are usually the fastest way to find help.
What Your Attorney Should Disclose If They Refer You to a Lender
If your lawyer points you toward a specific lender or funding company, professional ethics rules require certain disclosures. Your attorney should tell you about any financial relationship they have with the lending company, explain how their own fee will be paid and what case information will be shared, lay out the costs and downsides of the arrangement, and confirm the financing isn’t inflating what you’re charged. They must get your consent before sharing confidential case details with a funding company, and the arrangement cannot interfere with their independent judgment on your behalf.
Interest on a Loan for Personal Legal Fees Is Not Deductible
Interest you pay on a personal loan, credit card, or HELOC used to cover legal fees in a personal matter, such as divorce, custody, or criminal defense, is not tax-deductible. The IRS treats it as personal interest.6Internal Revenue Service. Topic No. 505, Interest Expense
Business legal fees are a different story. Owners can generally deduct legal fees as ordinary and necessary business expenses, and interest on a loan used to pay those fees may also be deductible.7Office of the Law Revision Counsel. 26 U.S. Code 162 – Trade or Business Expenses For personal matters, miscellaneous itemized deductions that once covered certain legal fees were suspended starting in 2018, and that suspension has been extended indefinitely for tax years beginning after 2025.8Office of the Law Revision Counsel. 26 U.S. Code 67 – 2-Percent Floor on Miscellaneous Itemized Deductions For 2026 and beyond, assume you cannot deduct personal legal fees or the interest on money borrowed to pay them.