How Long Can a Lawyer Hold Your Settlement Check?

When a legal case is settled, the plaintiff often receives a settlement check as compensation for damages or injuries. An escrow account is typically used to hold these settlement funds until they are disbursed, ensuring that the funds are managed properly and securely. However, it’s not uncommon for there to be a delay in receiving these funds. Understanding why a lawyer might hold a settlement check and the legal time frames involved can help alleviate some of the stress and uncertainty during this period.

This article aims to clarify how long a lawyer can hold a settlement check and the reasons behind such delays. Pinnacle Legal Funding proudly helps clients in Texas, Florida, New York, and many other states across the country navigate the process of applying for pre-settlement funding and personal injury loans.

Understanding Settlement Checks

A settlement check is a settlement payment made to a plaintiff as a result of a legal settlement. This check represents the agreed-upon compensation for damages, injuries, or other claims resolved through the legal process. The settlement agreement, which finalizes the terms between the parties involved, plays a crucial role in the process of issuing a settlement check. Settlement checks are typically issued by the defendant or their insurance company and are made payable to both the plaintiff and their attorney.

How Lawsuit Funding Works

Lawsuit funding, also known as pre-settlement funding, can play a role in the settlement process. A lawsuit loan is a type of funding that provides plaintiffs with a cash advance against their expected settlement, helping them cover immediate expenses while waiting for the settlement check to be processed and disbursed. This type of funding provides plaintiffs with a cash advance against their expected settlement. It can help cover immediate expenses while waiting for the settlement check to be processed and disbursed.

Common Reasons for Receiving a Settlement Check

A Personal injury case is one of the common reasons for receiving a settlement check. Settlement checks are issued for various reasons, including personal injury claims, medical malpractice suits, employment disputes, and other civil cases. The funds are intended to compensate the plaintiff for losses such as medical bills, lost wages, pain and suffering, and other related expenses.

Reasons a Lawyer Might Hold Settlement Funds

Outstanding Liens

One common reason for a delay in disbursing a settlement check is the presence of outstanding liens, including outstanding medical bills. Liens are claims made by third parties, such as medical providers or insurance companies, against the settlement funds. Before the plaintiff can receive their portion of the settlement, these liens must be satisfied.

Legal Fees

Lawyers typically deduct their legal fees and expenses from the settlement amount before disbursing the remaining funds to the plaintiff. This process can take time, especially if there are disputes over the amount of fees or expenses.

Court Procedures

Certain court procedures and administrative tasks must be completed before a settlement check can be disbursed. This may include obtaining court approval for the settlement, especially in cases involving minors or incapacitated individuals.

Ensuring All Necessary Steps Are Completed

It is crucial for personal injury lawyers to ensure that all necessary steps are completed before disbursing the settlement funds. A personal injury lawyer plays a key role in this process by handling the settlement check, depositing it into a client escrow account, and facilitating the process of obtaining the settlement funds. This includes verifying the settlement amount, addressing any liens or legal fees, and complying with court procedures. These steps help protect the plaintiff’s interests and ensure that the settlement is processed correctly.

Legal Timeframes for Holding Settlement Checks

Typical Timeframes To Get Your Settlement Money

The timeframe within which a lawyer must disburse settlement money can vary, but it’s generally expected to be done promptly. In many jurisdictions, lawyers are required to disburse the funds within a reasonable period, often ranging from a few weeks to a couple of months after receiving the settlement check.

Variations Depending on Jurisdiction

The specific timeframe for disbursing settlement funds can vary depending on the jurisdiction. Some states have specific rules and regulations governing the disbursement of settlement funds, while others may rely on general guidelines. It’s essential to be aware of the rules in your jurisdiction and to communicate with your lawyer about any potential delays.

What to Do If Your Settlement Check is Delayed

If you believe your lawyer is holding your settlement check for too long, there are several steps you can take:

• Communicate with Your Lawyer: The first step is to communicate with your lawyer and ask for an explanation for the delay. Understanding the reasons behind the delay can help alleviate concerns and provide clarity on the expected timeframe.
• Request a Timeline: Ask your lawyer for a specific timeline for when you can expect to receive your settlement funds. This can help set expectations and provide a clear understanding of the process. If the settlement check is delayed, a legal funding company can provide financial assistance to help you manage your expenses during this period.
• Document Your Concerns: Keep a record of your communications with your lawyer and any concerns you have about the delay. This documentation can be helpful if you need to escalate the issue.

When to Consider Contacting a Legal Ethics Board or Seeking Legal Advice

If you believe your lawyer is unreasonably delaying the disbursement of your settlement funds or if you are not satisfied with their explanation, you may consider contacting a legal ethics board or seeking legal advice. Legal Funding Companies can provide guidance and assistance if there are delays in disbursing the settlement check. Legal ethics boards oversee the conduct of lawyers and can investigate complaints about unethical behavior. Seeking legal advice from another attorney can also provide guidance on your options and help protect your rights.

Understanding the reasons behind delays in disbursing settlement checks and the legal timeframes involved can help alleviate some of the stress and uncertainty during this period. It’s essential to communicate with your lawyer and address any concerns you may have about the delay. If necessary, consider contacting a legal ethics board or seeking legal advice to ensure that your rights are protected. By staying informed and proactive, you can help ensure a smoother and more timely disbursement of your settlement funds. Contact us today!