Special situations

Can I use a personal loan for legal fees?

Short answer

Yes. Personal loans are commonly used for divorce, immigration, criminal defense, and civil-suit legal fees. Some specialty 'litigation finance' lenders exist for personal-injury plaintiffs but charge high rates. For most legal needs, a standard personal loan is cheaper.

Context

Legal fees can quickly run into five or six figures, especially for divorce, immigration, or criminal defense. Most borrowers find personal loans more accessible than legal-specific financing because the underwriting is standard and pricing is transparent.

Litigation finance (where a third party funds your legal fees in exchange for a percentage of any settlement) is a specialty product mostly used in personal-injury cases. Rates are effectively 30-50% APR equivalent in many deals. A standard personal loan at 12-25% APR usually beats litigation finance on cost for borrowers who can qualify.

Editorial

Reviewed by: Compliance Review
Last reviewed: May 22, 2026

Glossary: Personal loan

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