Yes, you can get a loan for attorney fees, and you have several routes depending on your credit, whether you own a home, whether you have a retirement account, and whether the legal matter is a pending lawsuit that could produce a settlement. The main options are personal loans, home equity lines of credit, 401(k) loans, and pre-settlement funding. Retainers commonly run $3,000 to $10,000 and hourly rates $250 to $600, so the amount you need to borrow can climb quickly once discovery, depositions, and trial preparation begin. Before you borrow, it’s worth knowing that contingency fees, payment plans, unbundled services, and legal aid can reduce or eliminate the need for a loan entirely.
Personal Loans
A personal loan from a bank, credit union, or online lender is the most direct way to borrow for legal fees. These loans are unsecured, so approval hinges on your credit score, income, and existing debt. 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 how your case turns out.
Credit cards are a variation on the same idea. A card with a 0% introductory APR can work if you’re confident you can clear the balance before the promo period ends, but the ongoing rate afterward is typically higher than a personal loan. Missed payments on either option hit your credit reports.
Home Equity Lines of Credit
If you own a home with equity, a HELOC generally offers a lower rate than an unsecured loan. As of early 2026, average HELOC rates hover around 7%, with a typical range of roughly 5% to 12% depending on your credit and the lender. You draw only what you need and pay interest on the outstanding balance, which fits legal costs that arrive in unpredictable chunks.
The catch is real. Your home secures the debt, and falling behind can eventually lead to foreclosure. You owe the balance whether you win or lose the case. A HELOC also takes longer to set up than a personal loan because the lender needs an appraisal and title review, so it isn’t the right tool if you need money within days.
Borrowing From a 401(k)
If your employer’s plan allows loans, you can borrow up to the lesser of $50,000 or 50% of your vested balance. You repay yourself with interest, so the interest isn’t lost, but the borrowed money misses out on market growth while it’s out of the plan.1Internal Revenue Service. Retirement Topics – Plan Loans These loans typically must be repaid within five years, and if you leave the job before then, many plans require full repayment by your next tax-filing deadline.
Miss the repayment window and the outstanding balance becomes 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 Legal fees aren’t on the IRS list of “safe harbor” reasons for a hardship withdrawal, so your plan isn’t required to approve a hardship distribution for this purpose, though some plans use broader discretion.3Internal Revenue Service. Retirement Topics – Hardship Distributions There’s no specific exception to the 10% penalty for legal expenses either.4Internal Revenue Service. Retirement Topics – Exceptions to Tax on Early Distributions
Pre-Settlement Funding for a Pending Lawsuit
If you already have a personal injury or other civil case filed, pre-settlement funding is a different animal from a traditional 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 recovery. The company looks at your lawsuit, not your credit or income.
The defining feature is that pre-settlement funding is usually non-recourse: if you lose, you owe nothing. The funding company absorbs that risk, and the price reflects it. Fees commonly run 2% to 4% per month, which compounds to roughly 27% to 60% or more annually. On a $25,000 advance at 3% per month, you’d owe about $33,800 after one year.
When your case settles, the money goes into your attorney’s trust account. The attorney pays the funding company what you owe before distributing your share. Regulation of pre-settlement funding varies significantly by state, so read the contract carefully and ask your attorney to walk you through what you’d owe under different timelines before you sign.
Alternatives That May Reduce What You Need to Borrow
Borrowing isn’t always the right first move. A few arrangements can lower your out-of-pocket cost or eliminate upfront fees entirely.
Contingency Fees
In many personal injury and some other civil matters, attorneys work on contingency, collecting a percentage of the recovery instead of billing hourly. The standard fee is roughly 33% if the case settles before trial and 40% if it goes to trial. You pay nothing upfront and owe no attorney fee if you lose, though court filing fees and other costs may still be your responsibility. Contingency is common in car accident, medical malpractice, and employment discrimination cases, but rarely available for criminal defense or family law.
Payment Plans and Legal Fee Financing
Many attorneys will spread your fees over several months. Some firms partner with third-party legal fee financing services that pay the attorney upfront while you repay in installments. Rates on these plans vary, so compare them against a personal loan before committing. Ask about payment options during your initial consultation; firms don’t always advertise them.
Unbundled Legal Services
Also called limited-scope representation, this arrangement lets you hire an attorney only for the pieces where you need the most help, such as drafting a motion, reviewing a contract, or appearing at one hearing, while you handle the rest. The total cost drops significantly. It works best when parts of the case are straightforward enough for you to manage with guidance.
Legal Aid and Pro Bono
If your income is low enough, you may qualify for free legal help through a Legal Services Corporation program. For 2026, a single person in the contiguous 48 states generally qualifies at or below $19,950, rising to $41,250 for a family of four.5eCFR. Part 1611 – Financial Eligibility Some programs extend eligibility up to 200% of the federal poverty guidelines for people seeking help with government benefits or disability-related issues. Local bar associations also keep pro bono referral lists. Calling your state or local bar is often the fastest way in.
What to Have Ready and What to Ask
Documentation depends on the product. For a personal loan or HELOC, expect to provide government ID, recent pay stubs, one or two years of tax returns, and bank statements. For attorney fee financing, you’ll also need your retainer agreement and a written cost estimate from the firm. For pre-settlement funding, the company works from the filed complaint, police reports or medical records, and your attorney’s contact information; it will communicate directly with your lawyer to evaluate the case.
Get quotes from two or three lenders before you commit. Read the agreement for the total repayment amount, the rate or fee schedule, and whether the obligation is recourse or non-recourse. Ask your attorney to review any pre-settlement funding contract before you sign.
If your attorney refers you to a particular lender or funding company, professional ethics rules require certain disclosures. Your attorney should tell you about any financial relationship with the lender, explain how their fee will be paid and what information about you will be shared, describe the costs and downsides, and confirm the financing doesn’t increase the fee you’re being charged. Your attorney 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.
One tax note worth carrying with you: interest on a personal loan or credit card used to pay legal fees in a personal matter, such as divorce, custody, or criminal defense, is not deductible.6Internal Revenue Service. Topic No. 505, Interest Expense Business-related legal fees and the interest to finance them are treated differently and may be deductible as ordinary and necessary business expenses.7Office of the Law Revision Counsel. 26 U.S. Code 162 – Trade or Business Expenses If a settlement is involved, the portion routed to a pre-settlement funding company doesn’t reduce what you may owe in taxes on the recovery, so run the numbers with a tax professional.